Tag: Small Business

image for blog locational advantages of setting up a business in finalnd for indian ICT SMEs

Locational Advantages of setting up a business in Finland for Indian ICT SMEs

Challenges faced by Indian ICT SMEs

Indian SMEs form the backbone of the economy. However, they face numerous roadblocks and challenges such as a lack of funds, poor infrastructure, inability to innovate, lack of skilled talent in IT, knowledge gap in technology and lack of skills and training. These problems require an out-of-the-box approach to resolving these issues and many Indian SMEs are looking to setup their business abroad to resolve these problems. Finland, has proven to be the best possible country for Indian ICT firms to expand to and this article explores exactly why.

Finland as the best location for international expansion

Finland is known as a world tech hub; the home of Nokia and Angry Birds. It is also the homeland of the SMS, SSH security protocol and the first wearable smart device. Indian giants Infosys, Wipro and TCS have long since set up operations in Finland. But Finland has also proven to be a hot-spot for Indian ICT SMEs that struggle to go forward in India.

Indian firms have expanded their business to Finland to resolve the problems faced as a small ICT SME in India, in particular finding skilled talent at competitive costs, lack of innovation and technology. This is because, in Finland, firms find various locational advantages that trump any other country or city in the world.

Important factors in selecting a foreign country

The most important choices to consider when it comes to choosing a foreign location are:

  • Recruitment
  • Costs
    Innovation
  • Government support
  • Customer Base
  • Legal structure and regulatory climate

Recruitment in Finland

Finnish authorities ELY (The Centre for Economic Development, Transport and Environment) provide help to Indian firms in recruiting and training people for their businesses.
ELY has a database of qualified personnel and means to advertise for them. They also co-finance training programmes with the company and the company jointly selects the final employee.
The human resource in Finland is also highly talented and skilled in the IT, ICT sectors. They speak fluent English and have experience in international business and multi-cultural contexts. For Indian firms looking for the best talent at competitive costs – Finland is highly suitable as the cost of labour is significantly lower than the US, UK, Germany and many other places.

Costs

Firms need to consider the costs of operating a business abroad along with the cost of setting it up. Costs must factor in labour, taxes, electricity, materials etc.
Finland has an economic and competitive human resource base compared to many other innovation hubs. Due to its advanced energy sector with a large percent of it being drawn from renewable energy – the cost of electricity in Finland is comparatively low.

Corporate tax is also very low for companies – at only 20%. The government also financially incentivizes firms set up in Finland through various R&D funding authorities and grants. All these factors together make Finland an economically viable location for Indian firms.

Innovation

Innovation is the key to success for ICT firms and Indian firms especially need a solid innovation ecosystem in which they can develop their R&D and get the latest and best in technology.

Finland is a highly sophisticated and future-ready centre for the development of disruptive and innovative products. Finland has a business ecosystem with a deeply entrenched culture of collaboration and cooperation. Suppliers, universities, government agencies, power supply lines and other infrastructural facilities all work seamlessly together to create a hotspot in which Indian ICT firms can thrive to their fullest potential and take their business and product to a world-class level.

Government Support

Indian firms that incorporate in Finland are treated as equally as local firms. Once part of the Finnish business system, an Indian firm gets full access to all possible aid from the ecosystem and the government.

There are several government agencies that offer support in all facets of operating a business. Authorities like ‘Invest in Finland’, ‘Business Finland’, ‘Helsinki Business Hub’ and PrEver and many more walk Indian companies through from market research to establishing their business and some services are even for free!

ELY helps with recuirtment and training, VTT, Tekes, Sitra and many more offer funding, loans, networking and more. Finland is the 3rd least corrupt country in the world and Indian firms enjoy high transparency and no bureacracy in Finland.

Customer Base

Firms can do a market study with PrEver to find out the potential for marketing their products in Finland. Given that Finland is a tech hub, there is wide scope for Indians to find a market in Finland.

Besides which, Finland is well connected to other European countries and cities and Finnair in Helsinki offers the fastest flights between the East and the West. Along with the local population’s skills and experience in multi-cultural and international business Finland is a powerful location from which to find a customer base for ICT firms.

Legal Structure and Regulatory Climate

Finland is the 3rd most transparent and 3rd least corrupt country in the world. Setting up a business in Finland is a quick and relatively easy process which takes only about 2 weeks to get done.

Finland is the most stable country in the world and offers excellent and reliable intellectual protection rights for individuals and businesses. Indian firms can rely on stable laws and regulations to protect them and can do no better than to establish themselves in Finland if they are seeking security and stability.

Support and advice for ICT small businesses in India

When it comes to the best location for a firm to go international, for ICT SMEs in India Finland is the best choice because it offers the best solutions and protection for a firm and helps the firm super-charge their growth to the next level.

Indian ICT SMEs need to seriously consider Finland as a location choice for global expansion. They can get in-depth and reliable help for market research, proceedural guidance, networking and more from PrEver Consulting, which is partnered with several Finnish agencies to help your global expansion experience happen with ease.

Contact us through our website and follow us to stay updated on relevant information.

Different Types of Funding Optimization for Your Small Business

Introduction

A small business thrives on capital put into it by the founders. As each of them have some amount of remuneration paid to themselves, the business in this mode cannot deal with expansion.

These payroll distributions limit the company to a certain area of inception. It cannot move out of its present location and the founders have to deal with it until there is a considerable growth of the company- big enough to support their salary needs.

What are other modes of investment?

There are other diverse modes of investment for a small business. Let’s take a look at them:

  1. Friends and family This is the most popular mode of investment by start-ups. There can be considerable amount put forth by well wishers who have a common goal towards the success of the company. Even there is a better aspect in terms of interest paid to these kith and kin. They do not qualify for returning the amount with a specific interest annually. This consensus is not good for the intricacies of the bonhomie shared with them. The spat can turn ugly with them feeling cheated or the relationship can turn sour after not being paid their due for a long time. I know a person who bore the brunt of bitter relationships once his wife behaved rigid with his partner- the partner’s wife usurped the whole company and even runs it still. This is a drawback. But it is advisable to offer some interest to them that is competent in the market, just to keep peace.
  2. Angel investing This type of investment is quite popular as these investors engage with start-ups. Many people get benefited from these affluent individuals. But these people get a share in your business and the details of the investment should be checked carefully.

Conclusion There are quite a few benefits from various types of funding. But, the bigger picture is being buoyant in the industry with perseverance and dedication. A keen eye and professional guidance is the key to success. PrEver Consulting is doing a lot in these regard to equip start-ups through Helsinki Business Hub and strategies.

PrEver Consulting, along with Helsinki Business Hub and the Finnish Funding Agency for Innovation TEKES invite you to connect with the impressive R&D and product evolution opportunities Finland has to offer with a deep-dive into the Finnish innovation & support ecosystem.

For more information click on the link below:

Accelerate your business to a global success story from Finland

 

How to Bolster Your Business in the Competition Around

Introduction                                                                                                   

There is a cut-throat competition in businesses world round. While this keeps you on your toes to devise plans and helps a business to grow bountifully, developing in quality, there is a need to stay abreast of your rivals.

How can one accomplish this?

People survive in such competition around too. All that one needs to do is maintain their focus on the goal of being buoyant. Here are some points that your business can work on:

  1. Uniqueness Your business should capitalize on the uniqueness it offers. This helps so that you can devise patents and licenses on your intellectual property. A great benefit of this is that no rival can copy your assets like these. Otherwise, your uniqueness may be lost and they may replicate them.
  2. Reputation A company should build up its reputation among customer circles by adhering to quality. The services such as call centres to handle customers’ queries should be professional and elitist. Employees handling such tasks should be fluent in English or other vernacular languages the customers demand. Any request of the customers should be handled without turning them down. Emails too should be attended within a few hours delay. This way a business can flourish.
  3. Research your field Set apart a time to research your market and rivals. Pricing should be at par with them. Also keep finding information about what they are up to. New features they bring about in their products should be brought in your products too.
  4. Philanthropy works Set apart some of your accrued revenue in such works. This develops an image in your customer base and the needy get benefited too.

Conclusion Businesses that are constantly changing with the market and adopting new trends get buoyed here. Many great businesses are made of this mettle.

Marketing Challenges Ailing Startups in India

Introduction

Startups have huge pitfalls in coming up with a good marketing strategy. However creative an entrepreneur may be, he has to firmly plant his feet on the ground looking for exciting challenges.

What are these challenges? 

Vector Business Competition Concept In Flat Style

Let us look at some of these:

  1. Non-specific content The content used in the marketing endeavour should be aimed at a targeted audience that is responsive. When this is overlooked and the content goes haywire, it needs to be brought on track. This is the problem with start-ups wherein the writeup doesn’t match to a specific audience. For example, a renewable energy brand that is aiming at a state with surplus energy such as Punjab –not frequented by power cuts– can be categorized as a failed marketing strategy. This is because the chances of lead conversions aren’t the most. If a marketing strategy is general or not accommodating people from different age groups or communities or inclinations as such, can experience a downturn in conversions.
  2. Having your way There should not be a headstrong attitude towards planning a strategy. A plan that is not strongly based upon analytics and is just on an opinion does not bode well for a business. Everything should be tested and implemented. There may be an innovative business idea on your mind, but it deserves to be put through trial and purged.
  3. Emphasizing sales Investing more and more on sales is a very big impediment facing start-ups. Marketing should take precedence and not a backseat. This should be borne in mind and focus can be on quality content too.

Conclusion A business that has a keen inclination to change and incorporates all the possible measures to emerge as being buoyed is worthy to become successful. There are great benefits of being watchful.

Startup Growth in India: The Potential

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Introduction

The Startups have a great potential in India, as a report by Nasscom-Zinnov states. It observes that India is the third largest startup contributor in the world- second only to the United States and United Kingdom. There could be a growth 2.2 times by 2020, which amounts to 10,500 new ones.

What are the ground results?

The Indian Startup ecosystem has a lot of rag-to-riches stories. Let’s look at one of these inspiring tales when it comes to software businesses:

Sridhar Vembu, the CEO of Zoho Corp. had a humble beginning in a middle class family, where his father worked as a stenographer in the High Court. His parents never went to college, but he understood the importance of education at this young age and did well at school. Then he enrolled in a Bachelor’s degree program specializing in Electrical Engineering at IIT, Madras. Later he obtained a PhD from Princeton.

Soon, he set up a business catering to the network equipment vendors. And then, he metamorphosed his company into an online applications provider.

His company never entertains capital from shareholders and successfully competes with Microsoft, Google and Salesforce.com. It is valued at $1 billion. There is an awe inspiring aura behind it as it competes with such computing and network giants.

How is the Government encouraging these Startups?

The government under the aegis of Prime Minister Narendra Modi has been greatly assisting the business of Startups through a lot of policies and frameworks. Here are listed a few of them:

  • Self-certification compliance regime Instead of the certification being cumbersome for Startups and making them run pillar to post to get this work done, this regulatory burden has become cost-effective. The companies have to be self-certified with 9 environment and labour laws. Nothing more.
  • Setting up of Startup India Hub This stakeholder in the thriving ecosystem of Startups will be collaborating with Central and State Governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D institutions. It will assist the Startups in financing, feasibility testing, market skills and will also mentor them with technical resources. It is tied up with educational institutions and R&D centres- be it government ones or private organizations. Startups will be effectively and thoroughly nourished and nurtured by this assistance of the Startup India Hub. This is a great sign by the government to herald a change in these budding businesses’ ecosystem.
  • Seamless and easy registration of a firm With the setting up of a mobile portal and an app, the registration of a firm will be made simple by just filling out an easy form downloaded from the app. The registration application can be tracked for progress and the final digital version of it downloaded from the app.
  • Fast patent examination This is done by Controller General of Patents Designs and Trademarks (CGPDTM) with lower costs than before and the government bears the facilitation costs.

Conclusion The Startup ambience being enriched by skilled talent pool and eased government regulations, the way these companies can go is only skyward. A conducive atmosphere like this one can bolster a business thoroughly with such added impetus.

Can India create the next Google or Apple?

Can we create the next Google, Apple, Uber, Air bnb, Alibaba, Amazon or valuable product companies like SAP, Oracle etc.?

The answer is NO. Not by the way we are thinking today!5_hpheader_home-page-slider

From the turn of the millennium we have been very successful in exporting IT services across the globe and that mindset has kept us in a comfort zone for quite some time. We have created great companies in IT services companies from the nineties. Most Indian entrepreneurs today come out from these large companies who have been used to the easy way of leveraging on foreign billing, hence taking advantage of the sliding rupee.

Today we do have Start Ups, incubation and accelerator programs for college graduates and folks willing to be entrepreneurs, but we either create an app, e-commerce platform, market place or a solution for an industry that caters mainly to the local market only. Only a few entrepreneurs are creating the next big wave in information technology or any Sciences.

For sure the local market is huge. That’s a no brainer. Even Jeff Bezos, Amazon Founder plugged and played India. But, the need of the hour is to create something that is not just good for the promising local market, but also for the whole globe. Internet penetration across the globe is increasing in leaps and bounds.

There could be several reasons to this. One could be that follow the cash creating leaders like Flipkart, Red bus etc. These companies are promisingly catering to the local market. There could be several reasons why they chose to remain within India.  The con or buck is just passing hands and nor real revenues are visible to the discerning.

The other reason could be the existing venture capitalist and investor community within India. Based on casual interactions with few top partners from the community, it is very clear that they are investing a lot in companies and ideas that can penetrate the local market. Many a times, they are talking registrations and sales from Tier 1 and Tier 2 cities of India. Could this make the Indian Entrepreneur from restricting himself? Many great global ideas get shot down in the process. It seems as though the investor community has a mandate or there could be some global political agenda behind this, as majority of the investment for these activities comes from abroad which is beyond the entrepreneur’s understanding. Moreover, the investment groups have got a taste of the quick valuation game and ROI by investing in companies that have penetrated the Indian market. They are taking the easier route out.

During my consulting with good Indian companies with promising products, I always used to tell them, that creating a product only for the local market is a “crime”. With internet penetration and connectivity growing across the globe including remote parts of Africa, it actually seems like a crime creating a product and solution only for the local market. Yes, of course you have to start local, but the ultimate goal must be to “Go Global.”

Consulting across the globe, it is very clear that governments of several G20 nations and developed nations are encouraging their entrepreneurs to come up with big technological ideas for the global market. It is also evident that they have created eco-systems where funding for product development and other activities for global reach are available. This is not yet available in India in a structured manner. Time for a change in mindset!

Hopefully the answer to my question mentioned above will become a firm “Yes” in the near future and this can happen only if you and I together decide to genuinely “Go Global.”

All the best Indian Entrepreneurs!

 

Importance of Digital Marketing for Small Businesses

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Digital Marketing is slowly casting a shadow on its analog counterparts. From the last decade or so,with the emergence of social media and growing use of smartphones, the latter one’s meaning has lost in this new world.

 What is its relevance in the marketing world?

The smartphone market has grown in leaps and bounds in India. From an era, wherein the usage of smart phones was limited because of expensive tariffs, this trend slowly changed over a period. Globally it was a rapid evolution over the past decade or so and smart phones gave you the power of internet at your fingertips 24/7, 365 days. This has been a totally disruptive game changer be it social behavioral disruption or ‘how you do commerce’ disruption.

India has grown into a behemoth when it comes to the number of users for devices such as smart phones. This could be ascertained from the fact that there are over 500 million + users for these devices in this country.

 What are the benefits of this type of marketing?

There are many distinct benefits of digital marketing for small businesses.

Level playing field :the digital marketing platform ensures a level playing field for such businesses when compared to their rivals and large enterprises. This is because there can be analytics provided to judge for the small businesses themselves to stay in the cut-throat competition around. Previously this was limited only to large enterprises.

Cost-effective:this format is very cost effective when pitted against the traditional marketing. A large part of this is because it negates the use of advertisements in newspapers, books, telecommunication, television and radio broadcasts.

 Digital marketing is a boon for businesses that have understandably less capitalization and resources. This type of marketing is to stay for a long time as people have a penchant to use the internet for their daily needs and entertainment on their handset; what with smartphones becoming your primary and lasting companion forever.

Finland: Land of Innovation and Collaboration

istock_000011790889mediumFinland has the best ambiance for setting up a software business. This is possible because of the conducive atmosphere created by this country’s different government agencies. There are a lot of companies that have set up their research and development wings in Finland.

Such companies have greatly benefited from the highly divergent business atmosphere. There are a lot of verdant parks and lung space to be rejuvenated after working considerable hours.

The talent pool of engineers is also an asset for Finland. It has a technical talent pool of 116,000 skilled people. This is the same thing echoing from Timo Jokiaho, the ex-Vice President of the Finnish R&D Center, Huawei, when he says, “It is easier to find top class engineers in Finland than in many other countries today. We’re also very happy with the smooth cooperation with research institutes in Finland.”

There are varied reasons for this pleasant reaction from the management heads of acclaimed companies like Huawei. Government agencies like Helsinki Business Hub do a lot for the software companies the world over who want to enter the software business in Helsinki. They provide funding for them and create a healthy atmosphere among the players.

It has helped Helsinki to retain the number one spot in property rights, intellectual property protection, venture capital availability, patent specialization in software, internet penetration and considerable helping in the least number of documents to be furnished to register a firm. Such conducive environment among the players is always a good sign to invest and reap manifold.

The IT population in Helsinki has 53% of Master’s degree and 23% of them have a Bachelor’s degree. Finland has the third lowest labour costs of IT talent in Europe.

The preferred language being dominantly English, there cannot be difficulties for outsiders. The reason being that whenever the natives are asked questions in a broken Finnish accent, the response registered is in English.

This is greatly efficient for companies who like to accommodate, relocate or shift their talent base to the Helsinki region. The employees can have a blissful experience when greeted with a verdant atmosphere all round. There are a lot of exquisitely planned urban spaces which include a conveniently compact City-Center.

This sprawling City-Center can help make a walk to any utility buildings, parks, banks, schools and other everyday destinations easy. In the next 20 years, there can be 80,000 new resident walkers in Helsinki.

This makes Finland one of the most sought-after destinations in Europe for world-class engineers because of the innovative and collaborative atmosphere all round. This quality of Finland has put PrEver Consulting firm on its toes to bring quality service to this region and helping software companies to make use of the ample resources offered here.