Prime Minister Narendra Modi today spoke of the importance of packaging, branding, and advertising for small enterprises so that they can upscale their business ventures.
“Brand building, advertising and financial support when given to small entrepreneurs will strengthen the foundation of Indian economy,” he said while launching the Pradhan Mantri MUDRA Yojana here.
Giving an example, Modi said that a mango grower can value added his product at local level by making pickle and can also do wonders by packaging it well.
“If he sells mango, he gets a little money. If he makes pickles, he makes more money. And if that pickle is packed in a nice bottle, he gets much more. If he puts the bottle in the hands of a girl for advertisement, he will get still more money,” he said.
Citing his experience as Gujarat Chief Minister, Narendra Modi said that he had helped the Muslim kite makers by encouraging small innovations. The small initiatives had helped in raising the business of kite making from ₹35 crore to ₹500 crore.
“...with a little help, have the potential to grow (increases) manifold,” he said, adding the biggest asset of the poor is integrity which can be combined with MUDRA initiative to achieve success.
With changing times, he said, “one needs to take advantage of branding and advertisement in promoting products.
We want to strengthen them. If they get empowered, it would help in raising GDP.”
Modi also sought to dispelling the perception that large business groups are high-employment generator by observing that they occupy large media space but provide much less jobs than small businesses.
While large business houses provide employment to only 1.25 crore persons, the 5.75 crore small entrepreneurs employ as many as 12 crore persons, he said.
The small enterprises with an average loan size of ₹17,000 use only ₹11 lakh crore funds, he said, adding “helping them would push the country’s GDP... We need to increase employment opportunities in the nation.”
The MUDRA Bank, the legal structure of which will be put in place within a year, will provide loans ranging from ₹50,000 to ₹10 lakh to small businesses.