Planning to Start-up in Export Business Space? Here is a Quick Guide!
In a recent conversation with Charulatha(Correspondent, Siliconindia), Partik shared his insights on various aspects pertaining to entrepreneurship in the export business, especially from today’s standpoint. Below are a few selected extracts from the exclusive interview –
What is the role of innovation and creativity in fostering an entrepreneurial mindset and driving export growth?
The export market has become very highly competitive across all industries in recent times. As a result, innovation is seen as the only ‘life saver’ for new exporters and business to grow and survive in this highly competitive business landscape. Apart from the competition from our domestic counterparts, we are facing a heightened competition majorly from businesses in Bangladesh and China lately in terms of quality and pricing. Thus, Indian businesses today are forced to innovate rapidly and develop something new that can aggravate their position in the market and achieve significant growth. Also, we are witnessing the emergence of a next generation of entrepreneurs who are highly creative and showing a lot of enthusiasm to explore new innovation opportunities. This is seen as a huge boon for our country’s export segment.
Throw some light on the key challenges entrepreneurs in the export business face while foraying into foreign markets
Lack of communication and inadequate information regarding the new geography is one of the major challenges entrepreneurs face while foraying into new markets. Also, there exists a lot of misinformation floating around pertaining to this matter, and most entrepreneurs fail to identify whether the information is legit or not, resulting in taking wrong business decisions and incurring losses. Thus, it is very much important for every entrepreneur to stay updated with the latest industry dynamics and do a thorough market research of the region that they are aspiring to foray into.
"Lack of communication and inadequate information regarding the new geography is one of the major challenges entrepreneurs face while foraying into new markets"
Briefly explain the importance of distribution for exporters dealing across international markets
Having an efficient and well-planned distribution network is one of the key factors that define the success levels for exporters in international markets. While there are a massive number of manufacturers currently operating in the country today, the success and growth of an exporter primarily depends on the distribution and sales network. Additionally, it is also paramount for exporters to maintain a strong level of trust and relationship with their distributors across all regions. This not helps the exports to know the on-ground realities and latest happenings in those regions, but also enables them to take quick decisions when faced with any unforeseen crisis.
Having an efficient and well-planned distribution network is one of the key factors that define the success levels for exporters in international market
Suggest a few effective ways in which exporters can secure finance for market entry costs in new international markets
Given the diverse spectrum and variety of risks that are associated with foreign export, it is very much essential to have a large amount of capital readily available if you are planning to expand your export business across international markets. However a big relief in this regard is that 90 percent of the goods that are manufactured for exporting are being insured by the Indian government. For this, exporters need to only pay a small amount of Rs.500 to get a credit report of the buyer if he is legit and isn’t debiting the vendors often. Additionally, the government has recently even launched an MSME scheme through with it is offering a collateral-free loan of Rs.2 crore to innovators and entrepreneurs.
What are some of the key qualities of a successful entrepreneur in the export business?
Having strong communication skills is a must for any entrepreneur. This holds especially true for those in the export business because need to have the necessary convincing power to negotiate with buyers. Since export business involves dealing with buyers from varied cultures and demographics, it is critical for every business owner to know what to speak, how to speak, and how much to speak. This might even be the deciding factor in making/breaking the deal with the buyers.