Wednesday, 16 September 2015

Exchange of business

This exchange of business is a model or a concept based on barter system. The exchange of products would be on the worth of money, the product is being exchanged for. For example, a hundred rupees product will be exchanged for another product that is of worth of rupees hundred only. There is exchange between products of micro and small businesses. Municipal corporation can give vending zones for such businesses, create a database of micro businesses and businesses for exchange. For maintaining quality of goods, government can have some quality seal/regulations. This kind of trade may allow for big thinking, retail business, production, growth of business and increase in the value of business i.e. there will be many products to sell.

Views of the various professionals from corporate retailing outlets, micro and small business owners, micro vendor federation and SME institution

According to one of the small business owner (retailer), today whatever product we buy is a licensed product. If something goes wrong then the blame should not come on us but the business who supplied it. We have business associations to protect us. Government license is a must to sell a product. Business exchange between small and small , micro and micro, and micro and small can be a feasible concept but there are things like who will ensure the quality of the products etc. If government makes some kinds of regulations to facilitate this concept, then it may be accepted by the businesses. Also small business owners wants to buy from those who may sell the product for a lower cost compared to other businesses. For example, a 50 rupees product if I can get it from someone for 40 rupees then I will buy it from him who sells it for rupees 40 and not from the one who sells it for rupees 50. So the government has to come into the picture.

Another very small business owner (retailer) says, that this exchange model will benefit small and micro businesses. The government can make rules and regulations for quality and fix the same rate for a particular commodity. For example, a 5 rupees product should sell for 5 rupees only and there should not be anyone who sells it for 3 rupees. Then and then only it will work.

According to another small business owner (mobile), this kind of exchange should be there but the product that I will choose to sell would depend on the customer's choice.

A fruit and dry fruit vendor said that this exchange model is good as because he will be able to sell clothes or mobile phones too.

Some of the micro business selling only fruits or vegetables in a particular area were of the opinion that they know only this business and they learnt the trade of selling fruits or vegetables with great difficulty and were not interested in other businesses. Few of them but wanted to see this scheme and then decide if they could get involved into this.

Some of the vegetable vendors in a different area said that they will be able to grow their business, if such things happens because they believed in looking forward and going forward. Today, they have a government place to sell and they don't have to pay anything to anybody or the Government. So they could arrange more than one place to sit in that market and sell many products. They also wanted to know the variety of products available for exchange for them to choose. One of them was interested to sell spices. They said the rate for a commodity that they would exchange would be decided by them. One of them was concerned with who will guarantee for the quality?

According to a micro vendor federation, workshop or seminars have to be organized and specialists in micro finance should be invited. Municipality gives vending zones, but who will monitor? If government makes rules and regulations for such business exchange then, this can be implemented and there may be business growth. Government organizations like National Bank for Agriculture and Rural Development (NABARD) and municipality should be involved.

Another professional from Government organization was of the view that awareness needs to be conducted for such a business. NGOs can take part in this.

According to another professional from SME institution, if this kind of business is done for a small quantity then may be it will not work . It should be done on a large scale, so that production will increase. For different types of commodities, the sale will increase, when there will be good turnover, there will be increase in profit. Many different types of customers would come. It will be convenient and comfortable for customers also. In corporate retailing business exchange offers are there. Awareness is to be provided, so that both the micro and small businesses and the bank benefit. Banks can provide capital. Government rules and regulations have to be there. Local government bodies can monitor this.

According to a corporate retailing outlet professional, nothing works in isolation. So the entire economy has to be taken in barter system. For example, for flying in a aeroplane, the barter for this service is money. In today's scenario, barter business as a whole is difficult. There are government regulations. Barter system business is o.k. for micro or small businesses and that too for only one or two products. This business exchange may fulfill only small needs. Since in barter system there was not 100% need fulfillment and that is why money was introduced. Currency is important. If there are twenty products for exchange then one is forced to take only specific things. In barter business exchange the biggest hurdle is that 100% need fulfillment is not being met.

According to another corporate retailing outlet professional, the compatibility in this has to be seen. It can become a good platform because exposure will be gained for the products of micro and small businesses and roduct awareness will occur which is very essential in today's business. It is not easy for everyone to attend trade fair.The number of product increases to sell in a shop. Khadi products will also get exposure in mass populi. If this business exchange is good and works, then policy formulation will not be far on this. There will be growth of businesses. In corporate retailing, daily need products are sold. Big corporate retailers can look into this to support such activities.

This business exchange could become a possibility if government may take some initiatives.

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