Demonetization – Is this right time to start eCommerce business?
Well! Building a business from scratch and managing a country’s economy are two different genres, which requires unique skill set and understanding of economics. Whereas, there comes a time in every business development procedure where knowing economics become important.
India under went Demonetization on 8th November and since then a lot has been said about its Pros and Cons. Some say common people are going to benefit from it while some refer to it as the biggest scam. Thought leaders, veteran economists and known professionals have cited Demonetisation as a new beginning, which surely says a lot about its positive impacts.
Here we are going to draw the points, which are going to work in the favor of Startups, E-commerce and Small Businesses, we will also discuss the drawbacks e-commerce and startups will have to face because of demonetization. Once we draw these lines, we will leave it up to you—talented entrepreneurs—to decide whether to start now or now.
The positive side:
A Digital India is Around the Corner: With currency valued 15 Lakh Crore being deposited in bank accounts, India is surely moving towards digitalization. Government is constantly encouraging common people to pay through cards and other electronic medium and also facilitating traders to accept such payment.
With less cash in hand, e-commerce businesses will be able to receive Prepaid orders, which are not cancelled easily. Cash on delivery makes people lazy, who lead to loss on the e-commerce side; with orders being prepaid, less number of people will reject the orders or return it.
MUDRA Yojana gets a boost: The contemporary government introduced MUDRA Yojana to fund startups and small-scale businesses. Prime Minister Narendra Modi announced it on 31st December that sanctioned limit of MUDRA Yojana would be doubled, which will ensure that the number of startups receiving seed fund will be doubled in 2017. More entrepreneurs will be funded, more problems will be solved and the world will become a better place to live.
Reduced Taxes: Yes! Demonetization is making it easier for government to encourage use of electronic modes of payment for types of transactions. Government has announced schemes through which small scale businesses and startups can acquire tax rebates if they are using electronic modes of transaction.
Reduced Interest Rate on Loans: PNB, HDFC, BOI and SBI Have already announced reduction on interest rates charged on Loans. These banks are now looking forward to give out cheaper loans and help people of India lead a simpler life. Demonetization has made it easier for banks to help those in need.
Demonetization may have taken the country by surprise but the reduced taxes, rebated loans and other benefits are going to make up for the inconvenience caused. The country is moving in the right direction and is ready to take farmers, entrepreneurs and modern day sellers together in to the future, which is brighter, happier and prosperous.