Small Medium Enterprises (SMEs) play a very significant role in the well being of any economic system. This role assumes still greater importance if the economies are in transition or belong to developing countries. As per a report by the Economist Intelligence Unit Survey economic growth (averaging 4.6% annually) has largely been due to the SMEs. While there can be a long list of benefits the SMEs offer, the weightiest is considered to be the freedom a small business offers to the entrepreneur to experiment and devise and take risks. It thus generates entrepreneurial zeal and a desire for personal achievement which motivates small investors and professionals. As per the same Economist report, almost half of those surveyed got into businesses for personal fulfillment. This urge for fulfillment then paves the way for the success of these small and medium businesses which in turn provide boost to the overall growth engine of any economy.

The benefits of SMEs are not confined to the developing world only but are predominantly visible in the developed world as well. Small and Medium Industries and small business community are the backbone of Europe’s economy. There are more than 23 million SMEs in the European Union, which represents 99% of European undertakings and are responsible for 60% of Europe’s GDP. They are also Europe’s main job creators as they employ over 100 million people.

For any economy, SMEs with high turnover and adaptability play a major role in reducing sector imbalances in that economy. Moreover, easy entry and exit of SMEs make economies more flexible and more competitive. Due to this ease of entry and the resultant increase in the number of small and medium businesses, a competitive market pressure is created which dilutes monopolies and helps increase quality of products and services.

Interestingly, most of the current larger enterprises have their origin in small and medium enterprises but downsizing, layoffs and mergers have made jobs in large corporations more risky and less attractive to employees. The beneficiaries of this are the smaller companies as more creative talent is usually keener to join smaller outfits where it can have a better opportunity to utilise and explore its potential.

Smaller businesses also tend to have closer customer relationships and cater to the client needs more effectively and promptly. Smaller businesses also offer better position to their owners to take quick decisions on innovation, pricing and other business strategies which render useful competitive advantage.

SMEs tend to employ poor and low-income workers and are sometimes the only source of employment in poor and rural areas. They are usually wide spread and reach out to a vast population of a country even in remote areas. This role of SMEs is particularly important in the developing countries where there is lot of poverty.

Pakistan is one such country whose economy has benefited a lot from SMEs. According to the Small and Medium Enterprises Development Authority (SMEDA), Ministry of Industry report, SMEs constitute nearly 90% of all the enterprises in Pakistan, employ 80% of the non-agricultural labour force and their share in the annual GDP is 40%, approximately. With these statistics, it will not be unjust to say that SMEs are the back bone of Pakistan’s economy too. Ministry of industry Government of Pakistan has helped the cause of SMEs to a great extent yet there are problem areas which require constant attention of the the Government.

Financing is one of the many problems the smaller businesses face. For SMEs, financial resources are often limited which often force the companies to select solutions which appear to be cheap initially but later the hidden costs surface during various stages of execution resulting in financial crises. Higher costs of R&D (Research AND Development) and training are issues where SMEs find difficulties especially in the face of limited capability of development and production.

Due to their small size, SMEs usually lack management capacity and their ability to access and analyse information is particularly weak. They cannot afford costly support services like financial, human resource, legal and training etc. At a more strategic level, SMEs do not have the capacity to influence the overall business environment in their favour as larger firms possess. In addition to assistance provided by SMEDA, SMEs themselves have to take measures to address the problems. They must develop strong management teams and adopt a culture of learning and sharing of knowledge with other SMEs. For financial assistance, SMEs have to rely on banks and have to find ways to overcome banks’ shyness to finance smaller businesses.

For more than thirty years developing countries’ economic problems have created major financial crises in the international community. Developing countries have remained so due to their low-income economies. African and Middle East countries live in ethnic diverse communities and are subject to political instability and corruption than Asia and Latin American countries that live in more homogeneous communities. There is more cost involved in a population of workers and who belong to different ethnic groups because of diversity, cultural differences, religion and language. The purpose of this economic development model is to address economic stability, the problems (value inhibitors), solutions (value drivers), the strategies and implementations of the economic enhancement in order to help the developing countries be less dependent on developed countries. So many studies have been conducted on developing countries, but none of the studies have focused on how the developing countries could apply or use the economic models with less participation of the industrialized countries. World Bank and United Nations ought to examine minutely any potential foreign aid application while focusing on this model for developing countries. This model will enhance in devising a strategic means of monitoring the developing countries before distributing fund to those that may not use the model or practice noncompliance. The practical sense of the use of this model is to elevate the developing countries to economic success and stability, and reduce their dependency on developed countries.

Role of leadership

In developing countries, most leaders behave and think differently. Although, these may not be tolerated by developed countries, they are the norm and are based on their ethnicity, beliefs, religion, culture, social classes, and assumption of supremacy. Negotiating and managing conflicts in developing countries is a matter of understanding the genetic makeup of that country. Diversity may create needs but these needs do not have to be neglected in order to create balance among the ethnic or sectarian groups. A Western countries’ style of negotiating and resolving conflicts may not be applicable in the developing countries where religion and ethnicity have continuously impacted the leadership in those countries. Hence, the inefficient and ineffective leadership have led to social development and economic neglect that have caused the worse economy and poverty in those areas. If politics are set aside and economic benefits are put in the forefront by these developed countries, the chances of conflict resolution will be increased.

Leaders who have vision for change may think about what the impact the economic and market development will have in the long-run, and in the locations and in the life of its citizens. The social problems in Malaysia exist because of the ethnic Chinese who are not Muslim in a country where over 90 percent of the population is Muslim.

In developed countries, situations create focus on civilization and leadership, where civilization shapes leaders and leaders shape civilization. Power is treated as a shared resource, but in most developing countries coercion is the system used by leaders. Leaders use physical, economic, and social threats and punishments to induce change in followers for the sake of the leaders. The leaders therefore have become power wielders. These leadership problems have impacted the economic and market structure of the countries. Hence, a new model may mean a step to a new and better way of life for all the developing countries. The Western part of the Asia continent is predominantly Muslims and still have untapped resources that have not been explored because of dictatorship, politics, religion, culture, beliefs, and diversity. Exploring these countries and helping them stabilize will transcend to trading with other developing countries, which will in turn pull them out of poverty, instability, and create peace among the sectarian and ethnic groups.

Asia

Before the coming of the tsunami in December 26 2005, the South Asian countries were poor and developing. Both the South and East Asia have untapped economic sources. These potential raw materials need to be explored in order to help develop the economic and market structure of the region. The tsunami destroyed the infrastructure, economy, and the lives of the people of the South Asian countries. The 6.3 in magnitude earthquake that hit the central java of Indonesia on May 27, 2006 destroyed what was left of the tsunami. These countries will benefit from cash crop, livestock, and poultry production because of their adequate weather and availability of natural water, which will not require a high technology in order to irrigate the farmland. Mechanized farming will need to be introduced and implemented to aid in maximizing production of agricultural products. The Eastern part of South Korea has a comparative advantage over industrial, commercial, and manufacturing production. Producing and trading on building, automobile, motorcycle, and other petty materials in the form of buying and selling will enhance in the development of the market setting and economy. This will help in the stabilization of the East and South Asian countries. A stable economy will help resolve and manage conflict in these countries that have different ethnic groups and history of diversity. The economic and market structure may also aid in the stability of the leadership, political and social system. The environmental problems may need to be addressed in order to guard against pollution or any unhealthy by products or waste materials that may cause harm to people or have short or long term health problems or may be fatal to people. If these countries are stable, they will attract foreign investments rather than needing foreign aid. The military disturbances in East Timor are not helping the economic and the market structure of the young independent country.

The four factors that determine the economic growth are labor, capital, land, and Entrepreneurship. Developing countries have more labor force with lower wages than developed countries and yet their economic growth is still lower than that of the developed countries. Capital is another problem facing developing countries. They need resources such as equipments, machines, factories, and money to work with. Labor without capital is synonymous to guns without bullets. Capital will also represent an investment that will pay off in the future. Most developing countries have untapped resources such as oil, gold, diamond, minerals, forests, and water that represent land which by themselves cannot stimulate economic growth unless they are explored and converted to goods and services. Technology enhances economic growth. A group of agricultural researchers from Texas A&M University and University of California-Davis acquired a four-year grand of $4.4 million from U.S Agency for International Development’s Mission to Afghanistan eGrazing. This discovery will aid the livestock herders to successfully tend to cattle, sheep, horses and goats. If this system had been in place, it may have made an impact during the tsunami in Indonesia. Political and social factors that inhibit Economic Growth are corruption, instability, lack of leadership and administrative skills, population growth, and lack of business enterprises.

Africa

African countries are very poor and in dare need of economic and market structure development. Before these countries go global, they may to have sufficient needs of life by taking comparative advantage of their sources of raw material. Some have cash crops that need to be irrigated, some have livestock and poultry that need to be technologically upgraded, and market structure that needs to be redesigned, developed and implemented. The improvement of the agriculture will help the poor farmers send their children to school, build infrastructure, develop the quality of institutions, and make a smooth run of transportation.

Middle East

Middle East region is a turbulence area because of instability associated with religion, oil, dictatorship, and developed countries’ influence. The Iraq war has devastated the whole region, and couple with the Israel, Palestinian, and Lebanese conflict, which has created further economic drawbacks that amount in billions of dollars. The destruction of the infrastructures, and the lost of lives have sent the economy of Lebanese country decades backwards.

Latin America

Development in Latin Americans countries could stem from agriculture, forestry and fishing, to mining, and manufacturing. These Latinos can help in building their countries rather than trying to immigrate to United States of America. If guided, they will improve their countries’ economy and help in the marketing of agricultural, manufacturing and other natural resources. Immigrants spend much time in the state of California farms, Illinois factories, North Carolina, and areas in the north east of United States of America working mostly in food industries. These efforts can be redirected to Latin America in order to develop the entire area.

Political struggles, lack of administrative skills, and power supremacy have strangled the economic and market structure of most countries in Latin America. For decades the Latinos have traveled north of the border to United States of America in search of better lives. This economic situation has resulted in the deaths and mutilations of people trying to enter United States of America. The smugglers who are known as the “coyotes” have made huge profits for attempting to transport these illegal Latinos across the border. It is very dangerous ventures because of the hot temperature, train transportation, unhygienic felt, bad weather, lack of food, water, and other unknown dangers along the road to the border. Immigrants spend months traveling to the border and most times do not make it to United States because they are caught and send back south of the border. Most gang groups have resorted to kidnapping wealthy Latin Americans living in the United States side of the border for huge ransoms, demand thousands of dollars in exchange to the kidnapped victims and most of the times these victims are killed. Families are separated due to fractured economy when men live their families for years in search of money for food in the north of the border. Income is not redistributed to the population, the rich gets richer while the poor gets poorer. The people of Latin Americas deserve more from their leaders and their natural resources, which has not happened because of corruptions and drug kingpins who have operated by intimidation, coercion, and fear.

The Four “Pies” facing developing countries

Poverty stems from lack of education, opportunities, and low literacy level. These countries do not put too much emphasis in education as they resort to marrying more than one wife and having too many children. Farming and herding have been their main source of food production and livelihood. Ethnicity is attributed to too many tribes, languages, and dialects. It has also contributed to lack of trust amongst different ethnic groups due to lack of understanding each other’s culture and tradition. They have become one country but different people. Instability is created by lack of a stable government by corrupted leaders, who always come to power for the purpose of stealing funds. That ultimately leads to no mandate to build infrastructure, and develop the economy and market for the country. When people’s needs are not met, most of the times in developing countries, rebellion begins when the government neglects a certain group of people. When people are deprived of the necessities of life while the other group has it all because of their ethnicity and religious sect, it creates tensions that lead to a “time-bomb” ready to explode. These most times cause conflicts that are attributed to hatred, sabotage, riots, revolution, and deaths. This is common in the developing countries where corruption and venality have played a role due to self-centeredness on the part of the leaders. Leaders therefore resort to intimidation of their citizens and thereby control these countries by coercion.

17 Strategies for implementing economic and market structure in developing countries

(1)A comprehensive education across the country needs to be instituted. This may be in the local dialect and language in order to make it easy for the citizens of that area. Assessment test of individuals’ talent and abilities need to be explored, recognized and documented to be sure where these individuals’ maximum potentials lie. A program needs to be instituted in order to teach the citizens methods of family planning and birth control. Individuals also need to understand the social and economic benefit of the birth control.

(2)Some individuals may have ability in agricultural work (Crops/livestock/Poultry). Locations with fertile lands need to be located and utilized for crops and livestock, and those areas without fertile land may need to be used based on its comparative advantage, such as poultry, storage of byproducts, and market areas.

(3)Supermarkets are to be constructed in all densely populated locations or urban cities to enable the young men and women find and keep jobs. The stores will consist of three shifts so that students can work and at the same time go to school and do their schoolwork. These markets will be located in the areas where people can afford to shop. A Wal-mart (USA) approach will be most appropriate in these locations. The four utilities of market will have to be considered and instituted as the main reason for the location of the supermarkets.

(4)Consideration of the product that people will want, the price to set for the product, the place that will be appropriate for the supermarkets and their nearness to the people, and how the promotion of the product will be conducted in order to reach the consumers and customers.

(5)The nomadic approach of rearing, transporting, and selling livestock will be changed to using trucks to transport them if it involves long distance in order to avoid spreading of any diseases such as mad cow disease and other diseases that come from livestock feces as they are transported though out the country. Trading locations where buyers and sellers meet, and the days to meet are to be established in both rural and urban areas.

(6)Areas where people still live in poverty, a trade by barter may be established so as to allow the farmers who want to exchange items from their farms to bargain for exchange. This short-run method will continue until the economic development is in place and running.

(7)Foreign investment and property rights need to be considered as part of encouraging investments and savings in order to stimulate the economic growth. This method may help the developing countries to invest less money on capital goods, create more competitive markets, and in turns reduce or eliminate corruption.

(8)Establish local leaders by ethnicity, who will act as representatives or middlemen between the government and their ethnic group. These local leaders may be selected by group they represent and approved by the government to ensure they are working on behalf of the people they represent and not for their own self-interest. In addition, the African experts may be contracted to help establish the boundaries of no corruption.

(9)Individuals have certain religious beliefs and different ways of thinking, and as such need to be segregated according to their sect for the benefit of market structure and economic development. Individuals who understand that certain groups have designated times in which they pray will have no problem doing business with such groups. This may reduce tensions for those who understand the culture of those religious group, and for those, who do not there will be tensions and uneasiness, which is the reason for grouping citizens according to their religious sect.

(10)Government need to institute “watch dog groups” in order to police the programs and to make certain that the programs are in place and running. A 3-year trial needs to be established for any program of economic and market structure that is implemented for these countries. This is enough time to evaluate the program in place in order to ensure its workability. Experts in Africa need to be involved in all phases of implementation in order to combat corruption and promote stability.

(11)Poverty may be reduced if adequate and stable structure for economy and market is established, and the government leaders via the local leaders address all citizen’s problems. The essential necessities — housing, clothing and food – may be the top priorities for these countries in order to reduce the poverty.

(12)Professionals and skilled workers are to be encouraged through issuance of incentives in order to motivate them to stay and reside in these developing countries and help in the development of these countries rather than leaving for developed countries. Mass exodus from these developing countries only harms and delays the development of these countries.

(13)Construction of infrastructure such as roads, buildings, and bridges are important for the economic and market structure of developing countries. Food products and other necessities of life can be transported to their respective destinations as quickly as they are needed when good infrastructure is in place. It may also encourage in foreign investments. Investors will prefer to invest in stable countries to unstable countries.

(14)Construction and installation of adequate running water in developing countries and to all parts of the countries also will help in building stable economic and market structure. It will help in curtailing diseases such as typhoid’s and malaria that usually come from unclean water. It will also help the children to focus in education and literacy programs rather than traveling miles upon miles to fetch water from the streams and wells. Some of these children die in taking these water-fetching adventures.

(15)Installation of electrical system may help in the growth of communities. Businesses cannot operate adequately where electricity is lacking. As such, these countries will require electricity in all areas of the countries as a form of economic development and market structure in order to help businesses function and grow, help in the food storage, and eradicate waste of food products that would otherwise be stored safely in cold rooms and refrigeration.

(16)Social Organizations need to be introduced to help the poor get out of poverty, and give them the opportunity to operate their own small businesses. This type of organizations are set up by the government as not-for-profit organizations, and the purpose is to develop the people’s business skills and issue them interest free start-ups loans to enable them manage their own businesses, which in turn lead them to poverty free. They will guided them to the type of businesses to open, how to open them, where to open them, and why they should open those kinds of businesses.

(17)The potential goals may be achieved by enforcing the use of this model as a condition of receiving funding or foreign aid. As a way to check and ensure that monies do go to what they are intended for, developing countries pledge to use and implement this model. This model will check and police the development of the projects. The intention of this requirement is not to discriminate against developing countries, but to help the citizens of those countries as they have no way of benefiting from these funding and foreign aid that usually end up abused, misdirected, and misused for other personal and private purposes by the leaders due to corruption and venality.

In spite of this large number for expatriates and international migrants, there is still very little relocation support on the continent, an even more critical shortcoming in countries where the tourism sector is not developed. And very few companies have a physical presence on the continent. Where it exists, in places such as South Africa, Kenya, Morocco and Tunisia and Nigeria, the market for relocation is much segmented and it is still hard to find a relocation vendor that has the capacity to deliver full comprehensive destination services to outbound and inbound assignees.

One area of relocation services that has seen growth is real estate – as construction is booming on the continent, to the point of becoming one of the most profitable business sectors – easily reaching 20 percent rate of return in unsuspected cities such as Dakar, Rwanda and Accra. Even then, it is in most cases loosely organized and operated by individual agents with no formal listing in the majority of the cities on the continent.

And yet, there is no other place where having support is more crucial to new expatriates given the nascent destination service sector coupled with language and cultural challenges which can definitely affect an assignee’s ability to settle in and be productive.

Part of what is at play is the belief that Africa is largely undeveloped with no modern amenities and that those expatriates who go to Africa are rugged adventurers who need little help and can fence for themselves. After all, why would they choose to go to Africa? There is also the (largely incorrect- since movers tend to markup shipment to the continent raking in huge profit margins) business view that there is little money to be made in the relocation and move business. These misconceptions put a brake on potential business expansions and make assignee leery of moving to the continent. Worse, in the international development arena, these misconceptions actually keep Africa from benefitting from the best minds that, instead, choose to offer their eservices to developing countries in Latin America and Europe.

Africa’s story needs to constantly be retold to balance the views that westerners and even African have of her (I will always remember black South Africans referring to a friend and I as “Africans” after a soccer practice- which drew a strong rebuke and a cultural lesson from us!). To begin with, it is good to remember that it is a continent with 53 countries with an incredible diversity- often within the same country- Cameroon being one such good example with over 200 distinct languages and is a full scale representation of the different fauna including a desert, a savannah and a rain forest! And while there is plenty that should be fixed the good story about Africa include the following facts:

Several African countries (e.g. Ghana, Tanzania, Tunisia, and Rwanda) are rated higher than BRIC countries in ease of doing business and corporate governance

Africa has 36% of the world’s emerging market countries, 30% of the mineral resources, and will have 20% of the global population by 2050 yet receives only 4% of foreign direct investment (FDI).

Africa on a relative basis was more resilient than most other Emerging countries (not to mention developing countries) in the recent global downturn.

Africa has had the highest rate in growth of private FDI to emerging markets since 2004 and this is expected to increase by 22% in 2010

Africa has $980bn in infrastructure requirements over the next 10 years (including power and telecom).

The profitability of foreign companies in Africa has been consistently higher than in most other regions of the world, reports the UNCTAD study.

Since 1990, the rate of return on foreign direct investment (FDI) in Africa has averaged 29 per cent, and since 1991 it has been higher than in all other regions, in many years by a factor of two.

All of this prompted Jens Schleuniger, manager of the Deutsche Bank DWS Invest Africa LC fund, to say in a Reuter’s interview. that Africa’s potential is so great that investors should actually prefer it to China because its stocks are significantly undervalued. According to him, “Few know that Africa is the second-most dynamic growth region behind Asia,” he said. Though, as many he admits that, there is a lack of trust as many investors attach too much importance to political risks. I believe this is partly exaggerated.”

As the senior adviser in Africa for the International Monetary Fund (IMF), David Nellor, noted in a report last September, sub-Saharan Africa today resembles Asia in the 1980s. “The private sector is the key driver,” wrote Nellor, “and financial markets are opening up.” War is down. Democracy is up. Inflation and interest rates are in single digits. Terms of trade have improved.

For those who still doubt my sense of optimism about the continent they should have tea with the Chinese and find out what is driving their enthusiasm about the continent. While the old superpowers still agonize over Africa’s poverty, China is captivated by its riches. Trade between Africa and China has grown an average of 30% in the past decade, topping $106 billion last year. Chinese engineers are at work across the continent, mining copper in Zambia and cobalt in the Democratic Republic of Congo and tapping oil in Angola. “We will continue to have a vigorous aid program here, and Chinese companies will continue to invest as much as possible,” Chinese Foreign Minister Yang Jiechi said in South Africa in January. “It is a win-win solution.”

Project outsourcing meant to get an off shore contractor, who would assume the responsibility of completing the project requirements within the stipulated time. Mostly this was being done by the IT companies throughout the world, which would also reduce the cost of setting a branch office and its maintenance.

What kinds of projects are outsourced?

There is no such thing that limits the type of projects that can be outsourced. Outsourcing projects varies from simple data entry work to software development. Outsourcing has the power to achieve substantial business growth. Even intricate services like call centre and customer care are outsourced. Projects tend to be outsourced to developing countries which holds the man power, but lacks in basic pay. The basic pay that you will be offering might be of greater value in that specific country. Thus facilitates finding cheaper labor. The projects can be well maintained for a long term only by hiring contractors, for which you have to shed some extra bucks from your pocket. At present projects are outsourced on a regular basis to countries like Brazil, India, China and Malaysia.

Project outsourcing and the Internet go together

The internet globalization has made it possible to find people for your project requirements throughout the world. Ultimately you will end up in finding freelancers doing a major contribution in taking up projects. There are a number of websites holding thousands of freelance workers, who could be easily contacted for taking up your project. Since many of these freelance workers are from the developing countries too, you can get the work done at a much cheaper rate. They post their work samples and skills to facilitate easy service. They will be ready to accept payments in any type of currency and generally vary from five to fifteen US dollars.

The general procedure of project outsourcing starts with posting a brief project description, on the freelancing websites. Soon you will find people interested in taking up the project, thronging with specialized skill sets. Now it is in your hand to choose the best ones and can also make bargains on the rate. All depends on the quality of your communication to sketch out the skill requirements that you expect, project timing and the rest which people need to know before they start work.

The range of applications has now evolved from the specifics of the early days to a range of customized software programs that are far more complex and covers a much larger area of operations. The fields where outsourcing software development is playing a crucial role include such industries as retail, finance, transcription, pharmaceuticals and e-governance.

What Are The Advantages?

The prevalence of outsourcing of software development testifies to its numerous advantages both for the client company and the service provider. The rapid advancement of this offshoot of IT technological procedures has speeded up the progress and evolution of information technology. Almost every country has felt the influence of the phenomenon.

The enhanced cooperation and links between different countries has literally changed perceptions about how business is conducted and transformed the world into a global marketplace. The proven advantages of outsourcing of software development have induced most of the global IT majors to open branch offices in the developing countries to facilitate these operations.

Aviation normally connotes a dichotomous division into:
Civil Aviation
General Aviation.

Civil aviation is further classified into:
Military
Government and airline companies (airliners).

General Aviation deals with private aircraft owners, aircrafts of companies, flying clubs, small taxi operators etc. Thus, General Aviation includes all aircrafts not flown by the government and airline companies called scheduled operators and/or the military.

General Aviation (GA) is also regarded as a catalyst for economic growth. Businesses that use general aviation have been demonstrated to achieve competitive advantage, while communities gain occupations and access to the country’s extended air transportation system.

It benefits the users of transportation services and also the country’s economy at large. Zinc heightens the efficiency and productivity of businesses by reduction of travel time that would be required to drive in order to use more congested commercial airports. It provides practicing most new pilots.

Companies/ Government Agencies may use airplanes/ helicopter to:
For corporate Use
Offshore purposes especially helicopters
Emergency Medical Services (EMS)
Disaster Management
The most recent statistics for the civil aviation sector depict:
FDI as much as 100 per cent is allowed underneath the automatic route for Greenfield projects.
For existing projects, FDI up to 100 per cent is allowed; while investment up to 74 per cent under the automatic route and beyond 74 percent under the government route.

The Indian aviation market is one of the fastest-growing aviation industries on the planet with private airlines comprising more than 75 percent of the sector of the domestic aviation market (by 2006). A substance annual rate of growth (CAGR) of 18 per cent and 454 airports and airstrips in place in the united states, of which 16 are designated as air-ports, the time has come to watch the increasing development of aviation sector.

Today, the overall aviation sector is most neglected within the civil aviation industry. It’s treated like a step child of aviation in India. There aren’t any separate guidelines for general aviation. In India there is no concept of FBO’s (Fixed Base Operator), helicopters or GA (General Aviation) terminals. Maximum use of General Aviation is within corporate charters, then offshore operations through helicopters, tourism etc. In the private charter industry itself it comes with an estimated business of Rs.2900 crores also it shouldn’t be neglected. General Aviation in India is a very specialized niche, especially since it is straight forward and has instant availability status. The value additional benefits of private aircraft are that it can fly to destinations not included in scheduled airlines, can access over 400 air strips (Only 90 are operational right now). The versatility of helicopters of reaching where nothing else can is not being exploited to its best potential.

The reasons which have result in the poor growth of general aviation are mainly:

Insufficient infrastructure- There is non-availability of FBO’s (Fixed Base Operator), terminals. The numbers of agencies for ground handling are extremely restricted, there’s non-availability of MRO’S (Maintenance, Repair & Overhaul) and increases price of maintenance. There isn’t any separate parking and also the helicopters are operating out of airports. There are no heliports and heli-routes in India till date.

Restrictive regulations- A lot of agencies take part in the process of getting a private aircraft for example Secretary of state for Home Affairs, Ministry of Civil Aviation, Directorate General of Civil Aviation, Bureau of Civil Aviation Security, and Airport Authority of India. 25% of duty is only restricted simply to the corporate aircrafts, which increases costs. The dog owner needs to restrict himself to operational timings at major metros, which renders private ownership useless.

Insufficient Manpower- There’s shortage of pilots and engineers. In India you will find 35 flying schools, which are not producing the necessary number of pilots. There is a need for about 50,000 employees and 15000 engineers within the airline industry.

The overall aviation sector still has large scope for growth, through the intervention of non-public players and the availability of the purchasing power among the classes. The Business Aviation Association of India estimates that general aviation for the reason that country will probably grow by 30% to 40%. Using more than 700,000 Indians comprising a cumulative wealth of $3 billion, this comes as no surprise. Deregulation, availability of finances, eased regulations for foreign investment in Indian companies, and paradoxically, the painful connection with travel on a commercial jet are driving this growth.

The Road Ahead

Investment opportunities of US$ 110 billion are now being envisaged up to 2020 with US$ 80 billion towards new aircraft and US$ 30 billion towards growth and development of airport infrastructure, according to the Investment Commission of India.

Indian aerospace companies are growing too. Hindustan Aeronautics Limited (HAL) was ranked 40th in Flight International’s list of the very best 100 aerospace companies last year.
Aircraft manufacturing major, Boeing, is in the procedure for establishing the US$ 100 million proposed Maintenance Repair Overhaul (MRO) facilities in Delhi. Air India is also along the way of launching a Cargo Hub in Nagpur while Deccan Aviation has started one in the city.
GE Aviation and Air India will jointly invest US$ 90 million to set up a maintenance, repair and overhaul (MRO) facility in Mumbai.
Indocopters Private Ltd, distributor for Eurocopter helicopters in India, is planning to setup a helicopter maintenance, repair and overhaul (MRO) facility in Bhubaneswar, the business’s fourth service centre in the country.

Conclusion

General aviation keeps growing rapidly both in the developed and developing countries. India’s general aviation has failed to keep pace with the remainder of the world because of general misconceptions, non-awareness and miscommunication between government and public and insufficient infrastructure.

With 83,000 billionaires in India, and growing in the rate of 20% per year, the potential is amazing. Yet, there’s a strong belief in India the aircraft is really a luxury item. Realistically speaking, an aircraft is not a luxury item. Actually it may bring about an organisation operating more proficiently with lots of financial, economic and social benefits. It can provide a multi- utilitarian denomination towards the market.

Business process outsourcing is among the most rapidly growing industries these days. Although it is not a business, it offers various sub activities of numerous main industries such as manufacturing, trading, marketing, banking, insurance and financial services. Since itworks for those these industries, it’s been treated being an industry. This really is due to the enormous growth and development of outsourcing of labor previously couple of years within the globe in lots of countries.

BPO in simple language can be defined as the act to give a specific function or work to a third party using the condition to maintain required standard and quality in order to concentrate on your core activities. So BPO simply helps you in focusing on your core area and other non core activities could be outsourced to an outside agency that it becomes a core activity and also have specializations.

In past, there have been no such specific outside agencies which were existing however when people knew relating to this advantage they started focusing on the non core activities of huge corporate which has a huge volume of work and started providing these companies using the specialization of labor for his or her non core function, which is very large number and gives cost benefit to all of the parties active in the transaction and generates great job opportunities.

2. HISTORY

BPO as a concept and industry has really emerged and recognized to people in the past few years but it’s not really a new activity for people. People in their day to day life and even in the small and big business have used the outsourcing model since years. Few e.g. could be the keeping a maid at your house . to handle the standard home cleaning work so that you can concentrate on activities for important to you. For business the manufacturing units many times send material outside to job worker for some process.

I rather something believe that an entrepreneur is the oldest example of outsourcing because he is the person who comes with an idea or some business design. He starts his business and at the initial stage he himself is involved in handling many functions for example production, marketing, accounting, finances etc. But because he grows he hires people to handle various functions and he focuses on the core activities of economic development. When the organization grows to a great level he may further outsource many unproductive and non core activities to outside agencies. But in all of this he never compromises on the quality of work and the deadlines.

Therefore the outsourcing has been existing for years for the people who had the thrust for that competitive advantage for cost and quality. Since individuals have really understood it as a strong business design they’re really creating more opportunities on their behalf.

3. INTERNATIONAL BPO

The actual fact that how BPO became recognized to people of India so fast, was due to the international outsourcing model i.e. outsourcing between the two nations. As we know that there is a huge gap within the cost of manpower and infrastructure within the developed and developing nations. Both of these costs are further impacted by high population within the developing or undeveloped nations making the manpower cheaper during these countries. It has led to the historical growth in the international BPO market.

The above mentioned opportunities happen to be observed by the multinational companies and also the international corporate environment and they have really taken the advantage of this by outsourcing the job to India along with other underdeveloped and developing nations.

The 80 % from the business for export BPO is from the 2 countries i.e. US and UK and this has established an addiction of these nations. This increasing trend of international outsourcing gave a setback to the developed national for example unemployment and other social security issues and due to this the administrator of these countries has started demoralizing the outsourcing model. Further it has been hit by the recession in the international market. The main reason I could understand is that that these nations have outsourced the work however they really could not focus on their core activities and specialization. This has created uncertainty within the highly growing international BPO market.

The above mentioned factors have made the International BPO tougher and resulting in Indian BPO Industry to rethink their strategy and a have to broaden its horizon and look for alternative path of growth that is less volatile and impacted by the worldwide country and industry specific dominance. There are many advantages and factors which supplies us the reality the domestic outsourcing will be very successful in India. We will analyze each factor individually. First take a look at the potential for the Indian Domestic BPO market.

4. SCOPE IN DOMESTIC BPO

The Indian BPO Industry has a huge potential which may be tough to assess. Individuals have realized the benefit and advantages of the Domestic BPO and many from the big companies like Infosys, satyam, Infovision, Intelenet have started concentrating on the domestic BPO realizing the future of the Industry.

Indian domestic BPO industry as per the report distributed by E & Y is at a market size of $1.62 Bn in the year 2008 with a rate of growth of 50 % previously five years that is higher that the export BPO market. It is expected to reach at the $ 6 Bn through the year 2012with a maximum addressable opportunity of $16-19 Bn.

Further similar data have been given by IDC forecasting the marketplace size to reach $6.82 Bn through the year 2013 and can keep growing for a price 33.3% to achieve the above target. The development rate is very impressive.

Further the banking, Finance, telecom and Insurance sector are required to grow at 20-30% growth rate over next 3- 5 years which sectors contribute Eighty percent towards the BPO industry. Hence the exponential development in these sectors will need these phones intensely focus on their core activities. In addtion industry another industry such as travel, healthcare, media and retail will also be fascinated with the cost benefit of the domestic BPO industry. The focus can also be shifting from voice based outsourcing with other outsourcing work such as HR and F&A.

Although the profit margin in the domestic BPO are lower than the international still the web margins are expected to increase from 8-9% in 2008 to 11-12 % in 2012 and even more when the resources of the interior part of India are used properly.

Thus besides the above facts there are lots of other factors which will make the Domestic market more appealing and interesting.

4.1 Manpower advantage

India has ample manpower resource which is great for the services industries, it has already been proved that manpower is one of the biggest cost advantages within the outsourcing model. As you may know that within India itself there is discrimination within the salary and wage structure which could act as a great advantage for the domestic outsourcing industry. These salary structures turn it into a more appealing business within domestic outsourcing.

Below are some countries that have the potential to become good property investments:

Australia

The Australian economic recovery is ahead of most other countries, based on some a full year ahead. Whereas in much of Europe unemployment is on the rise, around australia it is falling, meaning more potential customers. The population can also be rising and Australia is definitely a well known spot to live. The Asian population in the united states keeps growing with Asian’s generally getting wealthier, they are likely to have more money to invest within the future years. House prices are rising again with a boom expected over the next 3 years. The main cities seem to be the very best buys, with Adelaide and Melbourne the pick of the bunch.

Brazil

Brazil has a fast growing economy, which coupled with a shortage of top quality homes means a likely increase in prices. Because of the lack of quality housing, Brazil could also be a prime place for property developers looking to build homes. The very best places to purchase for investment are the beautiful beach locations, where prices could treble within the next ten years.

Croatia

This really is somewhere where lots of foreign investors have been buying up property in recent years. There are some lovely seaside areas which are in high demand. Croatia has long been talked about being an area for growth and to an extent a lot of the development has already happened. It is not over yet though, and there continue to be opportunities in the united states.

Germany

Germany has a low home ownership rate, the lowest in Europe. There’s two benefits of this; prices are less high as the rest of Europe so that as so many rent, buying to let is a good option. Certain regulations are going to change that will make it easier for German’s to buy meaning a likely boom.

Ireland

Because of its financial problems, Ireland might not seem the most obvious place to invest your money at this time. However, this may mean lower asking prices. And also the Irish like to own their houses, with one of the highest ownership rates in Europe. This means that when the finances of the country improve you will see a surge sought after.

Malaysia

Malaysia could be the next Singapore with it becoming more of the business hub. With more business comes the interest in housing. Getting into in front of this (or perhaps in its early stages) provides the maximum possibility of growth. Many going to Malaysia to dedicate yourself a short while will be looking to rent property, meaning the buy to allow opportunities are good, while the numbers looking to purchase are likely to grow.

Norway

Unlike a lot of Europe the Norwegian housing market has managed to move on from the low point. There are getting to be strong signs that prices are beginning to rise again so investing now, before the major rises in prices, could be the best time. The economy hasn’t suffered around in most countries and the average person is better placed to buy.

Poland

Its entrance into the EU has made Poland a far more attractive proposition. Business is growing rapidly with more international businesses beginning to utilize it as a base. Jobs goes with this and homes will be in demand, meaning an increase in prices. It is still relatively cheap to purchase.

Portugal

Despite as being a popular holiday place to go for the rest of Europe living costs in Portugal are extremely low. It is then a stylish option for people who would consider living there. Despite its economic problems, property in Portugal continues to be rising in price. So when the economy picks up a boom is possible. With regards to the quantity of other Europeans moving there exactly the same might happen in Portugal as has in Spain recently.

Romania

In many ways Romania is within a similar position to Poland, with joining the EU a help. House prices are inexpensive at present and some have predicted Romania could be the best property investment (in terms of the percentage increase) in Europe.

South Africa

Nigeria is becoming a far more popular place to live. While there is still poverty, the numbers in poverty are falling. In the long run, therefore, more people will want to buy. It is important to buy in the right area, something which is important anywhere but in particular in Nigeria.

Spain

Spain has seen a boom in recent times, however it is probably not over yet. The numbers looking to purchase continues to be increasing (especially amongst foreigners). It’ll cost you more to buy it did a few years ago, but it could be a wise investment. The best thing to look for is seaside areas which are still relatively untouched.

And something To appear OUT FOR…..

Kuwait

Kuwait is among the growing states from the Middle East. It might not have grown towards the extent of Dubai however it has potential. The problem for investors is the fact that non-Kuwaiti’s aren’t currently allowed to buy in the united states. But that doesn’t mean this is the situation forever. If the rules change, get in quick. There will be a fast boom. Because buying rentals are closed to foreigners prices are low. So, if and when it is allowed, buying immediately may be the best property investment in the world.

What’s Off-shoring?

Think the computer you’re using has suddenly crashed. You call the client service hotline since you need help fixing it. The person who answers your phone call is very polite and professional and helps you correct the issue right away. You’re happy because the computer is working again. But exactly what do you know about the person who just helped to fix it for you personally? When you dialed the service hotline, the telephone number looked like it called somewhere in your house country. But was the one who just helped you somewhere near by, or half-way all over the world?

Because of the rapid technological advances which make global communication much easier, either scenario is possible. Companies today face many options about where to hire the employees that they must serve their clients. When a company in one country hires workers in another country to do select business functions – like providing customer support to repair a broken computer – it is really an example of off-shoring. Off-shoring is now an ever more common business practice that affects both developed and developing countries.

Off-shoring vs. Outsourcing

To do business, companies need employees to perform labor, or work made by people. A business may hire its own employees directly, or it may use contracts to secure the laborers (workers) it needs from elsewhere.

The worldwide labor market is made up of all of the buyers (companies) and sellers (workers) at work all over the world. Companies who want to hire laborers in return for payment represent labor demand. Workers who wish to offer their skills in exchange for payment represent labor supply.

When a company contracts the labor it needs from another company found in the same country, this is called outsourcing. When a company chooses to contract the workers it requires from a location overseas, this is called off-shoring (possibly because, oftentimes, the employees are literally located across a sea, away from the first country’s shores.)

In the two cases, jobs might be lost if companies layoff workers in favor of the new contract arrangement. With outsourcing, these losses are offset by the gains of workers locating the new jobs elsewhere within the same country. With off-shoring, these jobs are lost to workers overseas.

Typically, the businesses that engage in off-shoring are located in developed, high-wage countries, as the contracted workers are located in the less developed, low-wage countries.

Types of off-shoring

Whenever we refer to off-shoring, we are talking about moving 2 kinds of jobs – manufacturing or services – to a different location overseas.

A business in the manufacturing sector produces goods, or products, as its main income source. To take part in production off-shoring, this company will have to setup manufacturing equipment inside a new foreign destination, or hire a foreign company to replicate its existing equipment and processes. An example of production off-shoring is a company located in Europe manufacturing its products (for example, clothes, toys, or electronics goods) in China and finally selling these goods in markets all over the world.

A company in the services sector earns income in the services, or even the performance of economic activities (like repairing some type of computer), that it is employees offer to customers. To take part in services off-shoring, this company would simply hire workers internationally to do this work, or contract an overseas company to handle these foreign workers.

It should also be noted that companies within the manufacturing sector may employ workers operating occupations (such as computer programmers and accountants). Thus, services off-shoring can reduce across both the services and manufacturing sectors.

Why do occurring?

There are five logic behind why off-shoring has become a growing popular way for companies to work.

Cost savings. There can be large differences between the wages paid to workers in developed and in developing countries. A lot of companies seek to take advantage of this wage gap, the difference between the higher wage and the lower wage, to reduce their cost of producing products or delivering services. For instance, hiring a software developer in the US will cost a business about US $60 an hour or so. It could cost the organization only US $6 an hour to hire a staff in India to perform exactly the same task.

A sizable global labor supply. Labor supply refers collectively to workers who’re available for and able to work. Many countries within the third world offer a labor supply of highly educated and highly-skilled workers. These workers can be simply educated to perform the tasks that foreign companies require.

24-hours-a-day-7-days-a-week business operations. By taking benefit of variations in time zone around the world, companies can operate around the clock. For instance, when a team of telemarketers finishes its shift in a company in the US, a team located overseas could be ready to start their workday. (When it is 8:00pm in New York City, it is 8:00am in Singapore.) This enables continuous operation.

Access to overseas markets. Firms that want to sell their items or services in foreign markets may choose to produce these products or services in the foreign country. By doing so, they can reach customers more quickly and efficiently than if they required to export, or transfer out, the goods and services from their real estate market.

Technological possibility. Many services sector jobs (such computer programmers, radiology technicians, and computer support specialists, telemarketers, as well as tax preparers) don’t require an actual presence within the hiring company. The job can be performed remotely and delivered via technology (for instance, via the Internet or telephone).

Where is it occurring?

Based on the McKinsey Global Group, US businesses account for about 70 percent of the total off-shore labor demand. (Europe and Japan take into account the rest of the 30 %.) Data in the US Department of Commerce implies that US imports, or purchases of services (meaning the hiring of overseas service workers) grew from $21.2 billion in 1997 to $37.5 billion in 2002. This increase around 80 percent arrives primarily towards the increased popularity of off-shoring computer and information systems services.

The position of the labor supply hired by global businesses depends on the specific service that is involved. The interest in answering services company and telemarketing services is predominantly supplied by English-speaking countries like Australia, South Africa, the Philippines, Canada, India, Ireland and Israel. A common language helps to ensure top quality of service.

Other service activities which do not require customer interaction or English language skills (for example computer programming, graphic design, and data entry) in many cases are performed in non-English speaking countries like Mexico, China, Russia and several Eastern Countries in europe.

What are the benefits and challenges?

There’s a lot of debate and concern with off-shoring in civilized world. Opponents argue that off-shoring represents a threat to high-paid, high-skilled jobs in the developed world. Losing jobs could make a country less in a position to compete in the global economy. Workers within the developed world who have lost their jobs due to off-shoring will have to be re-educated and re-trained to consider advantage of new employment opportunities. If the does not happen, they might experience a lesser quality lifestyle, or quality of life.

Both global companies and developing countries are the beneficiaries of off-shoring. Global companies benefit by reduction of their price of conducting business since they’re able to pay less for the labor that they need. They may pass on some of this savings to consumers through lower prices. Developing countries benefit by the rise in employment of the populations. More money for their citizens may lead to higher levels of economic growth for the nation.