Diminishing Musharkah

 

Diminishing Musyarakah

Diminishing musyarakah or musyarakah mutanaiqisah is another form of musyarakah which was developed recently by the scholars. It is a musyarakah in which the Islamic bank agrees to transfer gradually to the other partner its (the Islamic bank’s) share in the musyarakah, so that the Islamic bank’s share declines and the other partner’s share increases until the latter becomes the sole proprietor of the venture. According to this concept, a financier and his client participate either in the joint ownership of a property or an equipment, or in a joint commercial enterprise. The share of the financier is further divided into a number of units and it is understood that the client will purchase the units of the share of the financier one by one periodically, thus increasing his own share until all the units of the financier are purchased by him so as to make him the sole owner of the property or the commercial enterprise.

Diminishing musyarakah has taken different forms in different transactions. Some examples are given below:

A. It has been used mostly in house financing. The client wants to purchase a house for which he does not have adequate funds. He approaches the financier who agrees to participate with him in purchasing the required house. 20 per cent of the price is paid by the client and 80 per cent of the price by the financier. Thus the financier owns 80 per cent of the house while the client owns 20 per cent. After purchasing the property jointly, the client uses the house for his residential requirement and pays rent to the joint owner for using their ownership in the property.

At the same time, the share of the financier is further divided in eight equal units, each unit representing 10 per cent ownership of the house. The client promises to the financier that he will purchase one unit after three months. Accordingly, after the first term of three months, he purchases one unit of the share of the financier by paying 1/10th of the price of the house.

It reduces the share of the financier from 80 per cent to 70 per cent. Hence, the rent payable to the financier is also reduced to that extent. At the end of the second term, he purchases another unit increasing his share in the property to 40 per cent and reducing the share of the financier to 60 per cent and consequently reducing the rent by that proportion.

This process goes on in the same fashion until after the end of two years, the client purchases the whole share of the financier reducing the share of the financier to ‘zero’ and increasing his own share to 100 per cent. This arrangement, among other forms of diminishing partnership, allows the financier to claim rent according to his proportion of ownership in the property and at the same time allows him periodical returns of a part of his principal through purchases of the units of his share. B. ‘A’ wants to purchase a taxi to use it for offering transport services to passengers and to earn income through fares received from them, but he is short of funds. ‘B’ agrees to participate in the purchase of the taxi. Therefore, both of them purchase a taxi jointly; 80 per cent of the price is paid by ‘B’ and 20 per cent is paid by ‘A’. After the taxi is purchased, it is employed to provide transport the passengers whereby the net income of 1000 ringgit is earned on a daily basis. Since ‘B’ has 80 per cent share in the taxi it is agreed that 80 per cent of the fare will be given to him and the remaining 20 per cent will be retained by ‘A’ who has a 20 per cent share in the taxi. It means that 800 ringgit is earned by ‘B’ and 200 ringgit by ‘A’ on a daily basis. At the same time the share of ‘B’ is further divided into eight units. After three months ‘A’ purchases one unit from the share of ‘B’. Consequently the share of ‘B’ is reduced to 70 per cent and the share of ‘A’ is increased to 30 per cent, i.e. from that date ‘A’ will be entitled to 300 ringgit from the daily income of the taxi and ‘B’ will earn 700 ringgit. This process will go on until after the expiry of two years, whereby the whole taxi will be owned by ‘A’ and ‘B’ will take back his original investment along with income distributed to him as aforesaid.

Both the Buyer and the Bank will each contribute towards the purchase of the home. For example, the Bank may contribute 90% and the Buyer 10% of the purchase price. Over a period of up to 25 years, the Buyer will make monthly purchase installments through which the Bank will sell its share (90%) of the home to buyer. With each payment installment, the Bank's share in the property diminishes while the Buyer’s share correspondingly increases. While the purchase installments are being made, the Bank will charge the Buyer rent for the use of its share of the property, the rent being calculated according to the respective number of shares owned.

Many see this as little different from a conventional mortgage, because, under both methods, monthly payments are made which may be similar in amount. However, unlike a conventional mortgage, where money is lent to help with the purchase of a property, the Bank makes its profit through the property's physical use via buyer occupation as a tenant. This is one of the fundamentals of Islamic finance whereby you can charge for the use of something physical, like a property, but you cannot charge for the use of money, because this is interest. The relationship between buyer and the Bank is also quite different.

Islamic Leasing Finance Structure - Ijara

 Ijara Financing

Ijarah Financing                                   

Ijarah has huge potential as a financing mode for Islamic banks. It can be used for meeting the needs of retail, corporate and the public sectors and can also play a crucial role in promoting Islamic finance industry. Leasing is an attractive mode of investment for Islamic banks for the following reasons:

a) Assets acquired under these contracts are usually of high quality, marketable, maintain their market value well above book value, are movable and are easily disposable for cash in case of default.

b) Because of the good quality of the asset, the bank, as lessor, does not have to depend so much on the creditworthiness of the lessee, since it always has the recourse of selling the asset in case of default.

c) It is possible for the banks to get variable and floating return on long term investments.

Ijarah can be used directly for plants a machinery, autos, housing and consumer durables and indirectly for sukuk issues by the corporate and the government sectors. It can be used to develop different contracts and sukuk that may suit different purposes of issuers and the sukuk holders. Public and private sector corporations can use the securitisation on the basis of ijarah as alternative tool to interest based borrowing provided they have durable and useable assets. Ijarah is conducive to the formation of fixed assets and medium and long-term investments in an economy. Ijarah Sukuk will be discussed in detail in the Module on Treasury and Capital Market Operations dealing with Islamic Financial Markets.

Leasing and investment

As an asset-based lending is a permitted form of debt-financing in Islam, ijarah provides an alternative to interest-based investment in assets for the Islamic banks. The goods in which the investment is to be made are not purchased by the actual user, but by the bank or a finance company, and are made available to the contracting partner for commercial use subject to payment of a lease rental which is the investment return. This form of financing offers Islamic banks various benefits, such as:

• Secured investment, thus reducing credit risks. Because of the good quality of the asset, the bank does not have to depend so much on the creditworthiness of the lessee client, since it always has the recourse of selling the asset in case of default.

• Assets acquired are usually of high quality, marketable, maintain their market value well above the book value, are moveable and are easily disposable for cash in case of default.

• Although it is a longer-term financing instrument, a leasing contract can be reviewed periodically. The financing party thus not tied down to a fixed return that may not be in its investment goals. The rent can be tied to any type of index agreed to.

• Clear basis of calculation returns over the term of the lease period

• Scope for new investments

• Tax benefits for both parties

Islamic banks are able to offer leasing certificates to their depositor clients as specific investment certificates as a form of declining equity. Lease payments include two elements: capital repayments and profit. If both of these are refunded to the certificate holder, net of bank costs, the depositor client recoups part of the capital (the client’s deposit) as the lease gets closer to the end of its term. But it is possible to design certificates which pay the holder dividends only; so that the bank can reinvest the incoming capital repayments in other lease contracts.

 

Ijarah Muntahia-bi-tamleek (Ijarah wal Iqtina)

Ijarah Munahia-bi-tamleek (Ijarah-wa-iktana) is variation of the leasing method and similar to ijarah except that, included in the contract, is a promise from the lessee to buy the leased asset at a pre-agreed price; rentals paid during the lease term constitute part of the purchase price and the final sale being for a token sum. Ijarah shares many common features with lease financing and operating lease / hirepurchase arrangements. It involves a lessor (usually a financial institution) purchasing an asset and renting it to a lessee for a specific time period at an agreed rental and at the end of the lease period transferring the ownership of the asset to the lessee.

Islamic banks are using Ijarah Muntahia-bi-tamleek as an alternative to a hire purchase and finance lease. It is an arrangement in which leasing is the real and the major contract that is subject to all rules of an ordinary operating ijarah contract where the standard Shari´ah principles of lease, its terms and essential prerequisites of the contract have to be observed. The transfer of the asset ownership to the lessee at the end of the lease term is kept separate. It does not comprise two contracts in one bargain; rather, the real bargain is only one whereby the lessor leases the asset and fixes the rentals in such a way that during the lease period the repayment of the cost of the asset and the rental for leasing the asset are received.

Both parties agree on this nature of the transaction; and the other part of the deal is only a unilateral promise not binding on the promissee and as such it is not a transaction until actually entered into by the parties. Further, this arrangement is fair and based on justice for both the parties in that the lessee, who has paid the cost along with the rentals, is able to get ownership title of the asset at the end of the lease period, while the lessor recovers cost of the leased asset and also the profit in the form of rentals. However, the lessee is under an obligation to buy the asset at the end of the lease term.

As owner of the asset, the bank should take out takaful cover to insure the leased assets. Islamic banks normally include the takaful expenses in acquisition cost of the asset for determining the rental. Shari´ah scholars allow this on the ground that rentals in leases are subject to mutual consent of the two parties and if the lessee agrees to the amount of rental, the contract would be acceptable from a Shari´ah perspective. As regards the insurable interest, it rightly belongs to the bank as lessor.

However, the AAOIFI recommends that in case the transfer of ownership becomes impossible without any cause attributable to the lessee (the client), the lessee must be protected from the loss by the lessor paying to the lessee (client) the difference between the rent received as per the lease agreement and the market rentals of such assets.

If the asset is destroyed, and there is proof for lack of observance of the conditions of the takaful policy that bars the bank as lessor from recovery of an insurance claim from the takaful company, the lessee client is held liable. In the absence of any fault or negligence on the part of the lessee client, the bank bears all responsibility for damage to or loss of the leased asset. If the claim paid by the takaful company is less than the loss incurred by Islamic bank, the uncovered loss cannot be charged to the lessee and the bank would bear the loss.

In this way, Islamic banks and financial institution have tried to transform the conventional lease structure to make it Shari´ah compliant. The arrangement, broadly speaking, comprises two contracts entered into at different times: One contract is an ordinary lease contract, where the Shari´ah principles of defining the asset to be leased, its terms and essential prerequisites of contracts are observed. The lessee pays, in addition to the rental, a sum which goes towards buying the leased property.

The other subsequent contract is a contract for gift or sale of the leased asset at the end of the lease period and is independent of the earlier lease contract. Although the rentals to be stipulated in the lease agreements have to be clearly known and fixed, but the actual and net rental income of the banks might not be fixed and predetermined. The Shari´ah principle is that risk cannot be separated from ownership; hence, as the leased asset remains in bank’s ownership, the bank must remain liable for the asset. Furthermore, the lease and sale transactions are contracts of two different nature; they must be kept separate and independent of each other to avoid the prohibition of two inter-dependent / conditional contracts that also has the connotation of a sale and buy back arrangement. If the above two aspects are taken care of, the Islamic banks can adopt any procedure for leasing the assets, mitigating the risks and transferring ownership to the lessee through any of the approved methods.

 

Economic Cost of Hate

Economic Cost of Hate

India has seen gradual increase of hate against its Muslim Minority. This gradual increase of last 6 years has suddenly spiked in last 8 months, which is noticed by global human rights groups and Governments.

The countries and international organizations has started discussions and so are governments. This discussion has now coming to the point it will start damaging India’s Economy and will have serious implications.

US Congress has already issued statement and so is USCIRF and Congress Members, and Bernie Sanders has raised serious questions on India’s handling of Racism, Hate and Violence against its minorities.

UK Parliament has already discussed the matter.

EU Parliament will take up the issue once opened. It has 3 resolutions on the matter.  

OIC – Organization of Islamic Cooperation is world’s second biggest group of countries has already issued statements and requested government of India, to protect the life and properties of Muslims.

GCC – Gulf Cooperative Council is world’s smallest but richest group with substantial exposure and relations with India and with very good say across the worlds, is started serious talking about Islamophobia and Hate in India. This will have serious economic impact.

US, Europe and UK, number of Muslim countries has echoed their concern for the Hate Crime and Islamophobia in India.

 

Notably among them are Turkey, Iran, Malaysia, Indonesia has come out with their statements.

The real question is How is the cost or economic impact of all this hate mongering.

I will start with GCC.

1.      GCC hosts 9 million Indian – This number can vary between 9 million and 12 million depending upon how you view or calculate.

2.      The total of 79 billion USD, 55 Billion comes from GCC countries or 70%, more importantly India is single largest recipient of foreign remittances.

Among countries, the top remittance recipients were India with $79 billion, followed by China ($67 billion), Mexico ($36 billion), the Philippines ($34 billion), and Egypt ($29 billion). World Bank

3.      More than 80% Indian working in GCC are low wage earners or labor which are easy to replace.

4.      India’s Export – Fresh Vegetables and Meat

5.      GCC is single biggest market for Fresh Vegetables, and Fruits, Agriculture Products.

6.      GCC is single biggest market for Fresh Meat Exports – Caracas – Goat and Sheep

7.      GCC is single biggest market for Beef Exports.

8.      GCC is single biggest trading partner for Agro Commodities.

GCC countries account for 15 percent of India’s total import and 12 percent of the country’s total export basket in value terms.

Among the GCC countries, UAE accounted for the major chunk of India’s exports and imports with $30.08 billion and $29.77 billion respectively in FY19.

 

This is despite a negative growth in both imports and exports of gems and jewelry, a major item in the product basket between India and UAE.  India’s imports of gems and jewelry from UAE have seen a decline of 13 percent, while its exports of these products to UAE have fallen by 3 percent in FY19 over the previous fiscal.

UAE accounts for 9 percent of India’s total export basket and 5.80 percent of India’s import basket by value.

UAE is the major destination for India’s jewelry exports, accounting for about 80 percent of India’s exports.

Energy, Expatriates and Economy

Indian National make up the Gulf states’ largest expatriate community, with an estimated 9.6 million Indian nationals living and working in the region; especially in Saudi Arabia (2.8 million) and the UAE (2.6 million.

The GCC is India’s largest regional-bloc trading partner, which accounted for $104 billion of trade in 2017–18, nearly a 7 per cent increase from $97 billion the previous year. This is higher than both India–ASEAN trade ($81 billion) and India–EU trade ($102 billion) in 2017-18. Two of India’s top five trading partners, the UAE and Saudi Arabia, are from the Gulf. The GCC also provided over $55 billion in foreign-exchange remittances from Indian expatriates in 2017, accounting for over 70 per cent of India’s total.

The total bilateral trade between the GCC and India was estimated at US$121.34 billion ($203 billion) in 2018-19. The UAE is estimated to be India’s third-largest partner with trade in 2018-19 estimated at nearly US$60 billion ($100 billion), while Saudi Arabia is India’s fourth-largest trading partner, with trade in 2018-19 estimated at over US$34billion ($57 billion).

They aim to increase bilateral trade by 60 per cent over the next five years and have set a target of $75 billion for UAE investments into India’s infrastructure development, spanning ports, airports, highways and construction, as well as petrochemical projects.

India expected to attract large-scale investment from the GCC to India, following the recent announcement of the development of a $44 billion oil refinery to be built by Abu Dhabi National Oil Company (ADNOC), Saudi Aramco and Indian counterparts.
The announcement comes a few months after Emirates Group announced a $4.23 billion (INR300 billion) aircraft maintenance, repair and overhaul (MRO) project in Andhra Pradesh in February this year.
Aramco is also in talks with Reliance Industries Limited  to purchase a 20 per cent stake in its oil to chemical business, which is estimated at US$75 billion ($125.5 billion).

The GCC has also invested in developing India’s energy infrastructure. In 2019, the Saudi Ambassador to India stated that Riyadh wished to invest US$100 billion ($166 billion) in India

Foreign Direct Investment (FDI) in India increased to $61.96 billion in 2017-18, according to Indian Government’s Department of Industrial Policy and Promotion (DIPP). Total FDI reached $ 61.96 billion in the last four years, it said.

India: An investment gateway

Yusuffali predicts that an investment to the tune of $150 billion will flow into retail, aviation, tourism and manufacturing sectors from Gulf countries.

This will have a mutual benefit for both the countries as India faces 30 per cent wastage in the Indian farm sector due to bottlenecks in storage, packaging and transportation, and investment by Saudi Arabia would benefit both the countries.

 

 

 

 

Why GCC Matters

And with an average GDP per capita of US $ 61,559 in terms of purchasing parity, most GCC nation rank in worlds top ten richest countries.

 

Indonesia and Malaysia account for 85% of the world's palm oil output while India is the biggest buyer of edible oil.

Indonesian crude palm oil has sold at a premium to Malaysian oil since India this month placed curbs on imports of refined palm oil.
The trade ministers of India and Indonesia, which want to more than double their bilateral trade to $50 billion by 2025, met in Davos on Thursday and agreed to fast-forward trade between them, one of the informed sources
An Indian government document, reviewed by Reuters, said that Indonesia had "informally agreed" to double the annual quota for Indian bovine meat exports to 200,000 tonnes.
Indian-Indonesian trade was worth $21.2 billion in the  2019.

Indonesia imported 94,500 tonnes of Indian buffalo meat worth $323 million in the 2018/19 fiscal year. It is the third biggest buyer of Indian buffalo meat after Vietnam and Malaysia.

India’s Tourism Sector

The Foreign Tourist Arrivals in India is small compared to global standards. The lack of enough and quality infrastructure is one reason, the culture and social environment is second factor.

The arrivals are divided as Foreign and NRI, we will discuss only Foreign Arrivals.

The single largest arrival is Bangladesh Nationals. Then come US and Europe. The Bangladesh alone constitute more than 20% of total arrivals, USA and Europe together constitute another 25%.  The remaining 55% is scattered over countries. North Africa, GCC and Malaysia together is above 10%. Other Muslim Countries has another 3% arrivals in India.

Tourism is one of very important employment sector for India. The present environment of hate will directly affect sentiments of Tourist and their arrivals. Not only the Muslims but all arrivals will be affected.

We see more than 50% reduction in Tourist arrivals from Muslim World to India. The NRI arrival will also be heavily affected because of Job loss.

The arrivals from USA and Europe will be affected by 15%, as sentiments go negative. This will affect India’s direct foreign currency income and employment.

 

Services Sector – India’s services sector is more dependent on USA and Europe. IT, ITES are mostly catered to developed world. In last few years, there is substantial growth and Opportunities are generated from GCC. This growth is steady and remain double the average growth of India’s services sector exports. This nascent sector will face challenge to survive in GCC, North Africa and Malaysia, Indonesia.

The Effect of Hate on FDI and PPP and other projects

As Result of Increase of Hate in India, India will see substantial losses in terms of financial loss. Remittance will be down by 30% or 17 Billion Dollar, direct commercial loss or loss of business will be 55 billion and overall Indian economy will be take hit of 1.5 percent.

 

The sentiment in GCC particularly and worldwide in general will be negatively impacted. The investors look for safety of their amount and social conditioning. Peace is most important to drive growth anywhere in the world. Without peace and harmony, it is impossible to find growth and development. Hate will not only drag down the growth of particular community but it will have drag down effect on everyone. These negative sentiments will persist for the long time. GCC human rights activist and global Human Rights activist particularly in EU and USA will have substantial impact on FDI in India.

 

Data Source - 

India Tourism Statistics 2019 Ministry of Tourism Government of India

Annual Report 2018 -2019 Department of Commerce Government of India

GCC Stat

World Bank Remittances Report

IMF Economic Review

Venture Art Economic Projections

 

Steve Cohen, Now A Venture Capitalist, Invests In Trading Start-up.

A venture capital fund seeded by Steve Cohen and his employees at Point72 Asset Management is putting up to $250 million into a new fund managed by the start-up Quantopian.

The start-up is a trading platform that uses crowdsourcing to create new algorithms for investing capital.

The deal, which involves a $2 million investment in the start-up, as well as a promise to trade up to a $250 million of Cohen's Point 72's company assets using its algorithms, is the first major public deal struck by Point72 Ventures.

Point72 Ventures is the private-company investing arm launched by Cohen and members of his team in May.

The company — which is separate from Cohen's personal venture capital company, Cohen Private Ventures — focuses on finding new technologies that cater to the financial-services industry.

"There's a tremendous amount of information in the world right now, and if you're a portfolio manager sitting there every day, trying to process all that, that is a huge challenge," said Matthew Granade, Point 72's head of market intelligence and one of the architects of the Quantopian investment.

"So we're really interested in people that are helping you crunch down the information, synthesize it better, help make you more efficient in absorbing it."

Granade, who is also a board member at Quantopian, told CNBC on Tuesday that Point72 traders would begin using the start-up's trading algorithms in the coming months, as soon as both firms could get the technological "piping set up."

Quantopian already has a roster of prominent early investors, including Bessemer Venture Partners, Khosla Partners, and Spark Capital. Founded about five years ago, it has attracted more than 85,000 members, a developer base that includes nuclear-lab researchers, data-company workers, and even some precocious teenagers.

The designers of algorithms who use its platform, referred to by Quantopian as "authors," receive royalties from the use of their models if they're successful at generating returns. But the fact that a money manager the likes of Cohen is putting money into the platform is regarded by Quantopian officials as a key new vote of support.

"Even just the beginning of the conversation was incredibly validating to us," Quantopian John Fawcett said in an interview Tuesday, "that we were on to something and focusing on a problem in the industry."

The problem, as he described it? "Finding talent."

Disclaimer: - Following article come from CNBC

Entrepreneur from Aurangabad - A startup story

Sachin Kate is the founder of Clear Car Rental and I had no clue about the magnitude of impact this 28 year old had created when he walked into our office at YourStory.in. Yes, Clear Car is just another car rental company in India but there are a few points that justify as to why he needs an ovation.

The man has a story to tell

Sachin Kate hails from the small city of Aurangabad in Maharashtra where the concept of starting up is pretty much alien (yes, setting up a shop is also starting up but we’re talking in conventional terms of starting up). The region where Sachin resided doesn’t have schooling available after grade 4 but Sachin’s parents were firm on providing him with all the needed education and hence sent him to a friends place in a nearby region from where a school was more accessible. Sachin started selling newspapers since money was always a challenge and luckily for him, he got a job of an office boy in 11th grade at a computer institute.

Always fascinated by computers, Sachin took advantage of the situation and progressed to become a computer instructor in one year. After 12th, Sachin shifted to Aurangabad for higher studies along with a part time job in a travel agency. “This job gave me my initial exposure in travel business. On a part time salary I started working full time because slowly I started getting access to computer and could show my computer skills,” says Sachin. He was pursuing his BSc. in computers and he had an inclination towards how SEO worked. This came in handy for the travel agency he was working for.

Gaining in confidence, Sachin tried moving out of his zone in terms of location but his family wasn’t very comfortable. He decided to come back and take up web development assignments. He focused on the travel and hotel segment and has developed more than 600 websites till now along with his team. This is how InfoGird and NetMantle had come into existence.

And then came in the big break.

Sachin was always associated with the travel and hospitality industry and was aware of the needs of the industry. “The technology was being developed for airlines, hotels booking etc., but last mile connectivity which is mostly road travel in tourism sector was in a way neglected,” says Sachin. And thus was launched Clear Car Rental in July 2010. This was the time when the Meru Radio cab service and a couple of others had settled in.

Clear Car Rental provides both local (packages for full day, half day and transfer) and outstation travel (packages for round trip, one way drop and multi city travels) solutions. CCR provide car rental services to 150+ cities within India and has a home grown team of about 100 that manages the operations.

And all this without a penny of funding

We’ve seen the car rental companies getting funded at will and the justification for the need of huge funds for a business like this. Surprisingly enough, Sachin has been able to scale the company to 150+ cities without raising a single penny of institutional funding. CCR holds inventory of 14000+ cars with a 1000+ vendors on board. Apart from the domestic, foreign tourists and corporates, OTAs like Makemytrip, Cox & Kings and Thomas Cook have also partnered with CCR. “We’ve focused a lot on Tier 2/3 cities. The average purchasing power has gone up and even people from smaller cities are hiring cabs now,” says Sachin. They have a strong share in the metros as well but they’re banking on the smaller cities for growth.

And building a company from Aurangabad

We’ve seen companies being built from small towns and this is yet another success story from a place you’d not expect a startup to scale from- Aurangabad. As always there are pros and cons,

Sachin believed in what he was doing and his grit to be successful opened up doors for him. Local newspapers have written about it and a blog post he wrote- “Aurangabad Calling” encouraged many youngsters who were studying outside to come back home and find employment.

A local hero in Aurangabad, Sachin Kate has been hidden from the bigger picture and we hope this post gives the man his due.

Website: Clear Car Rental

WHAT AND WHY??

In my previous article I have highlighted the importance of the Fashion Industry and E-Commerce. Today I will get in detail for what and why we need E-Commerce.

For any business to grow it must constantly reach new customers and communicate efficiently. If you have a physical storefront you’ve probably realized these two requirements for growth are not easily achieved.  Building an E-Commerce website allows a retail store to break-through the limitations a physical location gives, while increasing sales of its products.

E-Commerce is a term used for commercial transaction that takes place chastely through the internet. This transaction could be between a consumer and an online store, or even a trade to trade business transaction. 

No matter what is your corporate standard is, you should take a closer look at E-commerce as a way to build your business.E-Commerce provides an ability to purchase without any restraints. 

Businesses worldwide are racing to conquer the E-Comm technology. It have expanded over the last 10 years due to the increase the rate of consumers purchasing online.

For those small scale business providers or those who are passionate to build their own business and finds it difficult to set up a physical store may find it easier to Set up an online store with the help latest technology platforms for their start-ups. When implemented correctly, e-commerce website should have the following features:

1.  Large customer base

2.  Hassle free services

3.  Latest technology

4.  Always open 24* 365

5.  Shop on the go

6.  Free training

7.  Opportunity to connect

If you found this article worth reading then please step up and take time to build an E-Commerce platform for your business. It may not be as hard as you think it is, and it could have a huge positive impact on your business for years to come.