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Structured support to MSMEs can pave way for business growth
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IANS | 28 Jun, 2022
Micro, Small and Medium Enterprises (MSMEs) are the backbone of Indias socio-economic development.
With
63 million MSMEs creating 111 million jobs in India, the sector is the
second largest employment creator and a significant contributor to the
country's Gross Domestic Products (GDP).
But when the pandemic
toppled the entire Indian economy, the sector was adversely affected
with a substantial 8.3 per cent decline in the growth rate. As the
sector is on the road to recovery post-pandemic, digitization-induced
structured support to MSMEs is essential to expansion of the business in
the coming years.
Keeping the same in view, the global
not-for-profit Wadhwani Foundation and its SME-led initiative, Wadhwani
Advantage, on the occasion of International MSME day said that small
businesses need to adapt to new market dynamics, be it in terms of
confidence in their product lines or maintaining a competitive pricing
to grow and flourish.
As the access to cost-effective finance is
mainly digital, it is essential for SMEs to pick up digital skills to
turn their business profitable. Without digitisation, the growth of the
sector in the future seems difficult. Upskilling and reskilling the
workforce in the sector will provide access to broader sets of suppliers
and customers, better payment systems, and broader market visibility.
All
these factors will allow them to scale the ladder of success while
eliminating manual inefficiencies. At present there is also a need for
micro-enterprises to mature into small enterprises and the small into
mid-size SMEs.
Speaking on the occasion Sanjay Shah, Chief
Operating Officer, India/SE Asia, Wadhwani Foundation said: "Structured
support to MSMEs in post-pandemic times will largely be driven by their
adoption of digitization, leading to larger collaborative ecosystems,
broader sets of suppliers and customers, and better payment systems that
fast become the path for business growth."
"The Wadhwani
Advantage initiative is working on supporting small and medium
enterprises (SMEs) through a growth focus program for larger SMEs and a
DIY (Do-it-Yourself) program to scale-up small SMEs. Both these programs
will be augmented with virtual helpdesk support for SMEs. In addition,
we are also launching a Wadhwani Advantage community platform that is
meant to provide an SME Social Network for peer-to-peer networking and
connects to advisors and customers," Shah added.
The MSME sector
faces several challenges which delays its growth like inadequate
infrastructure, lack of access to capital, low productivity, and dearth
of innovation. All these factors make it difficult for approximately 99
per cent of the MSMEs to grow.
As a result they remain micro in their life cycle despite having great potential to excel in the sector.
Discussing
the importance of the MSME sector and its contribution in the Indian
economy, Samir Sathe, Executive VP, Wadhwani Advantage at Wadhwani
Foundation said: "MSMEs are at an inflection point in India and carry
the unmet potential to grow 2x-10x. We at Wadhwani Foundation remain
committed to accelerating their growth with our unique model of external
curated advisor-led consulting, PMO and subsidized funding support,
productized IP, and a proposed community platform that will enable SMEs
to access their ecosystem, thereby facilitating a systemwide change."
As
per Assocham-Crisil, India's MSME sector is expected to rebound with a
15 per cent to 17 per cent growth in revenues for the financial year
ending 2022. Looking at the data, it is imperative to support the sector
for strong and steadfast growth.
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