The Digital Transformation Of MSMEs: Dominance Of Mobile Payments & Digital Wallets

The India Council for Research on International Economic Relations (ICRIER) released its annual survey results on Monday, underscoring the significant advantages for micro, small, and medium enterprises (MSMEs) integrating with e-commerce platforms.

Supported by

The India Council for Research on International Economic Relations (ICRIER) released its annual survey results on Monday, underscoring the significant advantages for micro, small, and medium enterprises (MSMEs) integrating with e-commerce platforms. According to the report, integrated MSMEs reported higher turnovers and profitability compared to non-integrated counterparts, with digital wallets and mobile payments emerging as the preferred mode of transaction for nearly 69% of the surveyed businesses.

The survey, conducted between November 4, 2022, and January 20, 2023, encompassed 2,007 MSMEs across various product categories, including sports goods, toys, processed and preserved food products, apparel, furniture, and handicraft items. Notably, over 85% of the integrated enterprises experienced an upsurge in total sales and profit margins post-integration, with a substantial proportion reporting a growth rate of up to 30%. Approximately 14% of the integrated firms indicated the addition of new employees to their workforce.

While acknowledging the current limited share of online sales in total revenue compared to traditional sales channels, ICRIER emphasized the substantial potential for MSMEs to augment their online presence and enhance digital sales.

Among the challenges highlighted by the surveyed MSMEs, accessing markets, customer retention, and effective product marketing emerged as the key obstacles faced by these enterprises. The report stressed the need for coordinated efforts between the central and state governments, emphasizing the significance of a comprehensive MSME policy that consolidates policy incentives and programs.

Addressing the crucial need for increased awareness about available incentives and programs, the survey participants emphasized the role of government authorities at all levels in promoting a better understanding of the support measures accessible to MSMEs.

In addition to market access challenges, MSMEs also voiced concerns regarding physical infrastructure limitations, access to credit and skilled labor, and delayed payment issues. The survey further revealed a positive correlation between an export-oriented focus and the integration of MSMEs with e-commerce platforms, highlighting the growing relevance of e-commerce orientation in business strategies.

The findings of the ICRIER survey shed light on the transformative potential of e-commerce integration for MSMEs, pointing to the importance of digital adaptation and strategic policy interventions to foster the growth of these vital economic contributors.

Also Read: Global Urgency: Incorporating Fossil Fuel Phase-Out Into UN Global Stocktake Agenda

 

#PoweredByYou We bring you news and stories that are worth your attention! Stories that are relevant, reliable, contextual and unbiased. If you read us, watch us, and like what we do, then show us some love! Good journalism is expensive to produce and we have come this far only with your support. Keep encouraging independent media organisations and independent journalists. We always want to remain answerable to you and not to anyone else.

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured

Amplified by

ITC Sunfeast - Mom's Magic

In a Season of Promotions, Sunfeast Mom’s Magic Shines with Purpose-Driven Will of Change Campaign

Amplified by

Mahindra

Nation Builders 2024 – Mahindra:  Forging a Resilient Future, Anchoring National Development

Recent Stories

Project Sankalp: The Groundbreaking Initiative by Dr. Sanjivini Sharma in Kanpur to Empower Women and Tackle Fabric Waste

The Economic Implications of a 25% Tariff on Mexico and Canada

Did Italy Really Transfer Migrants to the Vatican? The Truth Unveiled

Contributors

Writer : 
Editor : 
Creatives :