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.

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2023-10-19 05:48:15.0

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