By Sumit Bhatia
Small businesses are the backbone of India’s economy. They create jobs, drive innovation, and form the core of global supply chains. Yet, many of these businesses struggle to grow due to outdated systems and limited resources.
The Challenges Faced by MSMEs
Limited transparency, fragmented processes, and inefficient data management are just a few of the challenges that MSMEs face. These challenges make it difficult for them to compete in the global market. Moreover, MSMEs often lack the resources and expertise to adopt new technologies, making it even harder for them to stay ahead of the curve.
A Glimmer of Hope
However, there is a glimmer of hope. Technology can empower MSMEs and help them thrive. Countries like China, Japan, and the US have shown that with the right tools and partnerships, MSMEs can compete with the best in the world.
Lessons from Around the World
China’s digital giant, Alibaba, has empowered MSMEs by giving them access to digital tools, global marketplaces, and data analytics. Alibaba’s platform has enabled small businesses to reach a global audience, increasing their sales and revenue. Similarly, Japan’s keiretsu model has shown that collaboration between large corporations and MSMEs can be beneficial for both parties. The US has also shown that tech giants can work with MSMEs to provide them with the tools they need to succeed.
India’s Opportunity
India has the opportunity to empower its MSMEs and help them thrive. Big Indian companies like Infosys, Tata Consultancy Services, and Reliance Industries have already embraced AI, blockchain, and cloud technologies. The challenge now is to bring MSMEs into this growth story. By doing so, India can unlock the potential of its small businesses and create a more inclusive and sustainable economy.
The Role of Large Corporations
Large corporations have a critical role to play in empowering MSMEs. They can provide MSMEs with access to technology, mentorship, and markets. For instance, Tata’s use of blockchain in tracking diamonds could be adapted for MSMEs in textiles, food processing, or logistics, enhancing transparency and trust. Similarly, companies like Reliance Jio can help smaller businesses digitize their operations, just as Tesla and Nvidia have done with their suppliers.
The Government’s Role
The government also has a critical role to play in empowering MSMEs. Policies that promote digitization and subsidize tech adoption can make a world of difference. Expanding the Production Linked Incentive (PLI) scheme to reward supply chain innovation in MSMEs would be a great start. The government can also provide MSMEs with access to funding, mentorship, and markets.
The Way Forward
If India wants its MSMEs to succeed, everyone has a role to play. The government, large corporations, and MSMEs themselves must work together to create an ecosystem that supports the growth and development of small businesses. By doing so, India can unlock the potential of its MSMEs and create a more inclusive and sustainable economy.
Empowering India’s MSMEs is not just about helping small businesses; it’s about unlocking the potential of an entire economy. With the right tools, partnerships, and policies, India’s small businesses can compete with the best in the world. It’s time for India to seize this opportunity and create a brighter future for its MSMEs.
(The author is Sumit Bhatia, Co Founder Aksum Trademart Pvt Ltd., and the views expressed in this article are his own)
