B2B eCommerce – Unlocking the potential of thousands of MSMEs in India

ISSUE 132
02 / 03 / 2021

B2B eCommerce – Unlocking the potential of thousands of MSMEs in India

Contributing over 29% of India’s GDP, over 90 lakhs-plus registered MSMEs employ nearly 11 crore people in the country. Since these enterprises contribute to 48% of the country’s exports, there is a renewed focus on them to limit imports and dependence on other countries. The Government has taken several strategic measures in this direction including the Atmanirbhar Bharat campaign. The theme got further support in the Union Budget 2021 that emphasizes upon nurturing the entrepreneurial ecosystem by offering greater incentives for existing and upcoming start-ups, simplifying compliance norms for businesses, and increasing public capital expenditure across sectors. These measures can unlock the true potential of MSMEs and make them the crusader of India’s economic recovery. Reports show that in FY 2020, there has been more than 18 percent growth in MSME establishments. On one hand, the pandemic has brought back focus on smaller businesses but on the other hand, it has also created major disruptions in traditional modes of running a business. Some of the challenges that MSMEs are faced with today are working capital crunch, supply chain bottlenecks, technological glitches, elaborate GST compliance framework, limited customer appetite for spending and many more. The answer to some of these challenges lies in MSMEs embracing digital solutions for managing various aspects of their business. As businesses evolve and adapt to newer ways of operating, procurement is one such function that can go full digital resulting in increased efficiency and reduced costs. India being a mobile first economy, this switch to e-procurement can help MSMEs, even the ones operating out of Tier II & III markets, access products from suppliers of different regions in a more convenient manner.

https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/b2b-ecommerce-unlocking-the-potential-of-thousands-of-msmes-in-india/81205035

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