Category: industries

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Going digital for your Business


If you’re thinking that the online space is only for big or mid-sized companies, you might need to rethink again before you are sure of it next time. A variable increase in the number of traditional, small businesses is now adopting the digital way to a varying extent and for good reason.


Going digital should not be seen as a way to build an image but has several other leveraging advantages.
In today’s world, you will find yourself in the online space on a beneficial need. No matter what sort of business you do, the type of customers you handle, the model that you follow or create for you, what category of Business it comes under, you make it a necessity to mark your presence in the online world.


Choosing to establish a digital presence sure does have value in it. A quick google search would land you any business sure does have a mark on the digital space or in simpler terms have an online footprint.


Today even if you are having a hardware or a supplies business, you could say that even if not a giant, you do have an identification on the online space. With a simple receipt of money from accepting cards, UPI, or e-wallets which are something like mobile application-based payment, congratulations you have made good progress.


There is always scope for improvement similarly, if you are already into the digital world, there is still a possibility to expand the digital footprint to magnify your presence.


Digital trends impacting MSME


Increased number of small businesses moving online.


A recent study that was conducted indicated that 63% of MSMEs wanted to go digital but only 5% went in the real digital world. A majority of MSMEs reported positive responses to post moving into the digital world. One more study mentioned that businesses that opted for the digital way doubled their growth in a quicker span than their offline counterparts which is a seemingly big achievement. SO on the whole considering both the case study above it is evident that small businesses are continually moving towards digitization.


Adopting cloud technology


Several small businesses adopted cloud technology to improvise their way of working. This included solutions that help in password management, mailing lists, and handling customer relationships. This helps organizations achieve productivity and make a competitive achievement. This was agreed by a majority of MSMEs where the results were proven to be positive. The cloud-based technology solutions that were opted for by the organizations are affordable and could be tailored to suit any business scenario.


Encouragement from the Government to adopt a cloud strategy


To raise the contribution of MSMEs GDP to 50% in the next 5 years the Government has placed the adoption of cloud-based solutions as one of the priorities. !8 tool rooms have been set up to assist the MSMEs in the cloud-based solution adoption which is expected to be increased to over 150 training centers.


Understanding and adjusting to the millennials


In terms of the sheer number and purchase power, the millennials rule the online world. So to get your business on their radar the small businesses must adapt video content for promotion, influencer marketing, and usage of social media.


Power of social media and its dominance


In terms of reach, impact, and conversion to sales social media dominate the marketing strategy. Facebook and Instagram in particular are the key players to focus on.


Chatbots for customer service


Better customer service is the key to financial growth. Given limited resources, automating customer service and response to customer queries help in streamlining the process. The quicker the turnaround for a customer query the more you get to score in terms of valuable service and definitely, that paves way for word of mouth growth, which in turn means more number of customers and could be possible conversion to sales.

How can it serve to be a springboard to success?


Adopting digital methods or digitization is served to be a springboard and bring in exponential growth


A representative of business transformation


Adopting cloud-based solutions helps to streamline the operating process and helps in improving growth and productivity. The most powerful effect on Business would be from adopting digitization.


Versatile and dominant medium of business


High impact branding and communication in the form of text, audio, and video is possible and thereby bringing in unprecedented reach. Helps enable real-time two-way communication through dedicated brand platforms that help in driving interaction and engagement.


The ultimate path for sales


With e-commerce raising the curtain for the show of online shopping from the comfort of homes and at suitable times, the products are available at ease, and payments are also made hassle-free.


A deeper insight into above-sighted advantages is below.


Triggering business transformation


These cloud-based solutions are plug and play which in other words mean they can be tailored to suit your business needs. With Big- data analytics-enabled it helps access patterns and insights and enabled to choose business decisions accordingly. From manufacturing to supply chain to CRMs they are tailored accordingly.
Mailing Management – MS Outlook ,Gmail
Storage management – One drive and Google Drive,
Accounting software – Intuit QuickBooks Online,
CRM software – Apptivo
Though it requires time and effort to choose the best that suits your needs, the return on investment is exponential.


Versatile cost-effective medium


To reach out to prospects nationwide and worldwide is the best means. Another added advantage being the ability to effectively narrow down the target prospects based on purchase power, demography, and many such factors.
Online videos on Youtube, are a great way to capture the eyeballs and register your brand to the target audience.
A key performance metric is an engagement that decides the success rate. The prospects’ progress journey that lands on sales are the result every business looks out for. This can be achieved by content creating that is compelling and interactive enough to initiate engagement.


Sales enablement


An eCommerce platform could either be your own or can be chosen to be a part of eCommerce aggregator platforms like Amazon, Flipkart, Paytm, snapdeal, and Shopclues.


The deeper you go into digital, the number of benefits it would reap you. But the ultimate choice of what solutions you select should take your business to the next level. This should be the ultimate goal. The digital space has a lot of aspects to offer so choose wisely. If done appropriately, it can propel growth to greater heights. But bad customer experiences could get blown out of proportion so that needs to be taken care of.


Double or triple check before you dive into a digital initiative. So make wise choices and keep testing for loopholes that need attention. Investments into these solutions could be counted as risks, but if you have everything in place and confident about what lies ahead then definitely the results would overshadow the risks that you take.

Written as part of Blogchatter’s campaign #ECommerceInnovation. Read more posts in the campaign here.

COPYRIGHT NOTICE –
@Sindhu Vinod Narayan. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links used, provided that full and clear credit is given to Sindhu Vinod Narayan (Thatmadrasmom) with the right and specific direction to the original content.

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Role of MSME in Indian economy

The Government of India introduced Micro, Small and Medium Enterprises in agreement with the Micro, Small and Medium enterprises development act of 2006. Predominantly these enterprises engage in producing, manufacturing, processing, and preserving goods and commodities.


Also referred to as the backbone of the country next to agriculture. They play a dominant role in contributing to the country’s GDP, manufacturing output, and the country’s exports.


The enterprises generate a lot of employment opportunities thereby helping bridge the gap between unemployment and poverty; also paving the way for the development of the rural areas in the country.

They have helped industrialization in these areas with low capital cost compared to large industries. In complementary to the large business sectors, MSMEs have a major part in the country’s economy, thereby helping in the socio-economic development of the nation.


They produce and manufacture both for domestic and international markets. So much advancement and product improvement has been seen in the khadi and coir industries. The upbringing of rural areas has been one of the major outcomes of the MSMEs collaboration with the various ministries and State Governments.
To be precise the 6.3 crore MSMEs are not only contributing one-third to the nation’s GDP but also help in the employment of the population in the non-formal sector.


The MSMEs play a major role in the transformation of India from an emergent power to a reputable financial center. Not wrong in saying that the MSMEs will be the gear in the wheel for this journey.


Importance of MSME for the economy


Throughout the world, the MSMEs have been accepted to be a major means of economic growth and for the promotion of justifiable development. The rate of growth in the highest rate is from the MSMEs.

Requiring Low investment for setting up, flexible operation, and the ability to develop the native technology accordingly are few major reasons that MSMEs have for having taken India to greater heights.
The second-largest employment generating sector next to agriculture, employing about approximately 120 million people.


MSME ministry targets to increase the GDP to 50% due to their contribution by the year 2025, as India moves ahead to become a $5 trillion economy.


At present, they contribute about one-third of the GDP which is 6.11% from manufacturing, and about 24.63 from the MSME service activities of the 45 lac units across the nation.


MSMEs contribute about 45% of the overall exports.
By specifically employing the people in weaker sections of the rural society, the MSMEs promote all-round development through the provision of employment opportunities.


Opportunities to utilize banking services and products are encouraged to be used by MSMEs in tier 2 and tier 3 cities thereby an additional way wherein the amount can be used in the inclusion of the final economy contribution.


MSMEs encourage innovation in budding entrepreneurs to build new products thereby boosting the growth and help in fueling the economy.


COVID-19 and its impact


MSME’s play a crucial role in realizing the vision of ‘Aatmanirbhar’ or self-reliant India. It was also one of the hardest-hit sectors due to the COVID -19 pandemic as the supply chains in world trade took a major jolt and came to a standstill. The government has been lending helping hands to regain the momentum in these sectors, knowing that prioritizing the development of these sectors is critical to the overall development of the Nation. As much as the Government provides support to these sectors, the benefits can be utilized only if the Business is registered as MSME under the MSME act.
An economic package was proposed to regain the momentum, about 20 lac crores almost 10% of the GDP was brought in to help all sectors including the farmers, middle-class people, industrial units, and MSMEs.


LOAN TO MSME

  • Around two lakh MSMEs would be benefited from the 20,000 crore subordinated debts announced for MSMEs.
  • A collateral loan of three lac was provided with a tenure of four years.
  • The definition of MSMEs was changed which now included turnover as one of the parameters in addition to investment. Micro units can have a 5 crore turnover, with no global tender for up to 200 crores and any pending payment to the MSMEs to be made in 45 days.
  • A 12month moratorium on the loans and a 100% credit guarantee cover to be provided as well. These loans were provided until October 31st this year. Close to 45 lac MSMEs were supposed to be benefitted from this.
  • Global tenders up to 200 crores were banned in any Government venture, as foreign companies are bright competitors and use unfair practices to procure the opportunities. The result of which Indian MSMEs falling prey to such international giants. Banning these will help enhance the vision of a self-reliant India and also enable ‘make in India’ to come true sooner.

As the Government now highlights the role of MSMEs in enhancing exports and thereby making our country self-reliant, the need to import from China will stop. These were the Union Minister, Nitin Gadkari’s thoughts that echoed in his meeting .

Being self-reliant already being implemented in industries such as automobile and agriculture, solutions have been seemingly found and the need to import from China has certainly not been seen as a necessity. The results of which were seen sooner as India was now observed to export a lot than importing.


He also said that as far as Indian policies are concerned, our way of technology acceptance, reducing the production cost and providing products of good quality, the young talented manpower in the country is no doubt the strength behind the achievement of self-reliant India.


With the majority of countries not interested to be dealing with China currently, rather providing an advantageous situation for us; as they are rather interested in doing business with India. A great opportunity for the manufacturing sectors to scale up capabilities to boost exports and thereby contributing to the increase in the economy.


With positive trends showing lesser imports from China and greater exports, the minister added that MSMEs are doing a great job despite facing an economic crisis. He also added that the Government had sanction 93 schemes and over 100 schemes are in pipeline would be cleared sooner to pave the way development of MSMEs.


Certain areas that could boost the development of MSMEs at a quicker rate would be below

  • Artificial intelligence
  • Robotics
  • Using the waste to make something useful (in short waste to wealth)
  • Sustainability
  • Virtual reality-based solutions
  • E-mobility
  • Development of smart villages.


If we see notable developments in the above areas that could be an added advantage for us.


A lot of collaborative projects like centers of excellence are being set up across the nation. These projects are being set up across the IITs and NIITS which are one of the premier educational and research institutes. This would help ignite younger minds and also pave way for numerous budding entrepreneurs.

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COPYRIGHT NOTICE –
@Sindhu Vinod Narayan. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links used, provided that full and clear credit is given to Sindhu Vinod Narayan (Thatmadrasmom) with the right and specific direction to the original content.