Small businesses are at the heart of our economy. One must understand that no company in the world is self-reliant and fully integrated. It depends on suppliers and vendors, distributors, to do its everyday business. In India small business is growing day by day, our country is large in size, the population is high, most of India leaves in the village, most places big companies make sale product, retailer, vendor, and the buyer also, so small business has good chance to grow in India, find the best problem you solve, start or convert that in business growth. India is expected to emerge as one of the leading economies in the world over the next decade in light of a positive political and economic scenario. The Micro, Small & Medium Enterprises (MSME) segment is expected to play a significant role in the emergence of the Indian economy. The development of this segment is extremely critical to meet the national imperatives of financial inclusion and the generation of significant levels of employment across urban, urban and rural areas across the country.
Further, it can nurture and support the development of new-age entrepreneurs who have the potential to create globally competitive businesses in India. MSME can be the backbone of the existing and future high-growth businesses with both domestic and foreign companies investing in the "Make in India" initiative and making a significant impact in the area of indigenization. "Make in India with zero defect and zero effect", is a significant opportunity. The new wave of MSME should enable the development of a business ecosystem that enables and continuously support a business that is geared to deliver the right product, the right quality, the right solution, and the right service at a competitive price, both in domestic and international markets. The "Digital India" revolution also provides a great opportunity to promote MSME participation in the Information, Communication, and Telecommunication (ICT) sector, in line with the government vision. It is equally important that the MSME segment develops in all areas of agriculture, manufacturing, and services sectors because each of these sectors will continue to be very relevant to the overall GDP growth as well as employment generation. The MSME sector will act as a catalyst to bring about this socio-economic transformation.
The shape of the pyramid of Indian SMEs is bound to change by 2024 as we expect a wave of consolidation sweeping 10-20% of the lagging SMEs to extinction in the next 3-5 years. While quiet closures are imminent and immediate, distress sale procedures and value extraction plans may take more time and effort than commensurate returns. M & A firms will need to watch the action as the flurry of activity is set to swarm their corridors. The question is if there would be enough buyers as compared to those who need to sell.
We expect new firms to bear faster in the next three years than 10 in the past. It will be partly offset by the deaths of the SMEs, especially in the micro-enterprise segment. The population of home-based self-employed businesspersons is expected to grow fast. The investment in infrastructure, construction led products, and its derived sectors, the growth in B2B business services, consumption of entertainment, retail, healthcare goods and services, media, tertiary food processing zones, apparel, EVs, renewable, electronics, automotive services and EV, analytics, data sciences, and technology-led sectors will witness a massive uplift by 2030. What is unclear is whether the benefit will be even across the SMEs in different revenue segments.
They need market access, not quotas. They need the capability, not just the intent to grow. Finally, they need support and active investment from the winners, not just grants and CSR money. Finally, it's time that the strong lifted the weak, not the weak dragging the strong down. India is to arise as one of the key economies throughout the following decade in the light of a political and monetary situation. The Micro, Small, and Medium Enterprises (SME) portion will play a significant role in the emergence of the Indian economy.
Further, it can sustain and uphold the new-age business visionaries who can make internationally growing organizations from India. The growth of SMEs in India can be the spine for the current and future high development organizations that include homegrown and unfamiliar organizations putting resources into the "Make in India" initiative by the government. The new wave of SMEs in India should empower the business eco-framework and persistently upholds businesses that provide the right product, quality, solution, and service at a competitive price, both in homegrown and global business sectors. It is similarly significant that the MSME portion creates in every aspect of horticulture, assembling, and administration areas because every one of these areas will keep on being extremely pertinent to the general GDP development just as business age. This area will go about as an impetus to achieve this financial change.
While the novel corona virus has wreaked havoc upon the organized world, it has also ushered an opportunity for the new tides of transformation to emerge. This bleak situation where businesses and institutions have suffered substantial losses on account of the global pandemic also holds the potential for heralding a profound paradigm shift in the way businesses are imagined and defined, namely the shift from offline to the online digital medium. The lockdown has taught the entire business world a lesson in the survival of the fittest tactics and how best to leverage seemingly adverse conditions to one's gain. The Government of India has brought in a surfeit of bailout packages, loans, and waivers to rescue the ailing industries in the country. It has also unequivocally championed the need for the nation to become self-reliant, besides heralding a slew of ingenious schemes such as the "vocal for local", financial aid, and an INR 20,000 crore security reprieve. The center is also endorsing the immediate need for businesses, academic institutions, and public sector units to immediately and effectively shift to online means of business to maintain market relevance. Here is a slew of essential factors every SME and MSME must go through before recommencing their operations once the lockdown gets lifted:
No matter the size, nature, or dimension, the primary concern for every business is to initiate an in-depth assessment of the existing company assets, its overall financial health, and security aspects. As the pandemic has interrupted operations, productions, and sales across frontiers, companies need to arrive at a realistic and holistic overview of the present situation in the face of the virulent pandemic.
Re appraisal of all business blueprints is of the utmost essence for SMEs in the event of such an industrial setback. The post pandemic landscape is undoubtedly going to be different than the pre-COVID days and businesses have to revamp and realign their planning and strategy for the future accordingly. There is a need for a realistic and well-formed map for the road ahead while taking into consent the outlook of the various stakeholders of the company.
The fourth industrial revolution is a well-timed boon indeed, a veritable blessing in disguise for businesses around the world. Even the SMEs must leverage the latest technological disruptions such as AI, ML, CRM, Cloud, and other innovations. You can connect with OMRA Solutions for building your CRM Software, Billing Software, and Cloud based Software with the latest technologies. We only work with our quote:
Businesses should adapt to the fourth revolution of smart automation and invest appropriately to bestow a new-age tech empowered operational facelift, this thriving in the digital economy. Tech empowered businesses have the edge over conventional competitors churning higher ROI and market performance even in the times of a pandemic. Though the necessary investments for these overarching business augmentations and up Skilling may seem unfeasible and vast, it is an essential cost that must be undertaken considering the future consequences. Businesses must execute optimum risk mitigation strategies in the face of the pandemic and should also seek to acclimatize for any future crises.
To survive the crucial period and hard times, it is imperative that businesses, especially SMEs do their financial planning. During the COVID pandemic, we saw that many small and medium-sized businesses had to shut down completely because they hadn't done financial planning. Small businesses and startups need to make sure that they have enough savings available in their back pocket for emergencies so that they won't have to completely shut down. Doing a financial checkup every quarter or every half of the year and revisiting the strategies and altering them to make up for the shortcomings is a good thing to do. It is also better to have a look at what your competitors are doing and how you can do it in a better way to save a handful of money.