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Transforming MSMEs into self-sustaining sectors with 6 effective solutions

As the MSME sector is linked with large-scale employment generation opportunities and enhances the entrepreneurial spirit, MSMEs are an important factor in making India emerge as an economic superpower. The sector has immense potential to grow and prosper but faces varied business challenges.

The pandemic created certain challenges for these MSMEs, such as cash flow stress, adapting to the safety norm, increased online business models, a threat to cyber security, and functioning according to government regulations.

MSMEs can follow 6 distinctive solutions that can positively impact their business model, accelerate their development, and contribute to economic development. 

Collective Focus on Big Scale Development

Many big-scale development processes like sales operation, marketing, new product development are hampered as MSMEs are clustered and fragmented in smaller parts. They fail to enjoy the benefits offered by these development processes and harness their true potential. A collective approach on these aspects can inflict positive and innovative growth and benefit the MSMEs to a larger extent. 

Since MSMEs are present in a cluster, they all experience similar business challenges and, with a collective effort, can devise a solution that benefits all. Even though many MSMEs sell varied products and services that may distinctively differ, concentrations of common skill sets and industry types can be seen in the sector. Healthy competition can be seen among the MSMEs with a collaborative effort to harness the big-scale development process.

Internet as a Growth Inflictor

The Internet has benefited MSMEs to a very large extent, especially during the COVID pandemic. Many MSMEs have shifted their work line digital, like payments and product sourcing, helping increase customer convenience and satisfaction. The Internet has also helped small businesses significantly by helping them establish their presence and increase their consumer base. 

Expansion of MSMEs and bringing them to the level of multinational companies have happened only because of online marketplaces and increasing B2C platforms. Another big factor in using digital media as a growth inflictor for MSMEs is adaptive digital marketing techniques. Social Media Marketing, Content Marketing, Online Client Testimonials, and much more have contributed to the marketing strategies of MSMEs. 

Niche Market Practice 

Building on a niche is an important aspect for any business to prosper, even in MSMEs. A business can be easily identified by the niche line of products and services and can cater to and satisfy a specific need. 

MSMEs can prosper with a niche market approach by effectively using their limited resources and focus with limited management bandwidth. MSMEs also have the liberty to tap into unexplored opportunities other than mainstream areas of the market.  

Power of Small 

Even though MSMEs miss out on the economic benefits of the market, they can use their size as an advantage to increase their ability to adapt to the changing landscape and become agile. Since MSME businesses are smaller in the market, the owner and top management personnel are present at the core of the operations. This helps customers contact the owners directly and allows the business to quickly adapt policies as per needs.  

Growth with collaboration 

The exchange of information and idea within MSMEs would help create a dynamic environment that is well integrated into global value chains. Collaboration of MSMEs benefits their mutual strengths and helps identify and rectify genuine on-ground problems, creating innovative solutions to prosper. 

Indian MSMEs can form strategic alliances with foreign players as it helps them expand with rapid globalization. MSME alliances can also benefit from adopting new technologies and a workforce with an advanced skill set. Not only does collaboration help with creating healthy competition, but it also helps MSMEs tap into markets and explores opportunities.   

Prosper with Innovation 

Introducing innovation can help MSMEs to stay relevant, improve infrastructure, increase profitability, and much more. MSMEs have huge potential to introduce innovation and scale-up in the market quickly. Innovation also helps MSMEs to remain sustainable and prosper in the long run.

Besides fulfilling certain compelling needs, businesses have been able to innovate to transform the outlook of an entire industry. Collaboration between MSMEs and accountants helps in delivering value constantly for all stakeholders.   

Read the full article here: https://yourstory.com/smbstory/prospects-opportunities-transforming-msmes-stable-sector/amp

 

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