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Wadhwani Foundation Calls For Structured Support To MSMEs

Being the top employment engine, everything must be done to maintain and improve the health of the small business ecosystem in India, it said.

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Wadhwani Foundation and its SME-led Initiative, Wadhwani Advantage have called for structured support for micro, small and medium enterprises (MSMEs) as in post-pandemic times, small businesses need to adapt to new market dynamics, be confident in their product lines and maintain competitive pricing.

Today, for example, access to cost-effective finance is mainly digital. Therefore, SMEs must pick up digital skills without which they are not likely to grow. Upskilling and reskilling the workforce in the MSME sector towards digitisation will allow them access to broader sets of suppliers and customers, better payment systems, and broader market visibility, allowing them to scale while eliminating manual inefficiencies.

The foundation said that there is also a need for micro-enterprises (which form the bulk of the 63M SMEs, close to 95 per cent) to mature into small enterprises and the small into mid-size SMEs.

Sanjay Shah, Chief Operating Officer – India/SE Asia, Wadhwani Foundation, said, “With sixty-three million MSMEs creating 111 million jobs in India, they are the largest employment creators in the country and contribute significantly to India’s GDP. Structured support to MSMEs in post-pandemic times will largely be driven by their adoption of digitisation, leading to larger collaborative ecosystems, broader sets of suppliers and customers, and better payment systems that fast become the path for business growth." 

Multiple challenges inhibit the growth of MSMEs, like inadequate infrastructure, lack of access to capital, low productivity, and dearth of innovation. As a result, 99 per cent of businesses are unable to grow and remain micro in their life cycle despite having great potential for the same.

Samir Sathe, Executive VP – Wadhwani Advantage at Wadhwani Foundation, said, “MSMEs are at an inflection point in India and carry the unmet potential to grow 2x-10x. We at Wadhwani Foundation remain committed to accelerating their growth with our unique model of external curated advisor-led consulting, PMO and subsidized funding support, productized IP, and a proposed community platform that will enable SMEs to access their ecosystem, thereby facilitating a systemwide change.”