Digital marketplace integration catalysing growth of MSME

MICRO, SMALL, AND Medium Enterprises (MSMEs) form the backbone of many economies, contributing significantly to employment, GDP, and inclusive growth.

- RAJNEESH KUMAR

In recent years, the integration of these businesses with digital marketplaces has emerged as a transformative force, unlocking unprecedented opportunities for them.

As per a recent report on MSMEs by RedSeer, of the 64 million MSMEs operating in India, an estimated 12%, or approximately 7.7 million, have achieved digital maturity. That number is poised to increase with a helping hand from e-commerce platforms.

Facilitating increased market access

E-commerce platforms are crucial in democratising technology, making it accessible to MSMEs. These platforms lower online business costs, eliminating barriers such as expensive infrastructure and extensive logistical networks. With increased national market access, technology, and logistical support, MSMEs can showcase their products to a larger audience, boosting sales and overall revenue. Establishing an online presence is easy and allows firms to reach millions nationwide while opening new avenues for growth.

Providing technical aid and leveraging data

Digital technology significantly enables MSMEs to streamline operations, optimise efficiency, and enhance overall performance. Advanced tools provided by e-commerce platforms, such as inventory management systems, automated accounting, and payment gateways allow MSMEs to focus on their core competencies.