Leveraging B2B eCommerce to Transform MSMEs

A 2023 KPMG REPORT STATED THAT 75 PER CENT OF MSMES USING B2B PLATFORMS REPORTED IMPROVED CASH FLOW MANAGEMENT DUE TO ACCESS TO SUCH FINANCIAL PRODUCTS.

- AMIT BANSAL

Micro, Small and Medium Enterprises (MSMEs) is shedding its industry underdog image with B2B eCommerce. According to data from the Ministry of Micro, Small and Medium Enterprises, MSMEs, with its over 63 million enterprises, contribute around 30 per cent to the nation’s GDP, solidifying its role as the backbone of the economy. The sector is reported to employ over 110 million people. Despite its importance, MSMEs still face challenges including limited market access, difficulty in managing supply chains, and lack of resources for scaling operations.

B2B eCommerce platforms help MSMEs reach broader markets enabling businesses to connect with buyers and suppliers across the globe. The role of such platforms becomes critical given that MSMEs contribute a notable share of more than 43 per cent to India’s total exports. Courtesy such platforms, MSMEs can expand and scale their operations beyond local markets.