MSMEs represent over 90% of businesses worldwide and account for more than 50% of global employment. These figures, impressive as they are, only scratch the surface of the profound influence they wield. From artisanal craftspeople in remote villages to tech startups in bustling urban centers, they are the backbone of local economies and cultural heritage. Yet, their contributions often go unnoticed amidst the towering giants of the corporate world.
One of the lesser-known facts about MSMEs is their incredible adaptability and resilience. Unlike larger corporations, MSMEs have the agility to pivot quickly in response to market changes, economic crises, and technological advancements. This ability to innovate and reinvent themselves has proven crucial in times of global challenges, such as the recent COVID-19 pandemic, where many MSMEs demonstrated remarkable ingenuity in adapting their business models to survive and thrive.
Industry Outlook reached out to experts seeking their thoughts on this day and this is what they had to say.
Attributed to Ms. Zaiba Sarang, Co-founder of iThink Logistics
“The logistics sector, a backbone of global trade, is witnessing a transformation driven by technology. Micro, Small, and Medium Enterprises (MSMEs) are at the forefront of this change, leveraging AI to create a more collaborative and future-ready business landscape. AI empowers MSMEs by optimizing supply chain operations, from inventory management to last-mile delivery. Predictive analytics help these businesses forecast demand accurately, reducing wastage and ensuring timely delivery. This technological edge enables MSMEs to compete with larger players, enhancing their market presence.
Collaboration is another critical aspect where AI plays a significant role. By integrating AI-driven platforms, MSMEs can seamlessly connect with suppliers, distributors, and customers. This connectivity fosters a cohesive ecosystem where information flows efficiently and decision-making becomes more data-driven. For instance, real-time tracking systems powered by AI provide transparency and accountability, ensuring that all stakeholders are on the same page. AI also brings about cost efficiencies. Automation of routine tasks such as sorting, packaging, and route optimization reduces labor costs and minimizes errors. For MSMEs operating on tight budgets, these savings can be redirected towards growth initiatives and innovation.
At iThink Logistics, we are committed to empowering MSMEs by providing AI-enabled solutions tailored to their unique needs. By embracing AI, MSMEs are not only enhancing their operational efficiency but also paving the way for a more resilient and adaptive logistics sector. The future of logistics lies in this symbiotic relationship between technology and MSMEs, driving progress and creating new opportunities for all.
Attributed to Akash Gupta, Co-founder & CEO of Zypp Electric
At Zypp Electric, we firmly believe that embracing AI and technology is key to empowering MSMEs in logistics and creating a collaborative, future-ready enterprise. Our data shows that solution the use of AI can increase MSME productivity by a significant rate and operating cost benefit with strategic efficiency and demand. Forecasting and fleet management enable MSMEs to streamline operations, reduce waste and provide prompt and reliable service to their customers.
However, the real power comes when MSMEs collaborate and share data through secure AI-powered platforms. This allows them to collectively gain powerful insights, predict trends, and make intelligent decisions. Zypp is committed to building this collaborative AI ecosystem to help MSMEs thrive in an increasingly competitive export market. By harnessing technological potential and working together, we can unlock the full potential of India's exports and foster sustainable growth for all major industries.
Attributed to Raj Sivaraju, President, APAC, Arete
"On World MSME Day, we confront the stark reality that the economic backbone of our nation – micro, small, and medium enterprises – faces formidable cyber threats and risks. At Arete, we recognize cybersecurity as an existential imperative for MSMEs to thrive in the digital ecosystem. Our mission is to demystify cybersecurity, providing robust, tailored solutions that reinforce their defenses against relentless threat actors and cyber incidents. However, true cyber resilience transcends technology – it demands a profound cultural shift, where cybersecurity becomes deeply ingrained across every facet of an MSME's operations, cultivating a security-first mindset that empowers them to navigate the digital landscape with confidence and agility. Today, we renew our commitment to arming these economic champions with the vital cybersecurity capabilities they need to conquer new frontiers undeterred, for when our MSMEs are cyber-resilient, our nation's economic future burns brighter than ever."
Attributed to Vishal Salvi, CEO of Quick Heal Technologies Limited
“MSMEs account for approximately 30% of India’s GDP and provide employment to over 110 million people across various sectors, making them a crucial driver of economic prosperity. They are essential for realizing the vision of Atmanirbhar Bharat and contribute significantly to our nation's economic prosperity. As India’s only CSMA-aligned solutions provider, Seqrite deeply understands that cybersecurity is indispensable for the growth and resilience of MSMEs as well as their unique challenges. Our commitment extends beyond protection; we empower enterprises with tailored cybersecurity solutions that bolster defenses and mitigate risks. This enables enterprises to operate securely, build trust with customers, and expand into new markets confidently while remaining compliant with regulatory acts like DPDP. By investing in robust cybersecurity measures, they can unlock new opportunities, streamline operations, and enhance their global competitiveness.”
Attributed to Amit Kumar, Chief Technology Officer, Easebuzz
"India's massive MSME sector, with over 63 million businesses, is the engine of our economic growth. By leveraging data and strong financial bundling via various Saas-based services, these businesses can unlock even greater potential. Investing in digital payments infrastructure empowers them to make informed decisions, optimize operations, and reach new customers. The government's focus on MSMEs, with initiatives like digital adoption, DPI orchestration and financial inclusion, is crucial for growth and scale. These policies create a supportive environment for entrepreneurs to thrive and become part of the formal economy. As MSMEs contribute significantly to GDP and job creation, their success is vital to India's economic growth. By working together, we can foster a thriving ecosystem that empowers MSMEs to become the backbone of a vibrant Indian economy."
Attributed to Mr. Roshan Shah, Co-Founder and CEO - VoloFin
On this MSME Day, we proudly recognize the steadfast spirit and ingenuity of small businesses worldwide. Through export factoring, we at VoloFin enable MSMEs to navigate global markets with confidence, we empower MSMEs to seize new opportunities and expand their operations providing crucial financial support and unlocking growth opportunities. By bridging cash flow gaps and mitigating credit risks, we empower MSMEs to expand their reach and amplify their impact on the global stage. Together, we celebrate their vital contributions to economies and communities, fostering growth, innovation, and job creation in India and beyond.
