Growth for MSMEs in India: Opportunities and Ideas to Grow
MSMEs play a significant role in the growth of the country both economically and in employability. Their contribution to the country’s GDP and exports is massive. The MSMEs contribute around 30% of India’s GDP and constitute around 40-48% of the total exports while generating employment, opportunities of 11 crores.
The Government of India, through the Ministry of Micro, Small, and Medium Enterprises has been providing constant support to boost the growth of the MSMEs to create a Self-reliant India and its vision for the ‘Aatmanirbhar Bharat’. Despite, a lot of challenging business environments and competitiveness, the growth of MSME is progressing positively through its entrepreneurial spirit to achieve.
Covid-19 has exposed MSMEs to a wide range of challenges. We will discuss all the possible and practical opportunities, that can fasten the growth of the MSMEs with a surplus progression.
Cluster Development Approach in India
The cluster development approach means a group of organizations, which are located within an identifiable area of similar products with the help of similar technology forms a cluster. Since the products are similar in nature with the same marketing aims and production techniques it is easy to understand their competition. It also helps to form the same cluster that helps to create a robust environment with healthy competition. The government uses this development program to boost the growth, of the MSME by bringing the collective products together that benefit the small and micro-operators to club their business idea together and strengthen the supply chain by creating a huge demand.
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Selling and buying products on online platforms have received tremendous responses from the customers, while at the tip of the finger they can compare the products and prices and save their time on traveling. Similarly, selling products online has also gained a massive response from the sellers as they get better and wider exposure, nationally and globally, unlike physical marketing. This is one of the best opportunities for the MSMEs to launch their products online which helps them to promote their brand recognition at the cost of the internet. This also ensures and enhances their earning capacity to a greater extent and it constitutes a large group audience. The speed of reaching the targeted audience is easy and speedy and retains the trust of the old and new customers by promising deliveries of the products according to their tastes and preferences. This also provides the MSMEs a wider opportunity to understand the needs of the customers and fulfill them by providing them with their needs through their products.
Collaborating with products
Collaboration of products is another great pronto the MSMEs. This gives them a chance to promote their product while ensuring to promote the substitute product. Cooperation among the competing MSMEs is very important as this will diversify the need that can be created in addition to the actual main product. It is a very good advertising strategy, that can be implemented with mere mutual understanding between the collaborators. MSMEs should welcome such ideas and accept the offer from their collaborators. This will boost the customers' interest to preferably choose their products, among its competitive product. It also lets to encourage each other products, by exchanging their ideas and information that ensures to sustain the survival in long run. Successful collaboration helps the company complement, each other’s strengths,s, and marketing strategy, providing a better opportunity to reach products through individual advertisement.
Building on Niche
A business without a niche is like a market without customers. Building a niche is the core importance of the business that ensures its success. The MSMEs should first identify their niche for their products and services, which helps them reach their targeted audience and optimize their limited resources and focus on limited management, by coming up with alternative ideas and opportunities.
Building a niche helps to meet higher margins while meeting customers' interests and getting specialized in a particular product.
Marketing as an influencer
The MSMEs should seek and accept the opportunities, that knocks their way as an influencer. This will create an opportunity, for them to have access, to social media marketing and understand its algorithm to attract customers. The MSMEs should utilize every platform of social media marketing such as online platforms, advertising on social media, blogging, sharing knowledge-able content, video sharing, and guiding on the usage with tips and alternatives.
From, the above strategies, it could be understood MSMEs might be small in business nature but they are no lesser than big companies. With the right guidance and assistance and with enough finance and infrastructure facilities, they can definitely create a SELF-RELIANT INDIA.