Changing Indian MSME Businesses mindsets about technology adoption and innovation is Crucial

MSME Businesses
MSME Businesses

Indian small & Micro industries ecosystem mainly comprises cottage industries and small businesses that are being run generationally by families, communities, and groups which over a very long period have created & developed their own trust-based business practices which promise & ensure them a trust-based validation process of product and profit.  This can easily be understood through the numbers that have been published over time,

In India a fraction of industries have either developed or are working on Technology up-gradation or in Research &Development (INIS survey). Family-based practices are proclaimed as trade secrets, which in most cases reduces the scope of growth.

However, these figures are also representative of the fact that over a period, these current practices have failed to meet the quality demand of products that are competent in the world market, which is hampering the growth of the entire ecosystem.

Our small businesses just do not require finance as a primary catalyst of change, rather they are in dire need to analyze and understand the global demand pattern of a product. Its innovation level, price competitiveness, and unique selling proposition research can be achieved through a flow and maintenance of information that is very hard to document and maintain in hard format, the continuous flow of data of any new or existing business provides them with leverage to understand the expectations and moods of the market. To cater to that you need strategic decision-making for product development that can match the trimmings and wavelength of the product lifecycle.

To achieve the same goal, it is equally important to understand whether the current ecosystem can do it. Most of these small and micro industries only have survival-based margins, it is nearly impossible for the business owners to run and set up their own units and do in-depth analysis. That’s where Toskii enters to be a partner in their growth.

Presently, nearly 60-70 % of the SMB business are busy with the acquisition of technology in the form of new machinery with little adopting best practices. However, for a product to reach the customer and multiply product reach through marketing. To achieve the latter two, it’s equally important to invest in the Acquisition of External knowledge & Market product Innovation. Multiple-step processes are required to help Small and Medium Businesses to receive guidance and help in growing. Primarily, it is important to work on providing 3 Fundamentals of business I.e Financing, Market access (Both domestic and International), and product innovation. MSME Businesses currently face problems in accessing all three which needs to change for India to be a leading and competitive world player.

Writer: Kapish Singh Sanga – Strategy and Research Specialist | State Spokesperson – IYC

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