Here’s How Govt and Private Companies Inducing Technology Adoption in MSMEs

The Indian business marketplace has changed after the pandemic hit the country. Micro, small and medium enterprises (MSMEs) have inclined toward technology and embracing it faster. In the epidemic-led downturn, technology or say, digitisation has proven to be a saviour. By transitioning a brick-and-mortar store into an online shop or joining an online platform, various small businesses were able to sail through the hailstorm. 

In recent times, the government, as well as private organisations, are taking measures to bolster MSME through technology. Various initiatives have been launched to induce small businesses to adapt technology or on board digital platforms. Apart from registering businesses on the e-commerce channels, there are several other ways to get the online business off the ground. 

Rendering Credit Support 

MSME invariably strives to get credit; however, the pandemic has increased the need for credit support amid small businesses. To facilitate such companies, the renowned private bank, HDFC Bank has inked a pact with the National Small Industries Corporation (NSIC) for providing credit support to the MSME sector. According to a report by Business Standard, under this deal, India’s largest private sector bank will also provide MSMEs with a set of specially-tailored schemes to enhance their competitiveness. The bank branches will extend support to the MSME projects in the areas they are located and to other important industrial sectors across the country.

"HDFC Bank has signed a memorandum of understanding with National Small Industries Corporation to offer credit support to MSMEs across the country," the bank said in its official statement. 

Facilitating in Adopting E-commerce 

Despite the advancement of technology, comprehending the e-commerce model is still tricky for numerous small businesses. E-commerce enabler, Shopmatic has decided to address this issue by tweaking its transaction model to remove the monthly hosting fees for subscribers.

According to a report by The Economic Times, the online platform will now only charge 3 per cent transaction fees to merchants going online, making it easier for businesses to embrace ecommerce. This will encourage aspiring entrepreneurs to take their business online, through four different ways to do ecommerce, basis their preference - Webstore selling, Chat selling, Social selling and Marketplace selling - and gear up for the festive season sales, that is around the corner.

In addition, the e-commerce firm aims to onboard five million customers over the next couple of years and is launching a slew of initiatives for this. 

Strengthening Women Entrepreneurs 

Women entrepreneurs represent a marginal share amid the MSME sector. According to a report by Financial Express, the BRICS Women’s Business Alliance has lately recommended the five partner nations to explore setting up of a Credit Guarantee Fund to address challenges around access to credit and financial or digital literacy faced by women entrepreneurs. 

Amid other recommendations, the alliance also asked for creating a financial literacy tool kit based on the best practices of BRICS countries and encouraging banks and other financial institutions to promote financial literacy through the establishment of public and private investment programs.