Want to Invest in Small Businesses? Infuse Money in These Investment Opportunities

Adjusting into massive business industry can be problematic, thus, first-time entrepreneurs should enter the niche as an investor, by infusing into other small companies
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Jan 18,2021
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  • 14 Mins Read

Investment is a prime strand in establishing any business. The more investment secured for the business, the bigger would be the enterprise's size and growth prospect. First-time entrepreneurs often start a business with a small investment, in turn, reducing the risk factor. Managing a small organization is comparatively easier than operating a large company. However, before laying the foundation stone, entrepreneurs can look for running businesses in a particular industry. 

The business ecosystem is dynamic and therefore, it becomes challenging for outsiders to adjust. Rather than competing with others, you can look for small business investment opportunities. There are enormous investment opportunities available in the MSME industry. According to the Ministry of MSME’s report, India's MSME Sector comprises 633.88 lakh units as per National Sample Survey 73rd Round (2015-16).

Adjusting into this massive industry can be problematic initially, thus, first-time entrepreneurs enter the niche by infusing into other small companies. Here are some small businesses that industrialists and aspiring entrepreneurs can infuse into: 

E-learning Platform 

Learning is a constant process that can be taken at any time. It not only renders knowledge about different disciplines but also helps prepare an individual to meet the outside world. Besides, it aids working professionals in upskilling themselves. 

According to a report released by Omidyar Network, by 2022, online education offerings across grades 1 to 12 are projected to increase 6.3 times to create a $1.7 billion market, while the Post-K12 market is set to grow 3.7 times to create a $ 1.8 billion market. This is going to create meaningful opportunity for incumbent players as well as space for multiple new startups.

Seeing this prospect, investing money into e-learning platforms is crucial. The e-learning platforms have revolutionized the process of how education is delivered. With the help of smart classes, students caN effortlessly study at their convenience. Classes offered by the e-learning platforms are economical. This industry is expediting and will continue to do so in the coming time as well, henceforth, it becomes a lucrative business opportunity. 

Advertising and Marketing Firm 

According to IBEF’s recent report, India’s digital advertising market is expected to grow at a compound annual growth rate (CAGR) of 33.5 per cent to cross the INR 25,500 crore (US$ 3.8 billion) mark by 2020.

With the advent of the Internet, traditional marketing has gradually lost its sheen in the market. Companies whether small or large are mainly focusing on online marketing that has huge potential. Since employing marketing professionals and procuring apt marketing tools can be an expensive affair, SME firms generally outsource them. 

As per IBEF’s report, the advertising sector is determined to be the second fastest thriving advertising market in Asia. As per estimation, the amount of spending on advertisement  in India’s Gross Domestic Product will be around 0.45 per cent by 2018.

For this purpose, advertising and marketing firms are operating, helping the SME companies to embrace the new reality. Advertising and marketing companies help build a small company’s online presence and assist in enhancing its network in the virtual world. As advertising and marketing firms are acting as growth-enablers for other small companies, they become an apt investment opportunity for investors. 

E-commerce Business

E-commerce has transitioned the shopping experience of the Indian demographic. Various brands, designs, and cloth sizes are now available at one-stop. According to data released by Statista, owing to the increasing internet user base and favorable market conditions, India has a lot of potential in the e-commerce industry. Growing at an exponential rate, the market value of the e-commerce industry in India was approximately $50 billion in 2018. This number was estimated to reach $200 billion by 2027.

The e-commerce sector holds promising growth in the offing, thus, becoming a seedbed for investors. Since the niche is so vast, aspiring entrepreneurs should do in-depth research and then, narrow down the right bets. 

Entrepreneurs and industry veterans should infuse money into these small business investment opportunities. Apart from these businesses, there are other business investment opportunities as well. If you know any, please share with us in the comment section below. 


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