MSMEs' Digital Transformation

Platforms can provide the "Escape Velocity" for Micro Small and Medium Enterprises (MSME) to move to next level of productivity and value capture. They can help MSME overcome four major challenges related to?Finance- access and payments;?Supply Chain- Inbound and Outbound;?Marketing- Branding and Distribution; and even?Human Resource Management- Recruitment and Training.?

Finance- Access and Payments?is a major pain point for MSMEs as they are not fully integrated into the formal financial ecosystem.??FinTech platforms like?Crediwatch?(an information intelligence platform) and ML-based digital lender?Happy Loans?provide data insights to lenders to offer loan products to MSME which may not have pass the regular financial viability measurements. Similarly, PaymentTech platforms like?Mswipeand?RazorpayX?provide payment acceptance and POS enablement thus revolutionising the digital payment space for merchants across the country?

Supply Chain- Inbound and Outbound?is very important for MSME where margins are thin and any inventory carrying cost or even stock out can cause major burden on cash flows. Automobile spare parts e-commerce players like?AutoZilla?can help the garages or even fleet owners to ensure spare part availability across major cities of the country. This is great value for them as they get access to genuine spare parts with minimum price variations across the entire country. Similarly, platforms like?Locushave a free tool ‘QuickStart,’ for startups and small and medium enterprises to improve their supply chain efficiency.

Marketing- Branding and Distribution?related platforms?can create tremendous opportunities for the MSMEs as they lack the financial muscle to create sustained customer interest in both B2C and B2B sectors. Platforms like Meesho have enabled small businesses and even individuals to start their online stores via social channels such as WhatsApp, Facebook, Instagram, etc thereby lowering the barriers to gain distribution.?Tradeindia?and IndiaMart foster an online B2B marketplace,?connecting buyers and suppliers?thus helping SMEs go digital.

Human Resource Management- Recruitment and Training?can become a major barrier for MSME’s growth and scale up ambitions. This is even more important considering the fact that MSME segment is seen as a major job creator and also the fact that the quality and conditions of the jobs created are often doubtful. Multiple digital platforms are helping MSME’s solve their problems related to low quality human capital.?

Platforms like NicheBrains.ai are connecting millions of small and medium enterprises with curated global digital transformation experts thus making it easier for?SMEs to adopt digital transformation.