National Small Industry Day — Let’s Celebrate The Backbone Of Our Growing Economy

Small Scale Industries (SSIs) play a vital role in our daily lives. Everything, including our paper bags that help us bring our groceries home to printing our documents, is a part of small-scale industries. These small and micro-scale businesses are an inevitable part of our routines, yet we only recognize their need when they are not around.?

SSIs not only contribute to our daily smooth functioning but also add 40% of the gross industrial value to the economic development of the country as they generate plenty of jobs, encourage innovation, and give a platform to the local community to contribute and grow. Approximately 95% of the nation’s industrial units are comprised of the small-scale industry sector.

To celebrate this contribution, the Government of India officially announced August 30th as the National Small Industry Day.?

The government has been vocal about supporting small-scale industries and has many policies like the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Credit Linked Capital Subsidy Scheme (CLCSS), Market Promotion and Development Scheme (MPDA), Coir Vikas Yojana (CVY), and Entrepreneurship Skill Development Programme scheme to serve as the bedrock for these industries to grow and expand.

SSIs usually have close-knit businesses, which help create a sense of community and belongingness. This implies that small-scale businesses not only have an economic impact but a positive social and environmental influence that helps bring society closer and contribute better.

Challenges faced by small-scale industries:?

Indeed, the growth paths of individual small-scale industries vary, yet the challenges they encounter are often shared on a global scale. Here are the primary issues faced by small-scale industries:

Limited access to finance: Small-scale industries often struggle to access adequate and affordable financing. Banks and financial institutions might perceive them as higher-risk borrowers, leading to difficulties in obtaining loans and credit.

Limited support by banks and larger financial institutions: Banks and larger financial institutions often exhibit reluctance to offer services to small-scale businesses, influenced by a convergence of factors. These include the businesses' limited financial track record, smaller scale, and possibly less-developed credit backgrounds, compounded by inadequate technological infrastructure. Concerns surrounding default risks and potential losses contribute to their reservations. Furthermore, lower business volumes can result in lower profit margins for financial institutions, thus diminishing the appeal of serving this particular segment.

Also Read: Why do Small Businesses need to Automate Business Accounting

Lack of technical expertise for digital transformation: In today’s day and time, if you are not present online; you are not present at all. This fact may sound scary, but it emphasizes the need for SSIs to join the digital transformation bandwagon. Implementing digital technologies often requires specialized technical skills. Small businesses might lack the necessary in-house expertise to plan and execute digital transformation initiatives effectively. While small-scale industries have immense potential to establish the right foundation for growth and development, these industries also have a lot of scope for digital transformation.

Digitalization can change the game for SSIs by making them improve their efficiency and customer satisfaction while reducing operational costs.?

Slower digital payment adoption: Small-sized businesses, typically traditional businesses, often face significant challenges when it comes to adopting digital payment solutions. Unlike larger companies that have the resources and established relationships to access technology solutions from banks and software providers, SSIs have historically encountered obstacles.?

How is EnKash well positioned to help small-scale industries?

Being a prominent contributor to the economy, SSIs require continuous technological empowerment to enhance their operational efficiency. EnKash is offering innovative solutions to businesses that previously lacked familiarity and access to both financial and non-financial products.?

By using this platform, small and medium-scale enterprises can manage and automate their vendor payments, expense management, accounts payable, and accounts receivables. EnKash's platform, Olympus, is tailored for startups and small to midsize businesses, offering a "plug & play" integration feature that can be easily set up in a do-it-yourself (DIY) manner. This pioneering solution is primarily designed for conventional and small to mid-size businesses that lack familiarity and ease of access to digital payment methods.?

Olympus can help SSIs move from manual processes to digital automation of cash flows without disturbing their existing banking relationships, which can help in process efficiency and cost savings.?

Also Read: What is EnKash Olympus and Its 5 Main Benefits for Businesses

EnKash is making a difference by simplifying everyday spends for small businesses.?

It is vital for all of us to support small businesses as they give a significant boost to economic activities, which is crucial for a developing nation like ours.

Happy National Small Industry Day!?

Found this article helpful? Well, stay updated about the FinTech world and more; subscribe here .

#EnKash #NationalSmallIndustryDay #SME #SmallBusiness #StartUps #CorporateCard #SpendManagement