From new foreign trade policies to insurtech companies tapping MSMEs, top SMB stories of the week
Bringing the growth of the MSME sector, here’s what SMB stories covered this week.
Insurance companies finding potential in MSME sector
Insurance coverage is essential for shielding businesses from unexpected risks. However, most Indian micro, small, and medium enterprises (MSMEs) perceive insurance as an unnecessary burden and refrain from buying it.
A significant 85% of MSMEs remain uninsured, leaving themselves vulnerable to various business risks. Despite this, the potential market size for SME insurance in India is significant, says Ankit Agrawal, CEO and Co-founder of . The company recently acquired Mumbai-based SME insurance provider Verak, indicating insurance companies' recognition of the immense potential in this untapped market.
The lack of awareness about insurance benefits is the primary reason for Indian MSMEs' reluctance to adopt insurance coverage. Enterprises face several risks, including property loss, physical damage, theft, bad debts, and non-realization of bills and receivables, among others. However, the perception that the insurance claim process is tedious often outweighs the relief insurance coverage can bring to businesses.
Although insurance may be perceived as a "push product" in India, several initiatives can be undertaken to change this mindset, says Saket Dalmia, President of PHD Chamber of Commerce and Industry. Currently, only 15% of the 6.33 crore Indian MSMEs have business insurance which shows that the sector has untapped potential.
Foreign Trade Policy 2023 focuses on boosting exports
India's new Foreign Trade Policy 2023 aims to bolster domestic businesses by advancing the Districts as Export Hubs (DEH) programme and increasing the export value of districts nationwide.
The Department of Commerce introduced the DEH initiative in 2019, recognising that every district has the potential to become an export hub. The new policy underscores the implementation strategy for the DEH initiative, as the Indian government collaborates with state governments to leverage districts' potential and convert them into export hubs.
The goal is to raise the export contributions of MSMEs and propel total exports to $2 trillion by 2030.
Other top picks of the week:
Govt invites applications for MSME Awards 2023
The Ministry of Micro, Small and Medium Enterprises (MSMEs) has invited applications for the National MSME Award 2023 in five different categories including manufacturing, service, state awards, aspirational districts, and banks.
The MSMEs need to have Udyam registration to apply for the awards. The last date for submission is May 10, 2023. There are five different categories to apply for.
The awards acknowledge entrepreneurs for their performance and support innovative efforts. The goal is to promote their spirit in the broader interest of qualitative development of MSMEs.