Top trends that will shape the future of Indian SMEs and MSMEs

The operating landscape of B2B businesses has witnessed a significant change during the COVID-19 pandemic. It has led to a boost in digital adoption, primarily due to the financial constraints imposed by COVID-19.

Businesses have managed to come up with creative solutions for maintaining a steady revenue stream. The unpredictable future carved by the pandemic makes it essential for small businesses to adopt specific trends to thrive in a competitive market.

Top trends that will shape the future of Indian SMEs and MSMEs

Digitisation

Ecommerce adoption has increased with the pandemic. A Forbes report shows there has been a spike in internet usage by 50-70 percent. Digital transactions have replaced cash to maintain social distancing. 

Small businesses are using e-invoice and online payment methods to collect payment. They are also using video calling to showcase their product to build trust.

Such a scenario has made SMBs revamp their models and adopt technologies for efficiently reaching out to customers.

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Using new tools for marketing

Traditional time and space boundaries have been reduced with the rapid growth of technology and the availability of the internet to a large part of the population.

Businesses are gradually learning to enhance their online presence by creating an optimised website, CRM, WhatsApp for Business, listing in the B2B marketplace, and actively responding to customer queries. 

Based on the new consumption pattern of customers, smaller firms carry out market research to understand the demand in a better way. Besides, they work on cost and structural flexibility to ensure viability and competitiveness.

Diving into an untapped niche

Businesses need to venture into new verticals, which have a high demand in the market. NASSCOM's study reveals that startups are developing new products and entering new verticals.

This can be education, fintech, technology services, and others. Such diversification ensures the better sustainability of a firm.

Financial planning to survive the crucial period

This prevents businesses from completely shutting down. Small startups need to have enough savings for emergencies. It is vital to have a quarterly financial health checkup and alter the strategies to make up for the shortcomings.

In fact, it is better to check the approach adopted by the competitors too. This will help in conceiving better business ideations to position oneself ahead of others.

Availing government initiatives

Small businesses may not significantly contribute to the country's economy, but they form a good source of employment for many. This is why such firms are incentivised by government schemes such as Vocal for Local, Make in India, and Startup India.

Even for the MSMEs, small-scale businesses, and MUDRA borrowers, the Emergency Credit Line Guarantee Scheme (ECLGS) is extended. There has been a focus on manufacturing and exporting in India, rather than relying on imports. Such measures help businesses in reviving and growing.

Better networking

This is most important when it comes to competing with existing players in the market. Better connection with the communities helps in creating good word of mouth. This brings more customers to your website, and can result in better ROI if their demands are efficiently met. It will result in better reviews from users and also open up chances for joint ventures.

SMBs need to be flexible, robust, and have all the skills upgraded to meet the current and future uncertainties.

The pandemic has forced such firms to focus on online websites for selling on social channels. They need to create flexible strategies and use digital tools and processes for business recovery and growth to succeed in this venture. 

Conclusion

Even in this slowdown situation, it can be seen that over 60 percent of small Indian businesses operations continue to exist. Innovation, agility, and adaptation to the current trends can prevent small firms from perishing.

Therefore, local businesses and small enterprises must transform their erstwhile process shift towards digitisation and tech-optimisation to stay relevant in the post-pandemic new normal.