The increasing number of online users sets a new trend in how businesses operate. The estimate of people who are available online is currently at 4 billion. Micro, Small, and Medium Enterprises are changing their old marketing habits to reach out to these people. 

Inside this article, we will take a deep look at the roles of E-Commerce sites in enhancing Msme growth.

But before we learn the much bigger details, let’s find out what MSMEs are.

What Are MSMEs?

MSMEs represent Micro, Small, and Medium Enterprises. These businesses usually generate very little revenue every year.

MSMEs are vital to a country because:

  • There are many; hence, they provide job opportunities to many citizens.
  • They increase a country’s gross domestic product (GDP).
  • They have high growth potential, and they end up attracting investors. Investors bring foreign money into the country hence increasing the country’s revenue.
  • Examples of Micro, Small, and Medium Enterprises in India may include the textile and food processing industries.

You now know what MSMEs are; let’s continue by understanding E-commerce.

Also Read: E-Commerce – A Boon For MSMEs

What is E-Commerce?

The term E-Commerce refers to electronic commerce. It is a business model that permits its users to trade products online.

Ecommerce connects many people worldwide as long as they can connect to the internet. Statistics indicate that over 4 billion people can access the internet in 2022.

Some good examples of E-Commerce are Alibaba and Amazon. 

There are a few classifications of E-Commerce, but the common one is; business consumer (B2C), which connects businesses with their consumers.

The other typical example is business to business(B2B) which connects companies with other companies.

Now that you are conversant with the terms MSMEs and E-Commerce, we can look at the Role of E-Commerce in MSME growth.

Also Read: Best Ways To Manage Legal Terms For E-Commerce Sellers

What Are The Roles Of E-Commerce in MSME Growth?

E-Commerce has many positive impacts on the growth of MSMEs. 

Some of the Roles of E-Commerce include:

  1. Offering Financial Support To MSMEs

Micro, Small, and Medium Enterprises are often impecunious; hence they cannot run their business smoothly. 

Shortage of working capital dramatically affects the ability of these enterprises to access raw materials.

Business-to-business E-commerce offers financial aid to MSMEs from time to time. This funding ensures a steady flow of work without disruptions.

The support that MSMEs get increases their chances of growth.

  1. Connecting suppliers to the MSMEs.

In some instances, accessing raw materials is expensive for MSMEs since the suppliers might not be readily available. 

It’s a problem that many Micro, Small and Medium enterprises experience.

You can connect MSMEs to their raw materials suppliers. It lowers the cost of accessing raw materials and ensures a steady workflow.

Once they connect to suppliers, they can get services such as post-pay. Such services will ensure that they keep the business running even if they are low on working capital.

Also Read: Tax Saving – Best Practice For E-Commerce Sellers

  1. Enlarging The MSME Marketplace

Marketing goods to potential customers outside the local marketplace has been complex for MSMEs. It is because the cost of reaching out to international clients is expensive.

But with the use of E-Commerce platforms, reaching out to clients all over the world has never been easier. 

E-Commerce platforms play a role in showcasing different MSMEs products online. People interested in the products can purchase the goods through the website.

Therefore E-Commerce has a role to play in expanding the marketplace for MSMEs. Consequently, it increases MSME growth potential.

Well-known Ecommerce platforms get much traffic daily. Therefore, MSMEs with good products are likely to experience high purchases. 

  1. Increased Revenue

There exist a few methods in which E-Commerce can increase the revenue for MSMEs. One is by increasing sales through online purchases.

Two is attracting investors who may want to invest in the company to see it skyrocketing shortly.

Using E-Commerce platforms to market different products has seen many MSMEs generate revenue via online purchases.

Also Read: Tips For Better Offers To Give To Customers For E-commerce Sellers

With the increased revenue, MSMEs will invest in more assets and scale up the enterprise.

  1. Savings In Marketing Spending

Before, MSMEs had to pay a lot to market their products. They had to struggle to ensure their products’ recognition in the market. 

With the use of E-Commerce platforms, less money gets spent on marketing. MSMEs do not have to spend much time making their products recognizable in the media.

The Role of E-Commerce platforms is to expose and recommend products to consumers. MSMEs are only required to pay a small fee.

Therefore you can put the rest of the money for marketing the products under a savings account. You can use it later to improve their products.

  1. Enhanced Customer Experience

Customer experience differentiates businesses today. Customers are more likely to refer a friend to a particular product only if they like the experience.

Therefore, MSMEs must spend more time improving their products to bring the best out of their customers.

On the other side, E-Commerce Platforms will recommend the product depending on the feedback they get from consumers. 

E-Commerce helps MSMEs by giving them feedback from their consumers. They will then use this feedback to improve their products.

MSMEs that provide their consumers with the best user experience are the ones that have the highest potential to grow.

These are the roles of E-Commerce in MSME growth. But before I conclude the article, I would like to take you through what the government has to say about E-Commerce and MSMEs.

  1. Governmental Support.

The government of India has initiated specific initiatives to speed up the growth of E-Commerce in the country. Some of the initiatives include; skill India and make-up India.

There is also a request from the government that MSMEs should use E-Commerce platforms for marketing their products.

Also Read: Best Ways To Bring Your Business Online For E-commerce Sellers


MSMEs have an extraordinary opportunity to grow if they start to market their products on e-commerce websites. E-Commerce platforms provide MSMEs with an extensive market from which they can market their products. MSMEs should improve their products more to bring out the best customer experience.

By indifi

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