{"id":5726,"date":"2022-07-08T07:29:51","date_gmt":"2022-07-08T07:29:51","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=5726"},"modified":"2022-07-08T07:29:51","modified_gmt":"2022-07-08T07:29:51","slug":"how-e-commerce-contributes-to-msme-growth","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/how-e-commerce-contributes-to-msme-growth\/","title":{"rendered":"How E-Commerce Contributes To MSME Growth"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"397\" height=\"300\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/07\/MSME-Growth.png\" alt=\"\" class=\"wp-image-5729\"\/><\/figure>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>Inside this article, we will take a deep look at the roles of E-Commerce sites in enhancing Msme growth.<\/p>\n\n\n\n<p>But before we learn the much bigger details, let&#8217;s find out what MSMEs are.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/how-e-commerce-contributes-to-msme-growth\/#What_Are_MSMEs\" title=\"What Are MSMEs?\">What Are MSMEs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/how-e-commerce-contributes-to-msme-growth\/#What_is_E-Commerce\" title=\"What is E-Commerce?\">What is E-Commerce?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/how-e-commerce-contributes-to-msme-growth\/#What_Are_The_Roles_Of_E-Commerce_in_MSME_Growth\" title=\"What Are The Roles Of E-Commerce in MSME Growth?\">What Are The Roles Of E-Commerce in MSME Growth?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_MSMEs\"><\/span><strong>What Are MSMEs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MSMEs represent Micro, Small, and Medium Enterprises. These businesses usually generate very little revenue every year.<\/p>\n\n\n\n<p>MSMEs are vital to a country because:<\/p>\n\n\n\n<ul><li>There are many; hence, they provide job opportunities to many citizens.<\/li><\/ul>\n\n\n\n<ul><li>They increase a country&#8217;s gross domestic product (GDP).<\/li><\/ul>\n\n\n\n<ul><li>They have high growth potential, and they end up attracting investors. Investors bring foreign money into the country hence increasing the country&#8217;s revenue.<\/li><li>Examples of Micro, Small, and Medium Enterprises in India may include the textile and food processing industries.<\/li><\/ul>\n\n\n\n<p>You now know what MSMEs are; let&#8217;s continue by understanding E-commerce.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/e-commerce-a-boon-for-msmes\/\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/www.indifi.com\/blog\/e-commerce-a-boon-for-msmes\/\">E-Commerce \u2013 A Boon For MSMEs<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_E-Commerce\"><\/span><strong>What is E-Commerce?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term E-Commerce refers to electronic commerce. It is a business model that permits its users to trade products online.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Some good examples of E-Commerce are Alibaba and Amazon.&nbsp;<\/p>\n\n\n\n<p>There are a few classifications of E-Commerce, but the common one is; business consumer (B2C), which connects businesses with their consumers.<\/p>\n\n\n\n<p>The other typical example is business to business(B2B) which connects companies with other companies.<\/p>\n\n\n\n<p>Now that you are conversant with the terms MSMEs and E-Commerce, we can look at the Role of E-Commerce in MSME growth.<\/p>\n\n\n\n<p>Also Read:\u00a0<a href=\"https:\/\/www.indifi.com\/blog\/best-ways-to-manage-legal-terms-for-e-commerce-sellers\/\">Best Ways To Manage Legal Terms For E-Commerce Sellers<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_The_Roles_Of_E-Commerce_in_MSME_Growth\"><\/span><strong>What Are The Roles Of E-Commerce in MSME Growth?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>E-Commerce has many positive impacts on the growth of MSMEs.&nbsp;<\/p>\n\n\n\n<p>Some of the Roles of E-Commerce include:<\/p>\n\n\n\n<ol><li><strong>Offering Financial Support To MSMEs<\/strong><\/li><\/ol>\n\n\n\n<p>Micro, Small, and Medium Enterprises are often impecunious; hence they cannot run their business smoothly.&nbsp;<\/p>\n\n\n\n<p>Shortage of working capital dramatically affects the ability of these enterprises to access raw materials.<\/p>\n\n\n\n<p>Business-to-business E-commerce offers financial aid to MSMEs from time to time. This funding ensures a steady flow of work without disruptions.<\/p>\n\n\n\n<p>The support that MSMEs get increases their chances of growth.<\/p>\n\n\n\n<ol start=\"2\"><li><strong>Connecting suppliers to the MSMEs.<\/strong><\/li><\/ol>\n\n\n\n<p>In some instances, accessing raw materials is expensive for MSMEs since the suppliers might not be readily available.&nbsp;<\/p>\n\n\n\n<p>It&#8217;s a problem that many Micro, Small and Medium enterprises experience.<\/p>\n\n\n\n<p>You can connect MSMEs to their raw materials suppliers. It lowers the cost of accessing raw materials and ensures a steady workflow.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Also Read:\u00a0<a href=\"https:\/\/blog.indifi.com\/best-tax-saving-practice-for-e-commerce-sellers\/\">Tax Saving \u2013 Best Practice For E-Commerce Sellers<\/a><\/p>\n\n\n\n<ol start=\"3\"><li><strong>Enlarging The MSME Marketplace<\/strong><\/li><\/ol>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>But with the use of E-Commerce platforms, reaching out to clients all over the world has never been easier.&nbsp;<\/p>\n\n\n\n<p>E-Commerce platforms play a role in showcasing different MSMEs products online. People interested in the products can purchase the goods through the website.<\/p>\n\n\n\n<p>Therefore E-Commerce has a role to play in expanding the marketplace for MSMEs. Consequently, it increases MSME growth potential.<\/p>\n\n\n\n<p>Well-known Ecommerce platforms get much traffic daily. Therefore, MSMEs with good products are likely to experience high purchases.&nbsp;<\/p>\n\n\n\n<ol start=\"4\"><li><strong>Increased Revenue<\/strong><\/li><\/ol>\n\n\n\n<p>There exist a few methods in which E-Commerce can increase the revenue for MSMEs. One is by increasing sales through online purchases.<\/p>\n\n\n\n<p>Two is attracting investors who may want to invest in the company to see it skyrocketing shortly.<\/p>\n\n\n\n<p>Using E-Commerce platforms to market different products has seen many MSMEs generate revenue via online purchases.<\/p>\n\n\n\n<p>Also Read:\u00a0<a href=\"https:\/\/www.indifi.com\/blog\/tips-for-better-offers-to-give-to-customers-for-e-commerce-sellers\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tips For Better Offers To Give To Customers For E-commerce Sellers<\/a><\/p>\n\n\n\n<p>With the increased revenue, MSMEs will invest in more assets and scale up the enterprise.<\/p>\n\n\n\n<ol start=\"5\"><li><strong>Savings In Marketing Spending<\/strong><\/li><\/ol>\n\n\n\n<p>Before, MSMEs had to pay a lot to market their products. They had to struggle to ensure their products&#8217; recognition in the market.&nbsp;<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>The Role of E-Commerce platforms is to expose and recommend products to consumers. MSMEs are only required to pay a small fee.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<ol start=\"6\"><li><strong>Enhanced Customer Experience<\/strong><\/li><\/ol>\n\n\n\n<p>Customer experience differentiates businesses today. Customers are more likely to refer a friend to a particular product only if they like the experience.<\/p>\n\n\n\n<p>Therefore, MSMEs must spend more time improving their products to bring the best out of their customers.<\/p>\n\n\n\n<p>On the other side, E-Commerce Platforms will recommend the product depending on the feedback they get from consumers.&nbsp;<\/p>\n\n\n\n<p>E-Commerce helps MSMEs by giving them feedback from their consumers. They will then use this feedback to improve their products.<\/p>\n\n\n\n<p>MSMEs that provide their consumers with the best user experience are the ones that have the highest potential to grow.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<ol start=\"7\"><li><strong>Governmental Support.<\/strong><\/li><\/ol>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>There is also a request from the government that MSMEs should use E-Commerce platforms for marketing their products.<\/p>\n\n\n\n<p>Also Read:\u00a0<a href=\"https:\/\/www.indifi.com\/blog\/best-ways-to-bring-your-business-online-for-e-commerce-sellers\/\">Best Ways To Bring Your Business Online For E-commerce Sellers<\/a><\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-500x91.jpg\" alt=\"\" class=\"wp-image-5315\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan.jpg 716w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>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.&nbsp; Inside this article, we will take a deep look at the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5726"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=5726"}],"version-history":[{"count":3,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5726\/revisions"}],"predecessor-version":[{"id":5730,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5726\/revisions\/5730"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/5729"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=5726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=5726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=5726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}