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The art of digital marketing for local enterprises
India’s small businesses, known as micro, small and medium enterprises (MSMEs), are the backbone of the economy. There are over 63 million MSMEs in India, contributing around 30% of the country’s GDP and employing over 110 million people. However, these small businesses often face challenges in accessing finance and markets. The biggest challenge and opportunity for any finance company is to acquire and retain consumers. SMEs specially need to evolve their marketing strategies to make optimum use of digital and reach out to more consumers. Digital transformation and innovative fintech solutions are key to empowering India’s small businesses to grow and thrive.
Innovative digital lending platforms, mobile payment systems, invoice financing, and supply chain financing are enabling small businesses to streamline operations and gain better access to capital. Initiatives like SIDBI’s Startup India Investor Connect Portal are democratising access to funding for startups across India. As of 2021, India had over 2,100 fintech startups, with investments reaching USD 8 billion. Digital lending to MSMEs is expected to reach USD 516 billion by 2030. Embracing fintech is crucial for small businesses to overcome traditional barriers to credit and unlock their growth potential.
Digital Marketing for Global Visibility
Embracing digital transformation is crucial for small businesses to remain competitive. Establishing a strong online presence through effective social media marketing, e-commerce, and digital branding is essential for global visibility and market penetration. Utilising digital platforms strategically ensures small businesses can access new markets. India has over 800 million internet users, with a large number of users from the rural India. Digital marketing thus enables these small businesses to reach the consumers, especially in the smaller markets and drive sales. Initiatives like Meta’s Small Business Loans Initiative are empowering small businesses to scale their digital presence.
Companies should look at increasingly integrating targeted consumer approach, hyper-personalised content on social media, integrating state-wise influencers, building emotional connect through content, content around the right kind of awareness to reach consumers in a more strategic and faster way.
co-founder
Digixpressions.
Integrating Cutting-Edge Technology
Integrating cutting-edge technology enhances operational efficiency, streamlines supply chains, and drives innovation for MSMEs. Adopting digital tools like online accounting software, mobile payment systems, and digital lending platforms empowers small businesses to grow and thrive. The global smart manufacturing market is expected to reach USD 506 billion by 2027, with significant adoption in India. Initiatives like CII’s Digital Saksham are educating and training micro and small business owners to integrate into the digital economy, access credit, expand market access, and digitise operations. Embracing Industry 4.0 technologies is crucial for small businesses to stay competitive.
Collaborative Efforts for an Enabling Environment
Collaborative efforts between policymakers, financial institutions, and MSMEs are crucial to create an enabling environment for small businesses to thrive. The Indian government has launched several initiatives to support small businesses, including the MSME Development Act, the Udyog Aadhaar Memorandum, and the Pradhan Mantri MUDRA Yojana. However, more needs to be done to address the challenges faced by small businesses. Streamlining regulations, improving access to credit, and bringing in a culture of innovation are key priorities. Initiatives that provide digital financial literacy and access to personal finance strategies are crucial to unlocking the full potential of MSMEs.
The future of India’s small businesses lies in digital transformation. By using innovative technologies and collaborative efforts, we can create an enabling environment for MSMEs to thrive and contribute to India’s economic and social development.