Determine the key growth drivers for MSME's
2023 MSME forecast: Some Key Trends for MSME in the coming year.
view-point-marketcentral

With a new year comes new challenges, opportunities, and resolutions. MSMEs (Micro, Small, and Medium Enterprises) continue to be a focus area for India in 2023, with changes across technology, finances, and policy driving MSME growth and profits. 

MarketCentral looks at a few of these growth drivers this week. 

MSMEs account for 30% of India’s GDP, 95% of India’s industrial units, 40% of employment and workforce, and 48% of the country’s exports. With over 634 lakh MSMEs currently operating in the country, experts believe 2023 will only see MSMEs growing stronger. 

Technology adoption

According to PayPal's "MSME Digital Readiness Survey", 52% of small businesses feel positive about digitizing their business. As organizations look to make their digital transformation faster, 2023 will be all about future-proofing MSME businesses to make things sustainable. Using technology to preserve records and finances will make getting loans easier. Investing in customer experience online will translate to new market expansion, larger order volumes, and more channels of revenue outside traditional ones. As new finance, banking and insurance services powered by online channels come into play, payment modernization will also improve things for MSMEs. With services on offer such as creating websites, managing operations, maintaining digital records, pooling inventory, making timely payments, and collecting receivables, MSMEs can be fast equipped with all the tools they need to digitize. 

Brand building

2023 is expected to be a revolutionary year for e-commerce. With going online becoming easier and easier, standing out among competition is of prime importance to MSMEs. One of the great lessons for MSMEs during the pandemic was that brand building matters. 

To operate and survive in the current market, MSMEs will need to look into branding. Branding can help MSMEs expand faster, price better, and attract new talent. Brand building for MSMEs include defining a great customer experience, creating visual brand imagery such as logo and tagline, creating values for the brand such as purposes/belief as well as mission/vision, and finally managing this brand across multiple channels. MSMEs can read more about brand building here

Increasing lending

MSMEs have huge working capital requirements. New fintech organizations and government schemes are coming up with a lot of initiatives to help bridge the demand for capital. Affordable, faster and cheaper credit and digital financial services for MSMEs will be a highlight of 2023. With new government policies likely to support waiving off GST or TDS for fintech providers, MSMEs can expect easier access to bank or alternate financing options.

According to a NeoGrowth survey, 96% MSMEs expect profits to rise in 2023. Using new credit options to build and scale businesses will take MSMEs to new heights. Of 3000 businesses surveyed, 84% of them were opting for business loans in 2023. Over 80% of women MSME owners surveyed also said that they will opt for a business loan. Overall, credit lending and loans are looking to increase this year, thereby boosting MSME growth and the Indian economy as a whole. 

Sustainability

Growing sustainably is very important for MSMEs In 2023, more MSMEs are expected to invest in sustainable growth practices. This includes initiatives around energy conservation, reducing plastic usage, reducing carbon emissions etc. Policies to promote sustainability and green industries can also incentivize manufacturing MSMEs who opt for non-polluting measures of production. For example, the government-backed Neev Fund 2 will provide capital for SMEs in the sustainability category, especially those working in areas of climate action and social impact. About 2000 crores of investment is planned by this fund, proving that sustainability will be a strong theme for MSMEs in 2023. 

Overall, MSMEs are on the path to raise India to a 10-trillion economy. Union Minister of MSMEs, Narayan Rane, said in a conclave recently that India’s path to achieving Atmanirbharta will be led by MSMEs in the front. As powerful drivers for our country’s future, here’s hoping that 2023 will bring new energy to MSMEs! 

At MarketCentral, we equip small and medium businesses with simple resources and tools that can help them be in control of their own business. With a no-commission model, MarketCentral can be the perfect business companion for your digital journey.

MarketCentral will bring you interesting business stories and Small Business news every week through ViewPoint. Let us know what you think about this article at support@marketcentral.in. For more, you can follow our social media handles below:

Instagram: marketcentral

Facebook: marketcentral

LinkedIN: marketcentral

Popular Articles
view-point-marketcentral

Indias-first-online-credit-card-for-MSMEs

view-point-marketcentral

7-Innovative-Ways-to-Fund-Small-Business-Growth

view-point-marketcentral

5-Ideas-to-Grow-Your-Business-Using-Technology

view-point-marketcentral

8-essential-to-promote-online-business

view-point-marketcentral

Budget-2023-MSME-loans

view-point-marketcentral

What-is-immersive-customer-experience

view-point-marketcentral

Online-advertising-for-MSMEs

view-point-marketcentral

Key-trends-msme-coming-year

view-point-marketcentral

SMBs are top job creators in India

view-point-marketcentral

Here's How UPI Can Help Your Business Grow

view-point-marketcentral

5 Small Indian Businesses That Grew Big

view-point-marketcentral

5 Ways to Make Your Business Safe from Future Shocks

view-point-marketcentral

Diwali business: Tips for small and medium businesses during the Indian festive season!

view-point-marketcentral

Get Online, Grow Big: Digital-First Small Businesses Are Prepared for The Future

view-point-marketcentral

The New GST Scheme: How Will It Impact Your Online Business?

view-point-marketcentral

In the News: MSME Credit Card, post-Covid revival, and new schemes for small businesses

view-point-marketcentral

How MSMEs Can Grow And Achieve Greater Independence

view-point-marketcentral

Transport and Logistics Challenges Faced By MSMEs

view-point-marketcentral

The Importance of Digitizing Supply Chains for MSMEs

view-point-marketcentral

How MSMEs Can Grow Sustainably With Three 'R's

view-point-marketcentral

The Importance of Sustainable Growth for Businesses

view-point-marketcentral

4 Customer Retention Strategies for MSMEs

view-point-marketcentral

Customer Retention

view-point-marketcentral

MSME Day 2022

view-point-marketcentral

What is Your Target Market? - Part Two

view-point-marketcentral

What is Your Target Market? - Part One

view-point-marketcentral

9 Ways to Make Your Business Data Safe and Secure Onlines

view-point-marketcentral

Why Automating Your Business Operations Can Make Your Business Smarter and More Efficient

view-point-marketcentral

8 Effective Ways to Drive Traffic to Your Website

view-point-marketcentral

5 Ways to Keep Your Online Business Growing

view-point-marketcentral

What is SEO or Search Engine Optimization, and How Can It Help Your Business?

view-point-marketcentral

6 Tips for Marketing Your Business During Festivals.

view-point-marketcentral

Branding for Small Business - What is It, and How to Do It.

view-point-marketcentral

What is branding and why do small businesses require it?

view-point-marketcentral

Women Entrepreneurship and Women-led MSMEs: Schemes and Benefits PART Two

view-point-marketcentral

Women Entrepreneurship and Women-led MSMEs: Schemes and Benefits PART ONE

view-point-marketcentral

Go Digital, Go Secure: What Does This Mean for MSMEs?

view-point-marketcentral

What is Social Commerce and How Can it Help MSMEs?

view-point-marketcentral

How to implement ISO 9001 for Your Small Business?

view-point-marketcentral

Why is an ISO Certification Important for Your Business?

view-point-marketcentral

Updating Your Financial Operations Can Save Your Business Lakhs of Rupees!

view-point-marketcentral

Keeping Your Business Safe Online: The MarketCentral Way

view-point-marketcentral

Best-Time-for-MSMEs-to-start-digital-marketing

view-point-marketcentral

The MSME Tech Upgradation Scheme: What Does it Mean?

view-point-marketcentral

5 Ways to Protect Your Data and Build a Secure Online Business

view-point-marketcentral

Customer Experience: 3 Ways for B2B Businesses to Stand Out from the Crowd

view-point-marketcentral

Diwali 2021: 3 Trends in Online Business, E-commerce Inflation, and More

view-point-marketcentral

4 Steps To Guide Your Business-to-Business (B2B) Enterprise Towards eCommerce Success

view-point-marketcentral

What The Facebook, WhatsApp Outage Can Teach Small and Medium Indian Businesses

view-point-marketcentral

E-Commerce Market in India to reach $350 Billion by 2030: What Will This Mean for SMBs?

view-point-marketcentral

50 Lakh MSMEs Have Registered on Udayam portal. Enroll your business today.

view-point-marketcentral

3 Recent Schemes and Funds for MSMEs and What They Mean

view-point-marketcentral

E-Commerce Market in India to reach $350 Billion by 2030: What Will This Mean for SMBs?

view-point-marketcentral

Amul, Parle Among Businesses That Has Cut Supplies to Udaan

view-point-marketcentral

Covid-19 Second Wave: What Can Small and Medium Businesses (SMBs) Learn From It?

view-point-marketcentral

Amazon is Opening Physical Stores. What Does it Mean for Small Businesses?