Small businesses are backbone of Indian economy
In the past, I have written a few times in this blog about “Challenges of Doing business in India” and “Running a Product business in India“. Is it only thorns along the way? not really. There have been many instances of “Small Indian Companies that have stood over time” and how you can succeed by taking advantage of technology and the first step for that will be to “Secure your business website“.
In this background, I was happy to see a new initiative titled “The Action Committee for Formal Finance for Non-corporate Small Businesses”, certainly a mouthful. The group is constituted by leading organisations from across India, to create a financial architecture for small businesses. They have launched a new good looking website smallbusinessisbigbusiness.org. I appreciate this effort and wish them good luck.
In their advertisement today in Economic Times, I noticed these impressive statistics:
- 5.77 crore enterprises
- INR 6.28 Lakh crore per annum
- 45% contribution to national GDP vs. 15% by the corporate sector
- Provides 90% of employment in the country
- 46 crore employed; 24 crores self-employed
- 62% owned by ST/SC and OBCs
- Only 4% of their financial needs are met by banks
Update– Economic Times 28th January 2015 carried an article about research done by Zinnov:
- 51 million SME companies in India, these are those that have up to 1,000 employees
- The IT spend opportunity here is about $11.5 billion
In a study in 2016, Zinnov says:
- SMEs with PCs is 4 Million (less than 10% total)
- SMEs with an Internet connection is 2 Million
- SMEs with a website is about: 0.5 Million (1% of total)
The Economic Times dated 3rd Nov 2019 carried this article “The bottom of India Inc’s food chain — the MSMEs — feel the sting of late payments the most“.
Nice to know this. Businesses get a bad rap in India. Politicians and artists and religious figures dominate the mindset. It’s a pity