World MSME Day: Small Enterprises, Big Contributions

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the country’s socio-economic development. According to a recent report, the sector contributes to about 30 percent of the GDP and employs over 110 million people, making it the second-largest source of employment in India after agriculture.

MSMEs contribute to around 45 percent of the country’s total industrial output and 48 percent of total exports. The sector plays an instrumental role in skill development and generating employment and entrepreneurial opportunities, particularly in rural and semi-urban areas.

International MSME Day 2024 is a momentous occasion to recognize the indispensable role of MSMEs in shaping the global economy.

Hyder Khan, CEO & Director of Godawari Electric Motors has extended greetings on this occasion, saying, “On World MSME Day, we celebrate the spirit of innovation and resilience that drives the micro, small, and medium enterprises across the globe. At Godawari Electric Motors, we are proud to contribute to this vibrant sector with our commitment to sustainable and affordable mobility solutions. Our fully electric 2-wheelers and 3-wheelers are not just vehicles but a testament to the potential of MSMEs in shaping a greener and more inclusive future. The MSME sector plays a crucial role in providing job opportunities to the youth, empowering the next generation, and driving economic growth. As we celebrate this day, let us reaffirm our dedication to supporting MSMEs and recognize their critical role in shaping a greener, more inclusive future. Together, we can drive progress, foster innovation, and make a lasting impact on our communities and the environment.”

MSME enterprises form the backbone of innovation, resilience, and economic development, creating millions of jobs and propelling growth across diverse sectors. Through their innovative approaches and unwavering commitment, MSMEs continue to shape the global landscape, fostering inclusive growth and driving progress in every corner of the world.

“At Zypp Electric, we firmly believe that embracing AI and technology is key to empowering MSMEs in logistics and creating a collaborative, future-ready enterprise. Our data shows that the use of AI can increase MSME productivity by a significant rate and operating cost benefit with strategic efficiency and demand. Forecasting and fleet management enable MSMEs to streamline operations, reduce waste, and provide prompt and reliable service to their customers”, said Akash Gupta, CEO & Co-founder of Zypp Electric, adding, “The real power comes when MSMEs collaborate and share data through secure AI-powered platforms. This allows them to collectively gain powerful insights, predict trends, and make intelligent decisions. Zypp is committed to building this collaborative AI ecosystem to help MSMEs thrive in an increasingly competitive export market. By harnessing technological potential and working together, we can unlock the full potential of India’s exports and foster sustainable growth for all major industries.”

MSMEs are not only crucial for economic stability but also for social cohesion and community development.

Rohit Garg, CEO & Co-Founder, Olyv (Formerly SmartCoin) says, MSMEs form the backbone of the Indian economy and are pivotal in driving its growth. However, the trade finance gap is high and despite the critical role of small businesses in India’s growth story, they face challenges due to lack of credit and liquidity. The establishment of a dedicated bank catering specifically to their needs represents a major step forward in addressing credit shortages. Such an institution could provide tailored financial solutions that traditional banks often struggle to offer, thereby supporting MSMEs in accessing timely and affordable financing. A dedicated MSME bank, possibly structured as a hybrid public-private partnership, has the potential to enhance financial inclusion and empower small businesses across diverse sectors and regions. This is the time to come forward and advocate for initiatives that prioritize the growth and resilience of MSMEs. By fostering a supportive ecosystem through specialized financial institutions, we can unlock new opportunities for entrepreneurship, innovation, and sustainable economic development.”

As we celebrate International MSME Day, the voices of industry leaders remind us of the immense potential within the MSME sector. Through sustainable practices and collaborative efforts, MSMEs are well-positioned to drive economic growth, create job opportunities, and contribute to a more inclusive and environmentally friendly future.