The e-commerce sales cycle is one way to understand MSMEs’ challenges. In an ideal world, a buyer would click on a link; a fulfillment system would select the product, fill out the customs form, and deliver the shipment to the buyer’s doorstep. However, in developing countries, this kind of convenience is still far away. The weaknesses of an MSME’s e-commerce sales cycle differ from country to country. In some countries, a weak link is in cross-border payment acceptance. Others fail to follow up on after-sales service.
MSMEs’ financial condition is fragile. Lending institutions often favor large enterprises over small firms because of the lower risks involved. Small firms have limited documentation to prove their viability, and lenders may have a difficult time distinguishing profitable projects from unprofitable ones. Moreover, because they are not able to negotiate advance payments with customers, they are often faced with payment delays.
In such a scenario, it does remain an open question how can MSMEs keep up with the market without becoming obsolete?
For MSMEs To Grow, They Need To:
Expand Internationally & Implement Good Governance
Many MSMEs have been domestically successful, but their potential was limited by the size of their local markets. In addition, SMEs often lack the resources necessary to conduct comprehensive market research. This can hinder a company’s ability to overcome these challenges. However, a global view of a business’s potential is possible if it is prepared to take on the challenges that will arise outside the local market.
Large companies may have an advantage in terms of organizational and business structures, but in reality, micro, small, and Nano enterprises are poorly structured across the country. Therefore, to increase their success, MSMEs should implement formality and good governance to strengthen their competitive advantage. By adopting good governance, SME operators can participate in public procurements, government services, and Public-Private Partnerships. For these aspects, it is imperative that MSMEs drum up their business through corporate reach-outs.
The Government has a number of policies to help MSMEs stay competitive and expand their market. The Government can help MSMEs digitally by providing financial support and easing red tape. It should also foster the rapid digitalization of MSMEs. By leveraging public-private partnerships and building ecosystems that attract investors, governments can help MSMEs stay ahead of the market.
Stay Updated with the Latest Marketing Trends
There are several marketing trends that are relevant for MSME businesses. While some are more relevant to certain types of businesses than others, many are applicable to MSMEs as well. For example, AI can be used for better business analytics and can help drive scale. MSMEs can also make use of big data analytics, which can help them better understand their users, allocate cashback, monitor supply and demand, and create a meaningful brand impact.
For MSMEs, digitalization has become crucial. To stay relevant in the digital era, MSMEs need to leverage data from various systems. These technologies include microservices, APIs, the OEM and partner ecosystem, and AI/ML. With an understanding of these trends, MSMEs can customize their road map and use the right technologies to achieve better business results.
Here are three marketing trends that MSMEs should focus on:
- Investing in digital infrastructure – The government is implementing policies to help MSME firms improve their IT infrastructure. This has increased their awareness of the importance of quality IT infrastructure. According to an ITC survey, MSME businesses still fall behind when it comes to web presence and email usage. By 2025, digitalization will play a key role in scale and agility. These changes will benefit MSMEs in multiple ways.
- Keeping up with the latest trends in the marketing environment – As the international market enters 2025, the demand for native products is expected to rise. This facilitates a significant opportunity for SMEs to expand and diversify their products. By enhancing the exports of MSMEs, foreign investors will likely be attracted to invest in them. This, in turn, will increase the return on investment. But in the short term, the outlook for the global economy remains bright.
- Grow by creating a digital visual presence – Digital marketing enables MSMEs to engage with their target audience and build direct relationships. It provides a range of marketing tools and communication channels that enable businesses to build a visual online presence. The presence of an MSME helps to build a reputation and trust among their target audience. A digital presence allows businesses to enter new markets and sell products or services across borders. There’s no better time than the present to make an impact.
Digital marketing is a dynamic and fluid environment where the ability to innovate is imperative. It requires continuous innovation and consistency. Cutting-edge technologies constantly disrupt the digital world and are coupled with digital marketing strategies to drive measurable results. The absolute aim of any business is to maximize sales, returns on investment, and cost per acquisition. Regardless of the business’s size, the ability to adapt to changing circumstances can drive growth and innovation for the business.
MSMEs should focus on maximizing their potential to build prosperous communities.
MSMEs can help bridge the formal-informal divide, foster growth and build thriving communities. Unfortunately, many face a variety of obstacles. These include inadequate access to capital, limited market size, and inhospitable policy environments. However, a number of large companies can help build a robust ecosystem to support MSMEs. In some cases, these companies can provide working capital at favorable terms. A recent study examining the impact of micro-enterprise development in developing countries found that the size of firms had a positive impact on turnover. This was true for all active enterprises as well as micro-units.
By focusing on the above-mentioned aspects, MSMEs can flourish ahead of time while helping the community around them grow more and more.