Can India truly become a $7 trillion dollar economy by 2030 without a thriving SME ecosystem?
Not only thriving but also experiencing significant growth is what I would assert, as this is how SMEs can enhance their contributions, introduce fresh ideas, and further boost the economy. Bigger enterprises will mean more jobs for people, which will help the economy and individuals alike. When SMEs grow, they often use new technology and ideas, growing the entire ecosystem. Globally, 35% of jobs in the world can be attributed to SMEs whereas the segment accounts for only 21% of Indian jobs. It is imperative we start thinking on how we can enable and unlock the true potential of SMEs within Bharat.
How then does one improve this?
How can we build a narrative that encourages people to start up and SMEs to scale up?
The process is two steps. We need to first enable Young India to start up and create truly global businesses, and second, we need to enable today’s SMEs to grow through the right policy initiatives, and support at various fronts including finances and truly then can we unlock India’s potential of Atmanbirbhar and Make in India.
Define the true meaning of value creation
Often, entrepreneurship has been about valuation and not value creation. It has been about corner offices and not creating enough job opportunities. That needs to change as of yesterday. We need to enable our young minds to actually create SMEs and organizations that solve real-world challenges and create value at the individual, society, business, and then at economic level.
India today is at the forefront of technology and innovation, and is setting global standards when it comes to talent in AI, data science, and more. Look at what India has been able to drive through G20 focusing on global matters such as climate finance, or the Lifestyle for Environment campaign – these are true examples of value creation.
We have helped the world leapfrog into a digital-first era, where businesses are reinventing the wheel when it comes to business operations, go-to-market, internal organizational level practices, and more. This trend will only grow with a young and digitally native population.
It is crucial for us to really build through Young India, and Build for the Future.
Enabling Today’s SMEs to become tomorrow’s Enterprise
First and foremost, it is important not to misconstrue the meaning of growth and expansion. The right way to understand it is by fortifying its roots and giving back more to society. As SMEs grow into the biggest enterprises, a plethora of opportunities will open up. SMEs can become more potent growth engines when they evolve into larger businesses. They will be able to draw larger investments, adopt cutting-edge technology, and participate in international supply chains. This transformation has a wide-ranging impact. It promotes greater economic prosperity overall, increased export potential, and higher job opportunities.
This also seamlessly transitions into further enabling India’s ‘Make in India’ initiative. If we are able to turn today’s SMEs into larger enterprises, these organisations will be able to significantly contribute to domestic manufacturing and reduce dependency on imports. This, in turn, bolsters the national economy and fosters self-reliance. We have already seen, and are reaping the benefits of the China plus one strategy, and we can further accelerate growth if we can enable our SMEs to significantly contribute to domestic production along with opening up opportunities for global businesses.
This new wave of SME dynamism has the potential to invigorate the business ecosystem, constantly supporting units that provide quality products, solutions, and services at competitive prices, both in the domestic and foreign markets. domestic and global markets. Small businesses aren’t just part of the economy. They’re at the heart of it.
Small and medium-sized enterprises (MSMEs) are the backbone of India’s economy, and the country’s future depends on focusing on their growth. The Government of India has put in significant support measures over the last few years, and India needs more of them, especially now. Over the next decade, India will go from a developing economy to a developed one, and SMEs will play a pivotal role.
The essence of entrepreneurship and innovation should not be bound by the fear of growth, but rather should be celebrated and strategically employed. This would bring a wave of transformation and progress, ensuring the place at the head of the table for these enterprises, for economic growth and societal advancement.
Source: https://www.financialexpress.com/business/sme/cafe-sme/smes-can-help-india-truly-become-atmanirbhar/3253321/