India has been pivotal for world trade for centuries now! With the advent of the British, the sheen diminished significantly. Over the last few decades India has made a strong comeback with forays into international segments and economies. Indian SMEs, I sense, will be the driving force in the years to come, leading a brand new India into International prominence. Albeit this fact, our SMEs dabble with multiple issues ranging from being able to seamlessly transact online, to raising working capital to keeping abreast with technologies and services that allow for a smoother and more effective running of their business. Multiple researches into the matter further highlight the fact that an average SME fights a losing battle with the aforementioned issues along with a host of other issues that take importance over the basic fact of running their business.
India, with all its diversity, presents a multitude of complications in free trade. Firstly, there is the issue of trust which forms a barrier when the north wants to engage with the south or the east with the west. Secondly, there is a huge gap in the online MSME and B2B Buying and Selling space. The traditional methods and current B2B scenarios that have been prevalent within the MSME eco-system severely hamper and complicate the day of an MSME by forcing employment of multiple people to send and receive RFQs and RFPs all day long. Append the effort and time spent to sieve through the ‘leads’ that one receives through channels; the time spent on making a horde of calls to all those ‘leads’ while eventually realizing that most of it are dead-ends! All this resulting in a cardinal waste of time, money and effort!
And then there is the ever present problem of raising the right amounts of working capital. Let’s face it! Banks don’t fund the projects in time and in most cases it’s like reaching the port when the ship has sailed! Our banking policies don’t offer much in terms of quick disbursals to fund or facilitate quick trade. I would like to believe otherwise, but our current eco-system does not look promising to enable our smaller and more capable SMEs to punch above their weight!
India is growing rapidly and to enable the SMEs to keep pace, it is highly imperative that someone takes up the mantle of engaging, enabling and empowering our MSMEs to attain their true potential and effectively optimize their time, effort and manpower. The systems that govern and direct the operations of a MSME need to be simplified. The IT boom that India experienced in the early 2000s was significantly driven by the colossal outsourcing drive that MNCs all across the globe undertook to reduce their operating expenses. If the MNCs can do it, why not our good ol’ Indian MSMEs??
The use of e-commerce to facilitate and increase sales needs to be adopted if our MSMEs need to find that sweet spot of profitability. The ability to seamlessly juggle between traditional and digital methodologies of generating revenue is key; add the probability of receiving funds at the right time to substantiate increase in orders, we would have then issued our MSMEs licenses to punch above their weights; and believe you me, punch we can; with venom and pugnacity while taking on the mights of overseas companies!
While still on the topic, let me quickly address the issue of redundant manpower in today’s MSME businesses. Statistics say that over 76% of our MSMEs hire workforce to perform defunct activities of calling, responding to mails (read RFPs & RFQs) which generally result in 0.03% success. This sad truth, unfortunately, bleeds into e-commerce as the current eco-system does not recognize or screen the fact that ‘leads’ are not e-commerce. The redundancy of manpower can be optimized by partnering with specialist companies to create, manage and drive online traffic and business. The access to digital methodologies can be flawlessly embedded into traditional businesses by e-commerce speacialists that help create a digital presence for businesses, thereby increasing the probability of greater revenues without any significant cost-impact on MSMEs. Sounds like music right?! This is possible and is possible right now!
In this complex web of interdependence, imagine a platform that could simply cut the time, money and effort spent on non-business activities.
GlocalBazaar aims at eradicating barriers between B2B bulk buying and selling while ensuring that every MSME has a fair shot at success and growth! How? Stay tuned on how our MSMEs can turn things around, piece-by-piece!!
Hmmm…or just begin by stopping by at www.glocalbazaar.com