In pics: How MSMEs are leveraging technology to get business back on track

SUMMARY

Here's a look at how MSMEs are leveraging technology to emerge on top amid the COVID-19 pandemic.

By Timsy Jaipuria Aug 18, 2020 11:14:08 AM IST (Published)

Micro, small and medium enterprises (MSMEs) are considered the back-bone for the Indian economy as they account for a major chunk of the country’s manufacturing and services eco system. While many of them are trying to adapt to the new normal, the going has been extremely tough. Here's a look at how MSMEs are leveraging technology to emerge on top amid the COVID-19 pandemic.

MSMEs across India are not functioning at pre COVID-19 levels as yet, primarily due to disruptions in the travel and supply lines. Small manufacturing enterprises, however, are now adapting to the new normal and are leaning towards technology to function efficiently and revive business. Take CEO of Ethnic Artwares Aashish Wadhawan -- a Greater Noida-based handicrafts exporter -- for instance, who is now monitoring operations at his Jodhpur factory via his phone and laptop.

Wadhawan said: "I used to travel to Jodhpur every week prior to the pandemic, but now -- post unlock India -- I am monitoring our facility virtually through my phone. I had over 100 labourers working and now only 50 of them have resumed work as they feel they’re safe in their villages. So far, we have paid salaries to all employees, but if they remaining do not turn up for work by the end of August, it will be tough for us to continue paying salaries."

While Wadhawan's weekly visits to his factory have been replaced by virtual monitoring, MSMEs are now using technology more effectively to reach out to clients. To pitch for orders to foreign clients, Wadhawan now provides virtual tours of the factory and products and has been sharing catalogues online with them.

He explained: "We are sharing PPTs, online catalogues, and even giving our clients virtual tours and attending webinars to ensure we continue with business. But as I am in a business of handicraft, detailing of my work and craftsmanship is the USP of our business. While we continue to get small orders, in some cases we are sending samples to clients, who are then placing more orders. But we are facing certain difficulties as handicraft items are mostly picked after the detailing of work is examined by touch and feel, so there are certain clients who we cannot convince to buy via virtual contact."

Nonetheless, technology has helped small enterprises bypass COVID-19 related disruptions to a large extent, and the government's intervention is like additional credit for MSMEs, who have been cushioned against the impact of the pandemic, but is not substantial.

Wadhawan further said, "We haven't taken credit loans extended by the government. Moratorium sounded okay, but once we came to know that it is not interest free, it did not make any business sense. Not just me, many of my friends in the business too have not taken the moratorium offered on repayment of loans, as we would end up paying more interest. Had government allowed a waiver of interest, then we would have probably evaluated and seen whether we should go for it or not."