- Small and Medium Enterprises have long been the bedrock for our economy, contributing to an estimated 30% of GDP in FY20 and projected to contribute 50% by FY25 as per Govt of India estimates
- SMEs have leveraged their agile ways of working, their talent pool, ecosystems and an insurgent mindset for their successful progress. SMEs have seen strong traction for products with higher quality / distinctive attributes at more premium price points to capture a higher market share and also nudged loyal customers to buy directly from their storefronts and social media channels. Agility and innovation in Distribution and Cost effective and wider shelf space have helped progressive SMEs to grow from a small niche to expanding vertically and horizontally (portfolio) at a face pace
- A study conducted by YES Bank reveals that over 50 percent of digitally empowered SMEs improved their profits, operational efficiencies, as well as customer engagement. (Survey of 2,700 MSMEs across 20 industries 2019)
- The pandemic, though, has jolted the sector where penetration, consumption and spending patterns have changed, supply chains disrupted, some temporarily and some more permanently, leading to Demand Loss, Reach contraction, Portfolio Gaps and changing Competitive intensity
SME Growth Matrix and emerging challenges
How can DefiLeap Help
- As in this year of transition, pent-up demand would emerge and SMEs will need to set in motion a recovery phase by reopening, rebuilding and preparing for the future. It would involve radical thinking and configuration of their business model, to be prepared and knowledgeable as much as possible, on how to prioritise activities
- To move from resilience to resurgence, SMEs will need to take advantage of the consumer insights, agile decision making, economic growth tailwinds and technology leverage to deliver improved customer experience for a larger pie of the market. In addition, a realignment of business priorities and data based structured planning will enable SMEs to regain their competitive advantage
Growth Transformation Approach