SME Trends for 2022: New Tech and Giant expectations – Express Computer
By Winny Patro, CEO & Co-Founder, Recodent
MSMEs have played a crucial part in shaping the country’s economy in the past plus present. Especially, when the COVID-19 pandemic induced a downfall in the economy, it was the particular MSME sector that contributed immensely to India’s economic rebound. The growth engine of the country, earlier that was set in traditional methods, has now well-adopted tech. There are some great expectations from the SME industry, this year and the next few in order to come.
The particular MSME business in itself has shown signs of growth and has bounced back with technology developments to support them. When the particular pandemic first hit, the industry was grappling to ensure operations despite the lockdown. In a short span of two years, the revival and fast growth have put MSMEs at the particular forefront, leaving them with excellent expectations in order to fulfill, as they have new tech in their power to bring radical change in order to India’s financial performance.
Here are some of the SME trends within 2022
Data backed decision making
The adoption associated with technology in the MSME field has shown businesses that the right and intelligent decisions are made with facts. In their case, data and analytics easily display the insights that will prove to be crucial in making sound business decisions. Hence, the year 2022 and beyond will largely witness further tech adoption for making the most thought of plus planned business activities. Technology is more accessible than ever, and the trends display that will SMEs are usually here to completely revamp the way they conduct their own businesses.
New plus improved cash flow
For a long time, MSMEs were faced with a financial crunch which was a major hindrance to development. Disrupted or delayed payments are the single factor that derails the progress, and sometimes even the day-to-day operations of a small business. With tech, SMEs will now be able to track their stuck payments, send easy reminders, and further use a tech-friendly accounting or even management system that helps them plan finances, and crucial company aspects well in advance. Once a business cracks a healthy and timely cash flow, they are in a much better position to conduct business plus ensure well-timed growth.
Organised finances and support
The particular MSME industry is on a successful path to growth and by using technology to aid their business activities, the particular MSME industry will begin to see a growth in its capital. Acquiring loans and seeking investment will become easier and more rewarding with the right use of technologies to maintain their particular records, plus accounts. An organised company using the knowledge of the right credit scores, the importance of it will surely be in a better placement to take loans from banks and financial institutions.
Over the next five years, the government intends to roll out a 6, 000-crore-worth program for MSMEs. As part of this rollout, the Emergency Credit Line Guarantee Scheme, or ECLGS, will be extended up to March 2023. Budget allocation for MSMEs in FY22 more than doubled in order to Rs. 15, 700 crores (US$ 2. 14 billion) vis-à-vis Rs. 7, 572 crores (US$ 1 . 03 billion) inside FY21. Along with such government initiatives, private lending institutions have also begun to show a deep interest in providing capital to MSMEs.
The boom of new businesses
India is the thriving and rapidly growing ecosystem of startups and entrepreneurs who are solving problems plus making successful businesses. The particular year as well as the decade will witness the particular emergence of many such online companies and entrepreneurial ventures. The MSME market will similarly experience a complete overhaul with all the birth associated with businesses inside times to come.
Implementation of Trade Credit Insurance
The Insurance Regulatory & Development Authority of India (IRDAI) drafted guidelines with regard to general insurance companies to come up along with trade credit insurance products with customised covers regarding Small and Medium Enterprises (SMEs) plus Micro, Small, and Medium Enterprises (MSMEs). The latest guidelines are to enable general insurers to offer trade credit score insurance covers to licensed banks and other financial institutions. The adoption of trade credit insurance will largely be adopted in 2022 by the micro, small and medium companies.