Towards the MSME that asks for assistance on the services like ‘Business Accounting, Tax Filings, GST Calculation & Filing Support’, business support would arise as an important area. It is hard for MSMEs to maintain the quarterly GST and income tax filings within time because of a lower understanding of the needs.
An MSME Sentiment Survey would have been held by a fintech company called Kinara Capital, emphasizing the significant priorities of small business entrepreneurs in India. Through the input from 2600 formal (Micro, Small and Medium Enterprise) MSMEs that are Udyam-registered, and illustrate businesses across manufacturing, trading, and services sectors in Karnataka, Gujarat, Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu, and UT Puducherry the survey was performed.
According to the report, MSMEs want to grow their companies quickly and are searching for creative and comprehensive services to help them do so. The survey’s findings on Instant Financing, Supply Chain, and Business Services have three primary takeaways.
Business Support Services
MSMEs look to reputable accountants and tax professionals for advice and assistance with tax filing.
As a top non-financial services request of MSME, 30% of surveyed of them would ask for business accounting and GST filing support. With a share of 17% and 13%, MSMEs listed Business Accounting Services and GST Tax Calculation and GST Filing Support respectively.
Through Website Creation, Digital Platform Listings, and Onboarding on Online Trading Platforms 21% of MSMEs choose to improve their digital presence.
Nearly 15% of MSMEs opted for Website Creation and Digital Platform Visibility as their utmost priority and 6% wish to get listed on the MSME Trading portals like TReDS and GeM. Beyond that 27% is the rank of the website creation and Digital Platform Visibility which makes it the highest Non-Financial Services need.
Personal Finance Support particularly asking for guidance with insurance and investments is the demand of 9% of MSMEs. This is a reflection of the fact that many MSMEs report an average 20% rise in their incremental income creation as a result of being able to obtain formal credit to expand their businesses.
Quick Financing
In the financial services area, MSMEs’ top demand is for an Instant Line of Credit, while in the non-financial services category, Industry Networking is at the top of the list. Over 38% of MSMEs cite a lack of simple access to or non-availability of short-term credit as the key barrier to their growth as the largest challenge they encounter.
One out of every two surveyed MSMEs wants an Instant Line of Credit to help them with day-to-day business choices.
Read Also: All MSMEs Want New GST Rule in Respect of PPOB (Principal Place of Business)
Over half (55%) of the surveyed MSMEs opt for the instant line of credit as their major financial product choice for their businesses as per the survey, Bill Discounting products would be sought by 8% of MSMEs.
For MSME owners who need to take quick action, a line of credit can make routine business decisions easier. Examples include buying raw materials to fulfil an urgently needed large order, quickly adding workers for a seasonal product run, renovating the company’s space, or making unanticipated machine repairs.
Showing the enhancement in the growth of India economically, they seek the Instant Line of Credit which is effective from Manufacturing MSMEs, with more than 60% of them requesting this item.
16% of MSMEs favoured Flexible Repayment Products shall provide them with the option to incur Daily/Weekly Loan Payments, or Variable Loan Payments, on the basis of turnover of their business for the chosen time period.
Flexibility was ranked as the second most sought financial product attribute by MSMEs in the Trading sector, with a 15% preference.
Supply Chain Linkages
Industry Networking with their Supply Chain Ecosystem is vital for their growth stated by one-fourth of MSMEs.
MSMEs noted risks in the physical supply chain as well as difficulties in locating suitable buyers and sellers, especially because industry analysts estimate that less than 5% of India’s supply chain is digitized. Micro-MSMEs, in particular, suffer from freight logistics and local product transport expenses.
MSMEs are increasingly seeking complete support to help them build their businesses. Nearly a quarter (24%) of respondents said they would prefer assistance with Industry Networking, particularly with their supply chain ecosystem, to enhance access to buyers and sellers, and many said they were willing to pay for the service.
MSMEs perceive the absence of their own transport as a major supply chain problem. Despite the rapid economic development of India it severely has a shortage of truck and delivery drivers. 15% of people stated that they wish for a dedicated 4-wheeler commercial vehicle for their business and owning a 2-wheeler vehicle would be preferred by 10%, under a survey of respondents.
Among all sectors, the service sector was the most vociferous, with over 20% naming commercial vehicle loans as the second most critical concern to address the incapability to deliver finished products or raw materials to customers on time, which can significantly affect their turnover.
