Trade, import and export for MSMEs: A new small business survey from global shipping and logistics company UPS reported that small businesses in India have been steadily growing in the past two years, courtesy of exports. The survey said that 31 per cent of small businesses and 46 per cent of medium-sized businesses exported to three or more markets by 2022 up from single-digit growth of 9 per cent and 6 per cent respectively in 2020.
The survey also noted growth for women-led businesses with 74 per cent of women-led firms saw positive revenue growth in 2022, up considerably from 51 per cent in 2020.
The results were part of the second annual survey of over 4,700 SMB owners in 12 countries in the Asia Pacific region by UPS. The survey was carried out between February 4 and March 8, 2023.
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Importantly, SMBs were also looking to know how to make their operations and supply chains better for the planet as 57 per cent of respondents in India said they want to understand how to make their operations greener.
The survey also noted that 65 per cent of micro and small enterprises in India used some type of marketplace to sell their goods and services including 28 per cent of micro and small firms, and 24 per cent of medium firms which were omnichannel sellers.
In turn, e-commerce has been enabling Indian SMBs to engage in trade and access new markets. 52 per cent of firms in the survey said that use e-commerce intensively diversified their export markets in 2021-22.
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While there are plenty of reasons to be optimistic about the resiliency of small businesses in India, there are barriers that make it hard to grow, UPS said in a statement on the survey. Nearly half of the surveyed SMB exporters said that the quality of internet connections, duplication processes when shipping, and compliance with digital regulations were barriers to their growth.