Small businesses in the country maintain a positive outlook for the future in terms of business confidence and employment growth, a joint report by Facebook, OECD and World Bank today said. Amongst the businesses surveyed, 48 per cent of the small and medium enterprises (SMEs) are positive about the current state, while 62 per cent are positive about the future.
Also, while 28 per cent of the SMEs surveyed reported an increase in number of employees in the last six months, 56 per cent anticipate growth in number of employees in the next six months. This study aims to understand the sentiment, activities, and challenges faced by the SMEs.
Attracting customers, maintaining profitability and increasing revenue were highlighted as top business challenges by the SMEs.
Small businesses are also capitalising on Digital India opportunities. The report found that the more confident the business, the more likely is the use of online tools by them.
“The most common uses of online tools were to show products/services (61 per cent); advertise to potential new customers (60 per cent) and communicate with customers and suppliers (55 per cent),” it said.
Ankhi Das, Director of Public Policy for Facebook India and South Asia, said given the positive confidence and outlook shown in India, small businesses are clearly capitalising on today’s digital opportunities.
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“The more we can understand those connections and how they can fuel economic growth, the more we can help,” she added.
Small businesses employ close to 40 per cent of India’s workforce, contribute 45 per cent to India’s manufacturing output and nearly 8 per cent of the country’s GDP.