Majority MSMEs integrated with e-commerce see jump in sales and profits: Survey

Majority MSMEs integrated with e-commerce see jump in sales and profits: Survey

Oct 13, 2023

Girish Khurana

The annual survey of MSMEs by the economic policy think tank Indian Council for Research on International Economic Relations (ICRIER) says that technology may represent a survival threat rather than an opportunity for MSMEs unable to join e-commerce platforms in the country

The survey carried out between November 4, 2022, and January 20, 2023

The survey included 2,007 enterprises, of which 65 per cent were micro, 19 per cent were small, and the remaining 16 per cent were medium

At the time of the survey, 1,005 enterprises were already integrated with e-commerce platforms, while the remaining 1,002 were not integrated

With e-commerce platform integration, over 85 per cent of surveyed MSMEs reported an increase in their total sales and profit margins

Among integrated firms, 60.4 per cent reported a turnover of more than Rs 5 million compared to 47.6 per cent in the case of non-integrated firms

Significantly, among integrated firms, approximately 35.5 per cent reported a turnover between Rs 10 million and Rs 500 million

Among the non-integrated firms, the share of firms in the Rs 10-500 million turnover segment was considerably lower, at 15.6 per cent

Among the group of MSMEs that are engaged in exporting units, approximately 63 per cent reported being integrated with e-commerce platforms

Firms that are not integrated with e-commerce platforms are likely to find it more challenging to access markets at a time

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