Google is making double efforts for Indian small and medium businesses to go digital
Small and medium businesses are the heart of the Indian economy. It is evaluated that around 22 per cent of Indian GDP is contributed by small and medium enterprises. Small and medium enterprises are known as the engine of growth for India. It is commendable to note that despite the lack of support from earlier governments and lack of infrastructure, small and medium industries have shown tremendous growth. It is estimated that forty per cent of total India’s exports come from small and medium factories. These firms have a pivotal role in lessening unemployment, removing poverty and inequalities of income. One of the significant benefits of small and medium industries is that the start-up capital and investment is significantly less, as compared to big firms. The finance for starting small firms is readily available. SME’s are governed by the original Act of 2006, which envisaged that micro, small and medium factories and encouraged them to compete ideally. Low cost and low amount of loans for business can be easily obtained using this Act practically. A new amendment was introduced known as the MSME Development ( Amendment ) Bill, 2018, but faced a lot of opposition from political parties and business bodies. In this amendment, small and medium businesses are defined as per their turnover. If the turnover of the firm is five crores, it is a micro-enterprise. If your turnover is between five and seventy-five crores, then it is a small enterprise market, and for turnover ranging from seventy-five to two hundred and fifty crores, it is a medium-firm. Using this Act, the authorities have introduced subsidies, schemes, SME loans, incentives. If your firm registers through this Act, then you can avail the following benefits.
Bank loans and small business loans can be easily sanctioned.
Meagre interest rates from business funding and SME loans.
Excise duty exemptions.
Direct tax laws exemptions.
Lots of subsidies in taxes.
Subsidies in power tariffs.
Subsidies in capital investment.
Realizing the immense potential which small and medium enterprises provide, Google India has decided to commit heavily to assist small and medium businesses to adjust to the challenging economic environment, and adapt to the consumer’s new behaviour. In this strategy, users can discover small firms on Google Search and Maps. This strategy is following the “ Grow with Google Small Business Hub’’ principle. There will be a partnership between Google and Instamojo and Zoho. Google India has also made a partnership with Swiggy and Dunzo, by considering the requirements of various businesses, to fast track the process of onboarding and provide more support to small firms, to accepting online orders, and allow delivery logistics. Google India launched this strategy in response to the feedback from SME’s covered in the little business research, conducted by Google Kantar. As per research, many firms face losses due to low customer demand and fixed cost payment.
Statistics state that there are approx five crore small and medium firms in the country right now, out of which approximately half have been digitized. They have reported a massive increase in sales, after digitizing. Using online retail shops, small firms, which are present in distant parts of the country can also reach the countrywide market. Working capital loans are also available in different parts of the nation. It has been observed that sales have doubled for firms using online marketing, in comparison to offline firms. The main reason is that broadband rates in the country are one of the lowest in the world and the internet has come to every part of the nation. In 2022, there were will be approximately seventy crore smartphone users in the country. So, small industries can directly market their products to the consumers, thus eliminating the requirement of intermediaries. Once, this occurs, the bottom line of these firms will be significantly enhanced, leading them to make more investments and create more jobs. You can also sell your products using Facebook Messenger. New portals like Government E-Marketplace, are also making these firms more powerful and enable them to scale their operations. These firms will now be easily able to bag government projects, by listing their services and products on the internet, which was earlier restricted to big firms. The various benefits of small and medium enterprises are listed as follows.
Lower rate of poverty.
The lower-income gap between rural and urban areas and reduce migration.
Exports are enhanced and also regional development.
People’s purchasing power is greatly enhanced.
In this blog, readers will get adequate information as to why Google India is investing so much money in assisting Indian small and business enterprises to go digital. There are umpteen benefits once all these firms get digitalized, with some estimates stating that GDP growth can be enhanced up to two per cent.