“Startups come with crazy disruptive ideas and MSMEs have scores of different ideas on aspects as they have been in the industry longer. When both converge, a new line of business is bound to come up. In the longer run, it will lead to reinventing the entire business,” Narasimhan Elangovan, Partner at Ken & Co Chartered Accountants elucidated at CII’s Virtual Conference on ‘The Financial Strategy for MSMEs for Business Continuity.’
Elaborating additional on his level, Elangovan stated that know-how needs to be utilized in a extra fruitful method and gave examples of 3D printing, digital reality-based design, drone and autonomous transport, AI and ML and Internet of Things (IoT) that can help revolutionise the sport. “Try as much as possible to collaborate. Focus on mergers, joint development agreements, sector specific reforms and the like. Unless we collaborate, we cannot fight this situation,” he asserted.
In sync with Elangovan’s views is transit promoting firm CASHurDRIVE (CUD) which has been in the enterprise for over 10 years and had collaborated with Uber Cabs earlier this yr. The partnership was geared toward providing extra incomes alternatives for drivers through Out Of Home (OOH) promoting on cabs.
Raghu Khanna, CEO and Founder, CASHurDRIVE says that the market has been badly hit because of the corona pandemic and therefore, the focus ought to now be on digital development. “It is a hard time for everyone. MSMEs and startups in the advertising arena have been planning on growing digitally. At this time, everyone will have to suffer a little, be it a startup or a big company, but eventually this shall pass too. Everybody should focus on digital as it is the only platform that is still going on,” he stated.
Presently the firm has launched CUD Medicare to supply healthcare merchandise. Collaborations proceed with a number of distributors and SMEs for merchandise, provides, packaging and deliveries. “Even in this chaos, vehicles are an essential part and transportation of goods is required. So, by launching products like face guard, car cockpit, bike covers and many more, we just want people to take proper precautions and stay safe,” Khanna added.
Besides such partnerships, consultants highlighted the methods by which MSMEs can draw up a prudent monetary technique throughout such robust occasions. Elangovan instructed that since most MSMEs have an enormous mounted value, the intention must be to see if such mounted prices can be transformed to variable prices. “For instance, MSMEs can pay rent to landlords based not on a per month amount, but on the number of units making sales. I think this can help. That’s what online cloud solution platforms are also doing. They rent out their website where you can pay rent on a monthly basis, only for the extent to which you use it,” he added.
Some other points floated throughout the dialogue included discount of procurement prices by tie ups with entrepreneurs and group orders, conserving liquidity by curbing inventories throughout the worth chain and figuring out whether or not assets invested in private belongings of the proprietor must be introduced into the enterprise as fairness.
The dialogue additionally hovered round the prescribed well being and hygiene measures which have to be enforced strictly by the sector for higher efficiencies.
Industry consultants unanimously agreed that it is just innovation that can drive the enterprise ahead for MSMEs and it must be stepped up greater than ever earlier than.
The other attendees of the digital convention included Abhishek Choudhary, Area Channel Head – Eastern Region, SBI General Insurance Co; Dhaval Radia, Co-founder, Rupyz.com; Sanjukta Mehrotra, Associate Vice President, Product Marketing, Aviva Life Insurance Company India and Sujata Ahlawat, VP and Head – Direct to Customer Interactive, TransUnion CIBIL.