How NBFCs can build stronger brands by partnering in MSME progress

Micro, small and medium enterprises (MSMEs) are the backbone of India’s economy — contributing nearly 30% to GDP and over 45% to exports. Spread across manufacturing, services, and trade, they employ crores of people and anchor economic resilience in towns and cities across the country.

Many of these enterprises are traditional, family-run businesses, often built over decades of experience and trust in their local markets. Their owners are deeply knowledgeable about their craft — be it engineering components, food processing, or packaging — yet, they often operate with limited exposure to formal management practices, financial planning tools, or emerging technologies.

For lenders and enablers serving this segment, the opportunity lies not just in financing growth, but in partnering for it.

From lenders to partners

Traditional marketing around loan products or interest rates may create awareness, but it doesn’t create trust. True brand equity in the MSME space comes when an NBFC positions itself as a partner in progress—one that helps entrepreneurs strengthen their business foundations, not just their balance sheets.

This means looking beyond finance—towards holistic capability-building. Many MSMEs face challenges in areas such as cash flow management, productivity improvements, workforce management, digital adoption, customer retention, and more. When an NBFC helps decode these aspects, it earns a place in the entrepreneur’s circle of trust.

An MSME that learns to manage costs better or leverage technology not only grows profitably but also becomes a stronger, lower-risk borrower.

Digital: The new classroom for MSMEs

Recently, digital platforms — especially YouTube — have emerged as powerful enablers of MSME education and engagement.

For many small business owners, YouTube has become a go-to learning medium because:

1. It uses audio-visual storytelling, which is easier to understand than text-heavy brochures or technical blogs.
2. Regional-language content breaks language barriers, enabling entrepreneurs to learn in their native language.
3. It allows for real-world demonstrations — explaining financial or business concepts through relatable examples, visuals, and voice.

A short explainer video in Hindi, Tamil, or Marathi on how to manage working capital or improve productivity connects far better than a printed ad or flyer. These videos are shared organically, replayed on demand, and consumed during the entrepreneur’s own time— creating deeper engagement and recall.

Compared to traditional mass media, digital channels are also more economical, measurable and personalised.

This shift towards knowledge-driven, video-led outreach is redefining how NBFCs communicate with MSMEs. It replaces one-way advertising with participatory learning — and that’s where real trust begins.

Knowledge as the new marketing

Forward-thinking NBFCs are realising that education and empowerment can be the most powerful branding tools. Sharing practical insights—through videos, webinars, or local workshops—on topics such as working capital management, manufacturing efficiency, supply chain, or adopting solar energy can make a tangible difference to entrepreneurs.

Regional-language content on YouTube or WhatsApp, short podcasts featuring local business stories, and workshops at industrial clusters can turn complex business lessons into relatable experiences.

Entrepreneurs often prefer hearing from peers who’ve walked the same path—a fellow manufacturer explaining how digitising payments improved cash flow can be far more inspiring than any advertisement.

This form of knowledge-led engagement humanises NBFC. It transforms it from a faceless lender into a mentor brand—one that listens, guides, and grows alongside its customers.

Trust: The real currency

In the MSME world, relationships often outweigh rates. Entrepreneurs value continuity, responsiveness, and advice from lenders who understand their business realities.

When an NBFC invests time in guiding and supporting them throughout the business cycle, it builds emotional equity that pricing alone cannot achieve.

Moreover, MSMEs that evolve with this kind of partnership tend to return for repeat business and advocate for the brand within their networks. Trust earned through knowledge and empathy is the most resilient form of brand loyalty.

Building a sustainable ecosystem

This shift from transactional to transformational engagement is vital for the future of MSME financing. Financial capital can fund growth, but knowledge capital fuels sustainable progress.

By supporting MSMEs with capability-building initiatives—from digital enablement to operational benchmarking and financial discipline—NBFCs help create more resilient and creditworthy borrowers. This, in turn, strengthens the broader ecosystem, reduces defaults, and supports inclusive economic growth.

For NBFCs, brand-building in the MSME segment is no longer about visibility—it’s about credibility, contribution, and continuity.

Entrepreneurs don’t just remember who lent them money; they remember who stood by them with insight and guidance.

The most powerful way to build brand awareness among MSMEs is to enable their progress — financially, operationally, and intellectually. When NBFCs invest in the holistic growth of entrepreneurs, they don’t just create customers; they form partnerships in progress.

(Tapan Sampat is the Head of Marketing & Digital at Profectus Capital, an RBI-registered non-banking financial company (NBFC) focused on empowering India’s micro, small, and medium enterprises.)