In the wake of concerns about the future of the Indian economy, global data, insights and consulting company Kantar has revealed a report, that delves into understanding the Urban MSMEs' (Micro, Small and Medium Enterprises) outlook towards the economy and their willingness to invest in it in 2020. The study was conducted across 6000 MSMEs (1-500 employee organisations) across 35 cities in India.
The study suggests that about 46 per cent of Indian MSMEs maintain a positive expectation from the economy in 2020 and state their willingness to invest in their growing businesses. Classifying the MSMEs into four categories – Wave-riders, Fence-sitters, Safe-players and Fighters - the study provides insights on the readiness of these categories to invest in the economy.
Dubbed as Wave-riders, the 46 per cent segment has a buoyant outlook towards the economy and intends to invest too. Essentially comprising small businesses that use the internet extensively in their operations, the Wave-riders use new-age business tools like online payments, online marketing for customer outreach and are spread across Technology, Manufacturing, and Healthcare verticals.
At the other end of the spectrum, the Safe-players, contributing about 31 per cent, are essentially mid-sized businesses across traditional verticals like Travel, Trade, Transport and Logistics, Retail etc).
Comprising 10 per cent of the whole, Fence-sitters mark low engagement on the internet. Fighters, however, intend to invest despite the relatively poor economic outlook and therefore contribute to about 13 per cent of those who hold positive hopes from the economy. They comprise mostly small new businesses.
Talking about the study, Biswapriya Bhattacharjee, executive vice president, Insights Division, Kantar states, “It is interesting to view the Economic outlook through MSMEs' lens. This segment of the business is often considered the barometer of economic revival and the first impact of a change in the economy often shows up in these outfits. Given the relatively low mood of the economy currently, the MSMEs are maintaining a relatively strong and positive front in terms of their economic outlook for 2020.”
The findings are based on a study conducted across 6000 MSMEs with an employee base ranging between 1-500 and across 35 cities of India. The study covered a wide array of industries such as BFSI, Education, Healthcare, Retail, Manufacturing, IT, Travel, Transport, and logistics and Professional services. The study has been conducted face to face and has a representation of all key industry verticals. The respondents are business heads of organisations -owners, proprietors, chief executive officers, et cetera.