The Indian economy is classified as a mixed economy, where the public and private sectors exist, function and prosper in harmony. In recent years, the Indian economy in recent years has risen to remarkable heights, thus registering its presence in the global economic landscape. India is currently the fifth largest economy in the world by nominal gross domestic product (GDP) and the third largest by purchasing power parity (PPP). It should be noted that small and medium enterprises are an integral part of the Indian economic paradigm. After agriculture, small businesses are the second largest provider of employment in the Indian economy. Small businesses generate the most employment opportunities per unit of capital invested compared to large-scale industries. 95% of the industrial units in the Indian economy comprise small-scale enterprises, and 40% of the total industrial output is generated by small-scale enterprises. The vision of India becoming a $5 trillion economy by 2025 hinges on the success of small and medium-sized businesses. Since small-scale business enterprises form an important part of the Indian economy, their growth is crucial to India’s success as an economic powerhouse.
In recent decades, the Indian government has duly realized the importance and caliber of small-scale industry and various schemes and monetary schemes have been introduced to provide tax benefits to small and medium enterprises. However, there are several obstacles that small businesses face in contemporary times. The persistent flow of adequate funds forms the foundation of any business enterprise. The ability to obtain sanctioned loans is often a challenge for small businesses due to lower creditworthiness and lack of formal documents required for the mentioned process. The lack of digitization in the age of the electronic revolution and fraud and payment delays also hamper the routine functions of small and medium-sized businesses. Fortunately, there are credit granting companies, micro-savings platforms, and various lending agencies in the market to help small businesses prosper by providing easy loans, convenient access to finances without the hassle of paperwork, etc.
Mentioned below are the companies that help small businesses prosper in India:
1)castle: The persistent flow of finance forms the foundation of any business enterprise. Timely, smooth and convenient monetary transactions ensure the correct execution of business plans and strategies. Any type of inauthentic or fraudulent activity can be a huge threat to business security. Potential fraud violates a company’s privacy and thus impedes business progress. Fortunately, there are online platforms that can protect businesses, especially small ones, from such pernicious fraud. Castler is an online platform that harnesses technology, experience, and innovation to make escrow services more accessible and convenient for businesses and consumers alike by digitizing the escrow process. The platform protects businesses with its dedicated multi-party protection system and different levels of authentication.
Castler is a boon to the small-scale industry as it provides multiple services in addition to fraud protection, such as digital lending, business lending, money pooling, dealer distribution, software escrow, logistics, etc. The platform has helped several companies by securing money in their escrow amounting to INR 2,500 crore. Backed by major banks, Castler aims to provide fast, smart and convenient trading solutions to its clients with services such as real-time notifications, escrow guarantee, real-time dashboard access, lowest cost solution, convenient signing of escrow agreements, etc. With its abundant business benefits and strong fraud immunity, Castler is one of the best online platforms for small businesses to secure their businesses against fraud and financially as well.
two)protium: Monetary funds are the basic requirement for business progression. Procurement of finances can be a challenge at times for small businesses due to reasons like lack of formal documents, etc. Protium is a boon for small businesses and also ambitious individuals who need easy loans to grow their businesses. Protium is an engineering-driven Pan India lending company with a keen eye on risk management that empowers small and medium-sized businesses by conveniently lending them. Founded with the intense vision to incorporate the latest technology to speed up and improve money lending solutions, Protium will have 100 branches operating in 65 cities in 17 states in India by the end of FY 2022.
Operating under the subtitles Protium Finance, Protium Money and Protium Sakshara, the platform provides easy loans of any amount from INR 10,000 up to INR 5 Crore to small and medium-sized businesses, aspiring individuals and educational institutions across India. With specialized loan services in MSMEs/business finance with machinery and equipment finance, Protium is the first choice of small businesses across India to get easily sanctioned loans. The platform has successfully disbursed loans of INR 750+ Crore to Small and Medium Enterprises (SMEs) across India during the turbulent times of the pandemic to revive small businesses. Protium provides loans of up to 300 lakhs and finances up to 80% of costs to encourage small and medium businesses. The financial lending brand is on a mission to create powerful and transformative financial solutions to drive the ambitions of New India and its fledgling businesses. Protium, as a lending platform with its brand philosophy of building a strong and stable foundation by nurturing the ambitions of booming businesses, is a boon to small-scale industries.
3)IndiaMART: The mutually beneficial coordination of the supply and demand equation is necessary for the success of any business enterprise. Especially in the case of small-scale industries, friendly correspondence between buyers and suppliers leads to profit generation. Finding a suitable buyer for small-scale business products can sometimes be a challenge for entrepreneurs. IndiaMART is the largest online B2B marketplace in India that connects buyers with suppliers and thus provides optimal services to small-scale industries. A business can present its products or services on IndiaMART and can find suitable buyers conveniently on the platform. Based in Noida, the platform was launched in 1996 as a website directory for Delhi-NCR clients. IndiaMART InterMESH Ltd. is an Indian e-commerce company that offers B2B and customer-to-customer sales services through its web portal.
IndiaMART is a popular online platform among the fraternity of small-scale buyers and suppliers due to its efficient and convenient service model. IndiaMART has recorded traffic of 257 million and total business inquiries of 115 million during the first quarter of FY23. Vendor storefronts grew to 7.2 million, an increase of 10% YoY (year over year) and vendors of paid subscription grew 23% year-on-year to 179,260 with a net addition of 9,936 paid subscription providers during the quarter. The platform’s successful sales, promotions and marketing strategies have generated huge profits for companies. As a platform that connects buyers and sellers across borders and time zones through trading solutions, IndiaMART has helped numerous small and medium-sized businesses prosper and generate considerable income.
4)digichal: In an era of technological evolution and digitization, any company must be digitally sound and up-to-date in order to operate the business efficiently. The business ecosystem in the contemporary era is highly advanced and technology-oriented. It is the indispensable need of the hour for every aspiring person or business to catch up with ever-evolving technology. Founded in 2021, DigiChal is an online platform that caters to all the digital needs of small businesses and offline store owners. The platform is cleverly designed to manage and track the company’s monetary transactions. DigiChal fosters a brand vision to become a digital SAATHI (partner) of small businesses by providing them with cost-effective and competent services.
DigiChal offers a variety of services such as online order acceptance and delivery, digital ledger, store insurance, convenient financing with the best interest rates, online payments via QR codes, store branding, coupon creation custom discount etc. The platform has the ideology of making small businesses on a large scale as an integral part of the digital economy. With so many independent companies with small and medium scale trading companies coming together in an innovative and progressive digital platform that is made for India and made in India.
5) Meesho: Social networks abound in contemporary times. From being the best source to learning about different skill sets to minting money online, social media has provided various opportunities for people and businesses to thrive. Small businesses use social media to promote their business successfully. Founded in 2015, Meesho is a platform that helps an individual or small-scale company to start and grow their online business without investment. The platform is largely based on the concept of reselling goods. As a reseller, a company or an individual can share the products listed on the Meesho app, either on their network or on social media platforms like Facebook, Instagram, WhatsApp, etc. and you can get a part of the profit with each sale.
There are more than 1 Lakh of beauty, fashion and lifestyle products featured on Meesho through which considerable profits can be made. Products are provided by vendors who have a relationship with Meesho. Meesho offers the perfect platform for small businesses to start their entrepreneurial journey by establishing an online presence at no cost. Nearly 90% of the reseller platform users are ambitious women from tier 2 and 3 cities in India who aspire to start their businesses. Meesho, as an online e-commerce platform, has provided an opportunity and freedom to individuals and companies who want to venture into the business landscape without investment.
The overall success of an economy depends on the progression of its subsectors. Small-scale industry forms an important part of the Indian economy, and its success is critical to the prosperity of the entire nation. In an era of evolving technology and digitization, the aforementioned platforms have transformed the way small businesses operate, marking the economic and technological progression of small and medium-sized businesses.