In a recent announcement by the GST Council, the compliance requirements for SMEs has been eased down further which indeed is a relief and good news for SMEs. Earlier what the threshold of sales was capped at Rs. 20 lakhs has now been capped at Rs. 40 lakhs. These are all driving factors for SMEs to perform better than before which are a sign of boost for the Indian Economy. Likewise, there are a series of initiatives brought about by the Government of India intended at lessening the limitations confronted by SMEs. Mentioned below are some of the trends and avenues that will drive the SMEs this year.
Increase in large-scale digitization
Although some of the SMEs experienced the value of going digital as fruitful, this year most of them are going to adopt digitization because of the immense benefits that this platform offers. Innovative solutions and automation in areas of e-commerce, business finance, payments, and customer service are making them go smoother. This large scale adoption of digitization will enable SMEs to stay abreast with the rapidly-changing market, improve on efficiency, curtail the cost of production, and lessen manufacturing defects. This will not only help them to meet international quality standards but they will be able to maintain a strong foothold with other global market suppliers.
Increase in networking opportunities
Digital networking will become more and more accepted by SMEs for its multitude benefits like friendship, generation of referrals, enhanced business opportunities, increased confidence, knowledge sharing and going in for global partnerships with an intention of cross-border trade with each other.
Easy obtaining of working capital
With the latest initiatives from the Government of India in favor of SMEs, SMEs can obtain business finance more easily than before. Getting approval of loans online in less than an hour is one such initiative. Most of the top banks and financial companies are finding new and innovative ways of assessing SMEs better. They are investing in value addition to the SME community. Other ways of obtaining working capital are from lending sources like merchant cash advance, factoring, and online lenders.
Increase in the use of smartphones
Today nearly every individual in India holds a smartphone. This scenario has paved a large prospect for SMEs, who will increasingly adopt the qualities in integrating m-commerce or try to attract and retain customers using a mobile platform. Because of the ubiquity and affordability of smartphones, SME owners are expected to adopt smartphones more for their daily dealings as an intricate set-up is not needed carrying all transactions.
Investing in cyber-security
SMEs are getting more conscious and literate on the need for Cyber-security and are therefore investing in this area to have them implemented. They very well know that an attack by ransomware may bring about an end in their business. So securing and safeguarding their digital assets will become a crucial concern in 2019.
With the advent of new avenues that are opening up for SMEs, the year 2019 is expected to be more promising and hopeful for India’s strong SME community.