The surge of in India is driving the growth of small and medium enterprises (SMEs), which in turn is contributing to new job opportunities and GDP contribution, a recent study shows.
A nation without business is a nation with multiple deficit. A study has been conducted jointly by KPMG & Snapdeal which concluded with a result stating that ecommerce in India is driving SME’s growth in India. Not only this, the report said that the ecommerce sector in India is expected to cross around $80 billion by year 2020.
The study says that around 85% of the total SMEs (Small and Medium Enterprises) who had modulated themselves with the ecommerce sphere believes that it is a cost effective channel of the growth of the sales. The SMEs who had recently adopted the online marketplace concept has shown a significant amount of increase in the revenue, 51% higher than earlier.
According to Mr. kunal Bahl, co-founder and chief executive of Snapdeal :
”At Snapdeal, we are working towards building the most impactful digital commerce ecosystem in the country and SMEs form the foundation of this ecosystem in many ways, With over 200,000 sellers operating on our platform, we felt the need to conduct a systematic unbiased study to identify opportunities and challenges to further accelerate the growth of the sector. We have taken a number of initiatives like seller training programmes, seller financing programmes – Capital Assist and Snapdeal Seller Advisor Programme, with an aim of creating life changing experiences for over one million sellers in the next three years. This study has given us deeper insights into what more we can do to enable small businesses become more successful online,”
Speciality of the ecommerce space is that it provide much more wider dimensional sphere to sell the products to the large audience. This has in turn affected both, nation (as it gives around 17 percent of the total GDP, 45 percent of the nation’s industrial output and 40 percent of the total exports)
According to Richard Rekhy, chief executive of KPMG India:
”The fast paced growth of the e-commerce industry in India represents an unprecedented opportunity for SMEs. We hope that the findings of this report will assist policymakers, industry bodies and e-commerce companies to strengthen the support ecosystem, which enables SMEs to ride the e-commerce growth wave successfully,”
This is of course a very motivating study for the investors and SMEs in India.