There is no universal definition of a micro-SME, however, in most of the world’s developing high growth economies they are widely accepted to be companies that have between 1 and 10 employees.
micro-SMEs make a significant contribution to the global economy and local communities around the world, accounting for two thirds of the formal non-agricultural private employment in developing countries and contributing around 35% of GDP in the high growth countries Accloud is focused on.
India is one of the fastest growing major economy in the world, with in excess of 51 million micro-SMEs registered, many of which cannot contribute to the formal economy due to a lack of connectivity and business services support.
Opportunity in India
The majority of micro-SMEs in India have less than 10 employees, necessitating the need for easy to use software that doesn’t require advanced skills:
micro-SMEs enterprises: <10 employees
of the workforce employed by Micro-SMEs, but only represent 17% of GDP
smart phone users – the second highest number in the world and growing
micro-SMEs in India have the potential to create jobs, alleviate poverty and contribute to global GDP, however, they face a multitude of challenges which impede growth. These include:
- Limited access to capital
- Geographical distance and limited resources inhibit access markets
- Lack of easy and affordable technology limits ability to trade online
- Limited purchasing power and access to larger contracts leads to selling below cost
At the same time, the Indian Government is taking steps to introduce the latest digital technologies to the market:
- Make in India
a major initiative to facilitate investment, foster innovation, enhance skills development, and build best-in-class manufacturing infrastructure
- Digital India
a flagship programme that aims to transform India into a digitally empowered society and knowledge economy, for example through extending Wi-Fi to remote areas
- Skill India
tailored programmes to help create human resources for the e-commerce industry and encourage companies to invest in professional development of their workers