India’s Micro, Small, and Medium Enterprises (MSMEs) stand as the foundation of the nation’s economic resilience—fuelling GDP growth, creating employment, and driving innovation across industries. As India emerges as a global hub for manufacturing and services, MSMEs are riding a wave of digital adoption and government support. Yet, despite the promise of progress, the sector continues to grapple with significant challenges that threaten its long-term sustainability.
A recent report titled “Business Perspective of MSMEs” by Borzo (formerly WeFast), a global intra-city delivery service, dives deep into the mindset of MSMEs across India. The report reveals alarming statistics: more than 61,000 MSMEs shut down by November 2024, with 12,000 closures in just four months. This highlights the urgency of identifying the barriers these businesses face.
Covering over 20 cities including Delhi, Mumbai, Bengaluru, Hyderabad, Jaipur, and Pune, the study captures insights from both Tier I and Tier II markets. It explores MSMEs’ understanding of government schemes, their profitability concerns, and the growing impact of quick commerce and automation on operations. The findings present a compelling snapshot of the sector’s current pulse—offering data-driven direction for stakeholders to support its evolution and success.
Key findings: A comprehensive snapshot
The report categorises its insights into five key areas: Business Overview, Challenges, Supply Chain (Logistics and Quick Commerce), Awareness and Outlook, and Automation.
1. Business overview
The survey captures the demographic and operational diversity of Indian MSMEs, offering a clear view of their scale, sectors, and geographic presence.
2. Challenges
MSMEs grapple with a multitude of challenges, ranging from operational hurdles to financial constraints and the pervasive impact of inflation.
3. Supply chain – Logistics and quick commerce
The report underscores the critical role of efficient logistics and the growing demand for quick commerce in the MSME landscape.
4. Awareness and outlook
MSMEs exhibit a growing awareness of government support schemes and maintain a positive outlook for future growth.
5. Automation
While the majority of MSMEs are open to automation, significant hurdles in affordability and training persist.
MSMEs, especially those in Tier 2 and Tier 3 cities, are playing a pivotal role in driving India’s economic transformation. Despite challenges like limited access to finance, rising costs, and talent shortages, they continue to adapt with resilience—embracing automation, adopting innovative delivery models, and leveraging government initiatives.
Highlighting this momentum, Alina Kisina, CEO, Borzo, emphasised the growing need for robust logistics solutions as MSMEs scale up to meet evolving market demands. With the right support ecosystem, these enterprises are well-positioned to seize new opportunities and fuel inclusive growth.
