Pandemic boosts MSME online sales: report

The pandemic has led to an increase in the share of online sales for micro, small and medium-sized enterprises integrated with e-commerce platforms, thereby increasing their income and boosting hiring, according to a report.

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The survey-based report by ICRIER, a leading economic think tank, found digitalization to be a key coping mechanism for MSMEs to overcome mobility restrictions during the pandemic.

“The report suggests that MSMEs are increasingly adopting digital technologies, with online sales accounting for 27% of total sales of surveyed MSMEs in 2020-21, up sharply from 19% in 2019-20 and 12% in 2018-19. “said a statement.

MSMEs that have adopted e-commerce platforms have experienced increased sales, turnover and profits. It also led to an increase in hiring.

However, while e-commerce has been associated with better employment opportunities for MSMEs, the share of women in the workforce of surveyed companies has remained very low, according to the statement.

The report, “MSMEs Going Digital – Leveraging Technology to Sustain During the Covid-19 Crisis”, supported by a grant from Walmart, is the first to examine the effect of digitalization on MSMEs integrated into e-commerce platforms, during the pandemic.

This report presents a summary of the results of a survey of 1,537 MSME manufacturing units in 10 states. It captures the impact of e-commerce on the volume of business, supply chain linkages and employment of MSMEs integrated into e-commerce platforms.

The six sectors covered by the survey include sporting goods, toys, furniture, handicrafts, textiles, and processed and preserved foods.

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David A. Albanese