India's Micro, Small, and Medium Enterprises (MSMEs) are undeniably the backbone of the economy, contributing 30 percent to India's GDP, providing one-third of manufacturing output, supporting over 120 million jobs, and accounting for more than half of its exports. However, public perception often undervalues them.
In an insightful interaction with journalist Vivek Law, Shachindra Nath, Founder of UGRO Capital, shed light on the evolving landscape of India’s MSME sector.
Nath highlighted UGRO's campaign, "Bharosa MSME Par", which evolved from "MSME Achha Hai". This shift aims to build public confidence, challenging the common belief that smaller companies are less reliable or offer inferior quality. He urged consumers to trust local entrepreneurs, who often provide better quality, service, and a stronger local connection than imported goods.- rehash the headline
UGRO's commitment to MSME growth is evidenced by their social impact. Their third annual report, created with Dun & Bradstreet, reveals the direct creation of over 10,000 new jobs in the past year alone through their lending activities. Nath shared inspiring examples, like supporting a 130-year-old perfume maker from UP and a woman entrepreneur creating Tanjore paintings, whose businesses grew threefold after receiving UGRO’s support and orders.
While access to capital has improved, Nath noted that the biggest challenge now is marketing and market access for MSMEs. He emphasised that high-end digitisation isn't always necessary; fostering a local ecosystem where products are consumed locally is key.
Challenges faced by MSMEs, particularly for women entrepreneurs. Nath highlighted the dual burden of managing home and business, advocating for tailored credit methodologies and a supportive societal ecosystem. The trend of first-time entrepreneurs is also rising, with 40 percent of MSMEs in their report being first-generation, signalling a promising entrepreneurial wave, though initial capital remains a hurdle for those without family business backgrounds.
On Environmental, Social, and Governance (ESG), Nath acknowledged the gap between awareness and action. He explained how UGRO incentivises eco-friendly practices, like offering 8-year rooftop solar loans, making solar adoption economically viable by aligning EMI with existing electricity bills.
This dialogue underscores that small interventions, when scaled appropriately, can generate substantial employment and drive India's aspirational journey towards self-reliance. It’s a powerful call for collective trust and support for our local MSMEs.
