New Delhi : For India’s MSMEs, growth is no longer only
about expanding production or investing in new machinery. As technology,
customer expectations and business models continue to evolve, enterprises also
need skilled people and timely access to finance to turn opportunities into
sustainable growth.
The latest episodes of SIDBI MSME Samvaad explore two important
enablers of this journey - skilling and access to finance- and how both
can help MSMEs strengthen their businesses and prepare for the future.
When Technology Changes, Skills Must Keep Pace
Automation, digitalisation and new technologies are changing the way
businesses operate. But investing in new machinery or technology is only one
part of the equation. The people who operate and manage these resources need
the right skills to make the investment count.
For MSMEs, skill requirements can vary by sector, size, workforce, and
level of technology adoption. Identifying these gaps can help enterprises focus
their training efforts where they matter most.
Technology and digital skills, quality-focused processes and people
leadership are emerging as important capabilities for
growing enterprises. And as a business moves from micro to small and then
medium scale, continuous learning becomes increasingly important.
From Learning to Doing: Building a Stronger Skilling Ecosystem
India’s skilling ecosystem provides MSMEs, entrepreneurs and workers
with several avenues to build new capabilities. Organisations such as the National
Skill Development Corporation (NSDC), Sector Skill Councils and
entrepreneurship development organisations support training across sectors.
Digital platforms such as the Skill India Digital Hub also
provide opportunities to discover courses, undertake training and access
certification.
For an MSME, learning cannot be a one-time exercise. As technologies
and business requirements change, reskilling and upskilling can help
enterprises improve productivity, quality and operational efficiency.
A Manufacturer’s Journey: Why Skills Matter
The experience of Shubhalaxmi PET, a Cuttack-based
manufacturing enterprise that began as a small unit in 2011, illustrates this
connection between technology and capability.
The enterprise manufactures PET preforms, bottles, jars and
household plastic products. Its journey demonstrates that modern machinery
needs to be supported by the right technical skills - not only to operate and
maintain equipment, but also to ensure consistent product quality.
For growing manufacturers, the message is clear: technology can
create new possibilities, but people and their capabilities help turn those
possibilities into results.
Taking Finance Closer to Rural and Semi-Urban MSMEs
Skills are one part of the growth equation. Access to timely
finance is another.
For entrepreneurs in rural and semi-urban markets, financing needs can
go beyond day-to-day working capital. Businesses may require funds to purchase
machinery, modernise operations, adopt new technology, maintain inventory or
expand their operations.
This is where Regional Rural Banks (RRBs) can play an important
role.
With their local branch networks and understanding of regional
markets, RRBs can support MSMEs closer to where they operate. They can also
assist first-time entrepreneurs in understanding documentation, registration,
and other requirements involved in accessing formal credit.
Bringing Local Reach and Digital Lending Together
The SIDBI-RRB Co-Lending Arrangement brings together the local
presence and customer understanding of RRBs with SIDBI’s MSME lending and
digital capabilities.
Technology is helping make the lending journey more structured and
transparent, from submitting an application to tracking its progress.
Entrepreneurs can undertake the digital process themselves or seek assistance
through participating RRB branches.
The experience of Maharashtra-based Rohit Traders offers one
example. The business accessed working capital through the co-lending
arrangement, helping it maintain inventory and meet customer demand more
effectively.
Another example is AN Enterprises from Aligarh, which used
machinery finance to expand production of horse-riding saddlery and related
products. Following the installation of new machinery, the enterprise reported
improvements in production and quality, along with an increase in its workforce.
Growth Happens When Capital Meets Capability
For an MSME looking to grow, finance and skills are not separate
pieces of the puzzle. They work together.
Finance can help a business invest in machinery, technology, inventory
and expansion. The right skills can help the business use those investments
more effectively.
As MSMEs look to scale, strengthening human capabilities alongside
access to formal finance can help them improve productivity, competitiveness
and resilience.
The latest conversations on SIDBI MSME Samvaad bring these
perspectives together — from building the skills needed for a changing business
environment to making formal finance more accessible to enterprises across
rural and semi-urban India.
Episode links:
Episode 13: https://www.youtube.com/watch?v=3l7zk0fAfTU
Episode 14: https://www.youtube.com/watch?v=zVpvrQIrQBA&list=PLOmLLhH0s7is&index=2