CRISIL has analysed the performance of about 6,100 micro, small and medium enterprises (MSMEs) rated on the basis of their 2013-14 (April 1 to March 31) financials. The study revealed that the average sales of MSMEs that have a web presence in the form of their own website grew by 18 per cent in 2013-14, as against 11 per cent growth in the average sales of those that did not. Notably, among the total number of MSMEs studied, nearly 60 per cent did not have a web presence, and of these, close to two-thirds were partnership or proprietorship firms. The latter mostly rely on the goodwill enjoyed by their promoters or proprietors in the market and word-of-mouth publicity to market their products and/or services.
CRISIL believes that these MSMEs would benefit greatly by having their own web presence, as it would help them showcase information in detail about their products and/or services, technical expertise and client profile, as well as to receive and handle customer queries directly. It would also help them reach out to customers across a much wider area of operations, and help diversify geographically, especially since the number of internet users in India is growing.
CRISIL believes that these MSMEs would benefit greatly by having their own web presence, as it would help them showcase information in detail about their products and/or services, technical expertise and client profile, as well as to receive and handle customer queries directly. It would also help them reach out to customers across a much wider area of operations, and help diversify geographically, especially since the number of internet users in India is growing.
Note: CRISIL has rated over 75,000 MSMEs in India. This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy.