Team Blitz India
INDIAN small businesses are poised for robust growth in 2024, as indicated by a recent CPA Australia survey. An overwhelming 84 per cent of respondents express optimism, surpassing the global average. This positive outlook reflects the resilience and dynamism of India’s small business sector, with a steady increase in growth rates since 2022.
The survey gathered insights from 4,222 small businesses across 11 Asia-Pacific markets, including 505 respondents from India, providing a comprehensive overview of the region’s small business landscape. Notably, 80 per cent of Indian businesses remain confident in the local economy, outperforming the survey average. This optimism is fueled by India’s rapid economic growth and improving business environment, supported by government initiatives such as digitalisation and access to funds.
Prafulla Chhajed, a CPA member in India, underscores the vital role of micro, small, and medium-sized enterprises (MSMEs) in driving the nation’s economic success. Despite challenges like increasing costs and cash flow difficulties, Indian businesses are adapting through innovation and technology adoption.
Surmounting the odds
While job creation may stagnate due to automation and rising labour costs, Indian businesses continue to prioritise growth. However, accessing finance remains a challenge, with fewer respondents finding it easy to secure funds compared to previous years.
To manage costs and support growth, Indian businesses are investing in accounting software and seeking professional advice. Moreover, they demonstrate a strong inclination towards global expansion and innovation, with a significant number expecting revenue growth from overseas markets and planning to introduce new products or services.
Chhajed highlights government platforms for MSMEs’ global expansion and emphasises leveraging opportunities in international trade fairs. He also underscores the role of India’s thriving digital economy in fostering innovation among small businesses. Overall, the survey provides insights into the challenges and opportunities facing Indian small businesses, showcasing their resilience and determination to thrive in an evolving economic landscape.
Staff and material costs were particularly detrimental in 2023, rising slightly from the previous year. To cope with these expenses and support growth, 68 percent of small businesses sought external funding last year, though this figure dropped 20 percentage points from 2022. This year, 81 percent plan to seek finance, despite tougher financing conditions.
