According to NeoGrowth's latest 'MSME Business Confidence Study' for 2024, a staggering 90% of micro, small, and medium enterprises (MSMEs) expressed confidence in India's economy, projecting resilience or improvement in the coming year.
Released on Wednesday (January 10), the study analyses responses from nearly 3,000 MSMEs across 25+ top cities in India, highlighting the continued confidence of small businesses in India’s economy, their preparedness to meet consumer demand, and the strategies they planned to implement in 2024 to drive business growth.
The study reveals that 91% of MSMEs anticipate increased profits in 2024, driven by government initiatives and a robust economy. Over 40% of MSMEs benefited from government schemes in 2023, with the manufacturing and wholesale sectors emerging as primary beneficiaries.
Notably, 82% of MSMEs are gearing up for a digital revolution in 2024, planning to leverage online tools for various aspects, including selling, delivery partnerships, cashless payments, streamlined operations, and enhanced customer engagement.
Consumer demand remains a key focus, with 75% of wholesale and trader segment MSMEs bullish on consumer spending in 2024. The study highlights that Delhi leads in optimism, with 87% of surveyed MSMEs anticipating a surge in consumer spending, followed by Bengaluru and Pune.
The positive sentiment extends to hiring plans, with 44% of MSMEs planning to hire more employees in 2024. Bengaluru and Pune emerge as hubs of maximum hiring activity, with a focus on creating opportunities for people with disabilities, hiring from smaller towns, and increasing the share of women in the workforce.
Further, 60% of MSMEs plan to open new stores and offer new products or services to their customers in 2024. MSMEs in Bengaluru, Delhi, and Pune have shown a willingness to expand their presence in 2024. The highest number of MSMEs in the wholesale/trading sector expects business and store expansion in 2024.
Around 81% of MSMEs plan to adopt sustainable and eco-friendly practices in 2024. Similar to 2023, MSMEs have rated ‘going plastic-free’ as a key environment-friendly initiative of their business for 2024.
