December 13, 2020
Accelerators empower and provide MSMEs and small scale businesses with financial support, mentoring and global exposure.
India Accelerator, Gurugram plans to partner with 500 MSMEs over a period of three to four years for ensuring business growth.
Aims to merge India’s rapidly augmenting start-up ecosystem with the MSME sector with technology, innovation, and experience.
The MSME sector contributes 30% to India’s GDP, 48% to the nation’s exports and has generated 110 million jobs so far.
The COVID-19 pandemic has brought about a paradigm shift which altered the entire scheme for small scale enterprises and would significantly benefit from a particular level of handholding and mentoring with the help of an accelerator program which aids in business expansion and support to raise funds. Organisations like GAME are assisting women entrepreneurs in Bengaluru and along with the state government are onboarding manufacturing MSMEs in Ludhiana. ‘India Accelerator’ (IA) based in Gurugram is not only targeting MSMEs in Delhi and Maharashtra but is also seeking assistance from US based Cornell University for a state-supported accelerator program aimed at small businesses in the state. It also plans to partner with over 500 MSMEs over a period of three to four years starting with 100 in the first year, to undergo the accelerator programme for ensuring their business growth. As stated by Mr. Ratish Pandey, lead of IA’s MSME initiative “young entrepreneurs with a mix of classroom sessions, and practical workshops, will be empowered with ideas that they can be straight away implemented in their business for a positive return on investments.”
The MSME sector forms the backbone of the Indian Economy and is one of the biggest job creators. Due to the pandemic induced lockdown, the MSME sector suffered considerably owing to low sales, poor demand, disrupted supply chains and high capital cost inter alia. One of the main challenges faced by MSMEs is their inability to scale up due to unproductive business cycles and out-dater machinery. Business accelerators can provide them with a productive environment which will encourage their entrepreneurial growth. Accelerators like those based in Ludhiana can be exemplified in an effort to replicate their success stories across the country. ‘Xcelerator Ludhiana has in its sights, both manufacturing MSMEs with an annual revenue between US$ 1.4 million and US$ 6.8 million and service firms with an annual revenue between US$ 0.3 million and US$ 1.4 million.
MSMEs or small family businesses need support, coaching, and need to be educated about changes in growth process, business expansion and industry best practices. Along with funding, they require mentoring and exposure to global practices, for which accelerators provide immense support and skillset to deliver an enterprise’s objectives. Most importantly, accelerators connect startups with industry-seasoned mentors and potential investors who can help overcome challenges.