Big tech’s fake love
They see profit in helping Indian MSMEs
They see profit in helping Indian MSMEs
Big Tech firms want to unlock the potential of micro, small and medium enterprises (MSME). They have launched products for them. One third of MSMEs have to borrow from money lenders as banks do not lend to them.
Paytm Mini showcases businesses to its users. Google Pay’s Spot helps businesses discovered . Shopify Express allows one page e-commerce website for small businesses. Instamojo Capital offers cash loans for MSMEs. Jio promised internet to MSMEs at one tenth the cost. They are after 26million MSMEs, who will earn upto INR 20lakhs per year.
Udit Misra writes in Indian Express: In other words, most of the MSME funding comes from informal sources and this fact is crucial because it explains why the Reserve Bank of India’s efforts to push more liquidity towards the MSMEs have had a limited impact.
99% of the MSMEs are micro enterprises, employing less than five people. 50% of MSMEs are in rural areas. Unless government unleashes the grassroots reform, big tech or agri-tech or fin-tech won’t be able to help MSMEs unlock their potential.