E-Business Applications by the Food, Agro, and Marine Segments of Micro and Small Enterprises (MSEs)

Introduction

India's Micro and Small Enterprises (MSEs) have consistently relied on domestic trade. By implementing e-business technologies, these businesses have begun to investigate the possibility of conducting international commerce. MSEs have an enormous effect on the economic performance of a nation. Increased employability and regional development will undoubtedly follow from the expansion of MSEs in the country. The presence of both large-scale businesses and multinational corporations intensifies rivalry to varying degrees. MSEs must overcome such growing difficulties in order to achieve their goals and be successful. These businesses diversify the country's sources of income, increase its competitiveness, and promote economic growth that makes the economy more dynamic. Additionally, MSEs contribute to the improvement of social sectors by encouraging widespread employment, fostering the development of local technology and skills, encouraging innovation and entrepreneurship, and establishing an industrial base at various scales.

Beginning in July 2020, the Micro and Small Enterprises (MSEs) definition has been updated by the Ministry of MSME. When the investment in “Plant and Machinery or Equipment” is not more than Rs. 1 crore and the “Annual Turnover” is not more than Rs. 5 crore, the manufacturing and service firms are categorised as “Micro.” Additionally, businesses are categorised as “Small” when their “Investment in Plant and Machinery or Equipment” is less than Rs. 10 crores and their “Annual Turnover” is less than Rs. 50 crores (MSME, 2022). MSEs have the unique characteristic of requiring relatively less capital expenditure and having more operational flexibility. The MSEs are able to play a significant role in the growth and development of the country because to low setup costs and strong returns on investments (SME Venture, 2016).

As a result of financial globalisation and information technology improvements, e-business models are being created depending on how producers and consumers view the company. The MSME's adoption of e-business technology has not been impressive when compared to major businesses. (Parasuram, et al., 2021). In terms of employment, eliminating socioeconomic disparities, and increasing export potential, these businesses are significantly boosting the economy (Das, 2017). According to Sumual et al. (2018), MSEs are a labor-intensive enterprise in the informal sector that may have restricted or simple use of certain factors including employees' education levels, skills, and the relative use of capital and technology. Climate change has become an important factor for businesses in today’s world. From positive developments, like the new green economy or efficiency gains from decarbonization, to negative effects, like trade interruptions or drops in supply related to climate events, climate change is creating both opportunities and risks for businesses, including MSEs (WTO, 2022).

To benefit from the market, businesses are already embracing e-business operations (Hussein & Baharudin, 2017). Despite having great potential, many MSEs are still hesitant to depart from conventional business structures. A number of adoption challenges, including lack of awareness, insufficient funding, lack of training and assistance, and technological cost transparency, have been blamed for the slow rise of e-business adoption in MSEs. To speed up e-business use among MSEs, the Indian government has announced a number of initiatives, including Digital India, Make in India, Start-up India, Skill India, and the Innovation Fund. It is also encouraging to market their goods on the government-run e-Marketplace (GeM), which is used by public sector organisations to buy supplies. The marketing systems used by the MSE are ad hoc, unstable, and organic. These businesses prioritise sales, and their primary marketing goal is to raise awareness of their brand and the goods and services they provide. As the activity is discovered to be one of the key elements of successful marketing of these firms, the MSEs that were unable to adhere to a marketing plan must benefit.