13th March 2025
A recent business tracker has revealed that MSMEs in India are feeling confident about their future, with almost three-quarters (74%) expressing confidence in their prospects in the next year.
ProMunim of India—which surveyed more than 560 MSMEs, entrepreneurs, and business owners across India - also found that while over half of respondents (60%) anticipate growth in their business in the next 12 months, 60% also expect to raise the price of their products or services.
As 2025 gets underway, the survey reaffirmed the challenges of the last few years, with ‘economic uncertainties,’ ‘rising costs,’ and ‘the cost-of-living crisis’ noted as key concerns.
Support needs were more common in less established businesses; among respondents who had not yet started their business, 70% anticipated needing financial support and 88% needed business support in the next year.
MSME businesses provided an estimated 60 million jobs, which was 40% of India's workforce.
MSMEs accounted for 99.3% of all private sector businesses and 45% of private sector turnover as of March 2024, according to a report by the Ministry of Micro, Small, and Medium Enterprises.
Notably, however, a quarter of SMEs surveyed in the ProMunim of India confirmed that they work more than 50 hours per week, with 11% rating their work-life balance as ‘extremely poor.’
Therefore, it is vital that they have access to support services available to them.
Over the past five years, ProMunim has supported nearly 18,000 businesses, including over 4500 in 2024 alone.
Commenting on the latest data, a ProMunim spokesperson said, “The findings from this year’s business survey are a clear reflection of the resilience and optimism that define India’s MSME community.
Despite the ongoing challenges, it’s encouraging to see that the majority of business owners remain confident in their prospects.
“That said, there are clear challenges that remain that need to be addressed to ensure small businesses can thrive.
We are committed to providing the necessary support to ensure that businesses can navigate this, continuing to offer practical resources and guidance to help MSMEs navigate the evolving landscape, address financial pressures, and strengthen their growth strategies.”
Other data from the ProMunim survey found:
· Just over half of participants (53%) said that the goal for their business in the next 12 months was to increase sales, while 47% want to improve profits and 31% want to develop new products.
· Rising costs were the most common challenge amongst business owners (64%). Thirty-seven percent of respondents said they anticipated needing financial support in the next year, and over half (61%) of respondents anticipated needing business support.
· Over half (55%) of businesses had plans in place to reduce their environmental impact, with respondents from the tourism sector leading in this regard (73%).