MSMEs and Traditional Business Methods Vital to the Indian Economy: Experts India's Micro, Small, and Medium Enterprises (MSMEs) have been fundamental to the country's economy, embodying traditional business practices that contrast sharply with the current startup model focused on fundraising and valuations, experts said at Proficorn 2024, an event focused on celebrating the contributions of MSMEs in India.

India's Micro, Small, and Medium Enterprises (MSMEs) have been fundamental to the country's economy, embodying traditional business practices that contrast sharply with the current startup model focused on fundraising and valuations, experts said at Proficorn 2024, an event focused on celebrating the contributions of MSMEs in India.

As of 2024, MSMEs contributed approximately 30 per cent to India's GDP, with employment provided to over 20 crore individuals, with the majority of the enterprises being micro-level establishments.

One such traditionally bootstrapped company, making waves in the coaching industry is Drishti IAS. One of the top figures in the Indian coaching sector, Founder and former civil servant, Vikas Divyakirti believes the key to successfully contributing is to follow simple methods to make profits.

"You have to have a great product if you want to sustain. Good marketing without the quality product can only help businesses survive for a few months. But to deliver satisfaction to your customers, quality product is essential," said Divyakirti when speaking at the Proficorn 2024.

CaratLane, a prominent online jewelry retailer co-founded by Mithun Sacheti, exemplifies the blend of traditional business ethics and modern e-commerce innovation.

Sacheti started his business as a traditional jeweler with a physical store with traditional funding before bringing in VC funds in 2011 from the likes of Tiger Global Management, ultimately leading to a profitable acquisition by Titan Company in 2016.

Sacheti emphasized how focusing on sustainable growth rather than high-stakes valuation helped the brand earn loyalty in a competitive market, underscoring that MSMEs can achieve substantial growth through strategic digital engagement and maintaining core values.

"It is the product you create and the customers you create, everything else is in between that. When you solve these two things, you start solving for your business. The tools to solve these are marketing, finance, and all of that," said Sacheti.

Kishore Biyani, Founder of Future Group, offered his perspective on the value of retail experiences for India's diverse consumer base. Known as the "Retail King of India," Biyani built Future Group into one of India's largest retail conglomerates, focusing on making shopping accessible for all segments. Despite facing challenges, Biyani has been vocal about the importance of local entrepreneurship in driving India's growth, highlighting that creating jobs and addressing diverse consumer needs form the backbone of India's economy.

"India cannot grow without its entrepreneurs. They are the ones who will create the jobs," he noted emphasizing the nuanced differences between urban and rural consumer behavior, which MSMEs are uniquely positioned to serve effectively.

Biyani also noted the role of failure in business and said, "Failure can be celebrated too. I'm a failure, and my story can be an example for India. That failure can also be treated with respect, " emphasizing the importance of business being generous in both business and life for everything to thrive.

The country's example from the MSME sector showcases the value of a stable, community-rooted business model that focuses more on self-reliance and sustainability rather than rapid growth. The approach emphasizes long-term value-creation and resilience, providing a contrasting narrative to the high-stakes world of startups and along the way highlighting the importance of traditional business methods, making them a vital component of India's socio-economic fabric.