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Flipkart signs pact to help micro, small enterprises scale up business

The Hindu BusinessLine:  June, 2014

New Delhi: Online marketplace Flipkart has signed a memorandum of understanding with the Federation of Indian Micro and Small and Medium Enterprises (FISME) and National Center for Design and Product Development (NCDPD) to boost manufacturing and entrepreneurship in the country.

According to the MoU, Flipkart will provide micro, small and medium entrepreneurs’ infrastructural support in data analytics, marketing and customer acquisition to help them scale their business.

“We believe the marketplace model is best suited for an emerging economy like India with a huge population. This model has seen traction in the past three years and we want to further use this platform to encourage entrepreneurship in the country,” Ankit Nagori, Vice-President – Marketplace, Flipkart, said.

He said the partnership will enable 50,000 MSMEs and artisans to become self-reliant, improve living standards and scale their business manifold.

This is one of its kinds that such a prominent three organisations have come together to create a platform to focus on the betterment of manufacturers and artisans.

Women entrepreneurs

Such move would also benefit women entrepreneurs. “This in turn will help them plan their production and expand business — revolutionising manufacturing in India, encouraging entrepreneurship and growing the rural economy,” RK Srivastava, Executive Director, NCDPD, said. According to Internet and Mobile Association of India (IAMAI), the e-commerce industry has witnessed a growth of 150 per cent, increasing from Rs. 19,249 crore in 2009 to Rs. 47,349 crore in 2012 because of the growing number of small retailers and manufacturers in the net.

“Various entrepreneurial ventures have mushroomed by virtue of opportunities provided by e-commerce. E-tailing, which is 16 per cent of the e-commerce market today, would grow to 30-35 per cent by 2020,” Shubho Ray, President, IAMAI, said.

He said the industry is estimated to generate employment for 1.5 million people by 2020 and has a potential for generating livelihood within the industry and the auxiliary industries.