MSMEs in Bengaluru, Pune confident to make profits this year, Mumbai least optimistic: Report

The small and medium enterprises (MSMEs) in Bengaluru and Pune expect to book profits during the ongoing calendar year, according to a survey conducted by NeoGrowth for the MSME Business Confidence Study 2024. A majority of the MSMEs in Bengaluru have expected an increase in profits by over 30% this year.

MSMEs in Hyderabad have become the second most optimistic city followed by Delhi. However, small businesses in Mumbai have taken a conservative approach with 56% saying their profits will increase by less than 30% this year. As per the survey, 90% of MSMEs have anticipated an improvement in business in 2024 on the back of strong consumer demand and ease of doing business.

95% of the MSMEs in the wholesale or trading sector expressed confidence in India's robust growth trajectory, anticipating their profits to increase by 30% in 2024. Additionally, 75% of Wholesale and Trader segment MSMEs remained bullish on consumer demand in the current calendar year. Among the Indian cities, Delhi appeared most optimistic where 87% of the surveyed MSMEs anticipated a surge in consumer spending.

The survey analysed responses from nearly 3,000 MSMEs from more than 25 cities in India. Over 40% of MSMEs across India experienced a major boost in 2023. Three in five MSMEs mentioned that they have met their 2023 business targets. Interestingly, 80% of women led MSMEs achieved their business targets set for 2023, the survey revealed.

"Similar to 2023, MSMEs have continued to radiate optimism in India’s business environment. From steady growth in profits to expansion plans, their confidence portrays a vibrant picture of prospects for the country’s economic growth in 2024," Arun Nayyar, Managing Director and CEO of NeoGrowth said.

'Strong credit growth in 2024' The MSMEs have also anticipated strong credit growth this year. NeoGrowth survey showed that nearly 60% of businesses across all sectors expected the need for credit in 2024. The Wholesale/Trading and Services sectors anticipate the highest demand, with 64% of businesses seeking credit to boost their operations.

Notably, the appetite for loans was strongest in metropolitan hubs such as Bangalore (88%), Pune (87%), and Delhi (84%). MSMEs expansion spree Among the survey of small businesses, 60% have shown willingness to open new stores and offer new products or services to their customers in 2024. Hiring sentiments In the current calendar year, 44% of MSMEs are expected to hire more employees.

Maximum hiring in 2024 is expected by MSMEs in Bangalore and Pune, the report added. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.