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Context:

The Ministry of Micro, Small, and Medium Enterprises (MoMSME) announced the TEAM Initiative.

About the TEAM Initiative

The TEAM (Trade Enablement and Marketing) Initiative is launched by the Ministry of Micro, Small, and Medium Enterprises (MoMSME) in collaboration with the Open Network for Digital Commerce (ONDC) to empower micro and small enterprises (MSMEs).

With a budget of ₹277.35 crore over three years, the initiative aims to onboard 5 lakh MSMEs onto the ONDC network, with a special focus on women-led businesses (50% of the target).

Key Objectives of the TEAM Initiative

Digital Transformation of MSMEs

• Enable MSMEs to adopt digital commerce and expand their market presence by connecting them to the ONDC network.
• Provide access to digital storefronts, integrated payment systems, and logistics support to reduce operational barriers.

Formalization and Credibility

• It will help MSMEs to formalize their operations and establish digital transaction histories to enhanc their credibility and trustworthiness.

Empowering Women and Marginalized Groups

• Focus on onboarding women-led businesses and enterprises led by SC/ST communities.
• Conduct over 150 workshops in Tier 2 and Tier 3 cities to guide MSMEs through the process of joining ONDC and creating compliant digital catalogues.

Financial Assistance

• Provide financial support to Seller Network Participants for catalogue creation, operations, and account management to ease the transition to digital commerce.

Collaboration with Government Schemes

• Integrate with existing government programs like PM Vishwakarma and the Digital MSME Scheme to offer a cohesive approach to MSME development.

Benefits for MSMEs

• Access to a Wider Market: By joining the ONDC network, MSMEs can tap into a larger customer base across India.
• Level Playing Field: The initiative creates a level playing field for small businesses to compete with larger enterprises.
• Digital Tools and Resources: MSMEs will gain access to digital tools, payment systems, and logistics support, enabling them to operate more efficiently.
• Enhanced Credibility: Formalizing operations and maintaining digital transaction histories will improve the credibility of participating MSMEs.

Role of ONDC

• ONDC is a network of 200+ apps, including buyer apps and seller apps, that facilitates seamless digital commerce.
• Shoppers can use buyer apps to purchase products, while sellers can use seller apps to list their products on the network.
• ONDC aims to democratize digital commerce by enabling small businesses to compete effectively in the digital economy.

Way Forward

The TEAM Initiative to support MSMEs to adopt digital commerce and compete in the modern economy. By providing access to digital tools, financial support, and training, the initiative aims to empower 5 lakh MSMEs, with a special focus on women-led businesses and marginalized groups.   

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Source: 

THE HINDU BUSINESSLINE