Whether in the quiet corners of villages or the hectic streets of cities, MSMEs (Micro, Small and Medium Enterprises) are fighting battles to survive and grow. These businesses, the backbone of Bangladesh’s economy, face daily struggles that threaten their small businesses. The pain is palpable whether it’s a rural shop owner traveling miles to restock basic products or an urban entrepreneur losing customers due to delayed supplies.
For rural MSMEs, the lack of access to trusted suppliers and the high cost of transportation create a constant uphill climb. On the other hand, urban MSMEs, though close to supply hubs, grapple with fierce competition, logistical chaos and untouchable spiraling costs. Both suffer, not because of a lack of potential but because of an inefficient supply chain system that fails to meet their needs.
The Major Dilemma of MSMEs
MSMEs often find themselves trapped in a web of challenges that stifle their growth. Let’s delve into the critical dilemmas holding back MSMEs and explore how these issues create hurdles for MSMEs, especially how they are striving to survive in a competitive market.
Poor access to credit: this is one factor that has continued to be pointed out as one of the major reasons that is holding local entrepreneurs back. It’s a nightmare for fresh blood to get access to credit because most of the banks target the urban MSMEs whereas the rural MSMEs are overlooked. And the whole process of accessing credit because of collateral issues and the high cost involved in processing the loans. MSMEs also lack proper knowledge of how to access financial institutions.
Lack of efficient distribution channels: Although Bangladesh has one of the flattest land structures in the world, the lack of natural obstacles (hills, desert etc.) makes the country any supply channel manager’s dream. But unfortunately, the real picture is somewhat different in reality. Lack of supply chain management knowledge, a weak and backdated transportation system, and corrupt road authorities are some factors that contribute to making the system inefficient.
Imperfect market: Market imperfection bleeds the businesses especially the small players the most. The dominance of the middlemen in the value chain often cost price distortion. It is a common scenario for the product to be sold at a significant premium while the producers take on a huge loss. Lack of information and the control exercised by these forces cause severe problem for the brands.
Lack of proper business knowledge: Many MSMEs of Bangladesh apply the traditional hit-and-miss approach with their businesses. They have little knowledge and no access to training. Training on this infrastructure doesn’t even exist. In the absence of know-how relating to general finance, branding, regulation, law etc businesses tend to miss the opportunity that the modern environment offers.
PriyoShop’s Role Amid These Hurdles
But fortunately, the pale background story is changing with diverse steps both from the government and private sectors. Bangladesh Bank regulations and strong remittance growth from the migrant workers banks are reaching out to the MSMEs. And from 2021, a revolution began with PriyoShop, a Singapore-backed B2B Marketplace. But how exactly does PriyoShop make a difference?
Access to trusted suppliers
One of the most significant challenges for rural MSMEs is finding reliable 270+ suppliers. PriyoShop’s vast network ensures that even the most isolated businesses have access to quality products. This eliminates the need for long, costly trips and reduces the risk of stock shortages.
FinTech solutions:
PriyoShop is also embracing FinTech solutions to address the financial challenges that these businesses face. By offering a suite of financial services, providing credit facilities that allow businesses to purchase inventory without the immediate burden of upfront costs and introducing the first-ever CMSME credit cards. With all these solutions tailored according to their need, MSMEs can optimize their financial operations. This flexibility enables MSMEs to maintain their stock levels, meet customer demands and avoid cash flow issues.
Cost-effective logistics
For urban MSMEs, where competition is fierce and costs are high, PriyoShop offers a streamlined supply chain that can handle the logistical challenges of a bustling city. Efficient delivery systems mean that businesses receive their supplies on time, helping them maintain customer satisfaction and stay competitive.
Utilization of innovative app
PriyoShop’s user-friendly platform empowers MSMEs to order products with just a few clicks from anywhere and everywhere. They can have their customized order list, offer point, track their credit facilities, customer support and live chat so that their entire order processing is now smooth and seamless and this also ensures transparency and reliability.
Empowering entrepreneurs
PriyoShop doesn’t just deliver products; it delivers empowerment. Providing a stable, efficient supply chain, they are enabling MSMEs to focus on what they do best—serving their customers and growing their businesses. The urban entrepreneur no longer loses customers due to delayed supplies, and the rural shop owner no longer struggles with transportation costs.
A Bright and Sustainable Future for MSMEs
The impact of PriyoShop’s innovative approach extends beyond just supply chain efficiency. It fosters a sense of stability and confidence among MSMEs, allowing them to thrive against the odds. With reliable access to supplies and cost-effective logistics, these businesses can unlock their full potential, contribute to economic growth, and create a more resilient and vibrant business ecosystem in Bangladesh.
PriyoShop’s partnership with MSMEs is a testament to the power of innovative solutions in overcoming traditional challenges. By bridging the gap between rural isolation and urban complexity, PriyoShop is not just easing the struggles of MSMEs—it is laying the foundation for a more prosperous and dynamic future for all.