Navigating Healthcare Challenges and Empowering India’s MSME Heroes

  • postauthorOnsurity Editorial
  • postdateJune 27, 2024
  • postreadtime5 min read
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Micro, Small, and Medium Enterprises or MSMEs are a large part of India’s economy. From job creation to economic growth, the key role that MSMEs play is undeniable. According to the Ministry of MSME, these businesses contribute about 30% to our country’s GDP and employ over 110 million people, making them a cornerstone of the Indian economy.

Not just that, MSMEs are also the drivers of inclusive growth. This sector is integral to promoting innovation and providing livelihood opportunities in less-developed regions and groups.

In this blog, we will discuss the significance of MSMEs in the Indian market and understand their challenges and impact.

What are MSMEs?

MSMEs or Micro, Small, and Medium Businesses are entities largely associated with the production, manufacturing, and processing of goods and commodities.

According to the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, they are classified into: 

  1. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry 
  2. Service enterprises – engaged in providing or rendering services 

Also, Read: Healthcare for MSMEs

What is the Impact of MSME Businesses on India

MSMEs are an integral part of the Indian business landscape, encompassing diverse sectors from manufacturing to tech startups. They promote innovation, creates jobs, and enhance exports, helping strengthen India’s economic resilience. By promoting entrepreneurship and supporting local economies, MSMEs play a pivotal role in the country’s overall progress and prosperity.

1. Economic Contribution

MSMEs are one of the major parts of the Indian economy, as this sector contributes about 30% to the country’s GDP. They significantly foster entrepreneurship and generate employment opportunities that help in the nation’s development.

2. Employment Generation

MSMEs in India provide jobs to approximately 110 million individuals. They contribute to economic development by creating employment opportunities in rural regions, in turn, reducing poverty.

3. Export Performance

MSMEs are crucial to the India’s export sector, making for around 48% of the country’s total export volume. This plays a key part in keeping India competitive in global markets, especially when it comes to the goods and services industry.

4. Innovation and Flexibility

MSMEs are often more agile and innovative as compared to larger enterprises. Their ability to evolve fast in a changing market and adopt new technology helps them stay competitive and respond effectively to consumer demands.

Also, Read: 5 Steps to Promote Healthcare for MSME Workers

How are MSMEs Helping India Grow Inclusively?

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in fostering inclusive growth in India through various mechanisms:

1. Regional Development

Often established in rural and semi-urban areas, MSMEs promote industrialization and development beyond metropolitan cities. This contributes to a balanced development of the country and reduces the gap between urban and rural areas.

2. Inclusive Economic Participation

Through their involvement with underrepresented and marginalized groups, MSMEs foster an inclusive economic environment. This facilitates the integration of various societal segments into the broader economic system.

3. Supply Chain Integration

MSMEs play an important role in large-scale supply chains by acting as suppliers, manufacturers, and service providers. This integration ensures that the benefits of economic activity are distributed equitably among different economic levels.

Suggested Read: Group Health Insurance for Small Business

Awareness about Health and Wellness in the MSME Sector

Even though the MSME sector is a large part of the country’s economy, it has relatively low awareness of health and wellness of their employees. According to a 2020 report by Insurance Regulatory and Development Authority of India (IRDAI), approximately 85% of MSMEs in India are uninsured, despite being highly susceptible to business risks.

This vulnerability largely rises from a lack of awareness about insurance benefits, leaving these enterprises exposed to losses from natural disasters, theft, and other unforeseen events. But why do these MSMEs overlook the importance of insurance, exposing themselves to various risks that could potentially cripple their businesses?

This International MSME Day, we spoke to some business owners from the bustling streets of Bengaluru and got a firsthand understanding from these resilient business owners. While many of them go above and beyond to take care of their employees, none of them have purchased health insurance for their team. A reason stated by many of them was that the team size is small, and so is the business.

At Onsurity, we strongly believe in democratizing health and wellness for the workforce of India, irrespective of their team or business size. Our aim is to enable more and more MSMEs to embrace insurance, to secure their future and contribute to financial resilience.

How is Onsurity Helping MSMEs with the Right Insurance Solutions? 

In India, MSMEs form the backbone of the economy, driving growth and creating jobs. However, we have witnessed firsthand the challenges these enterprises face due to the lack of awareness when it comes to health insurance for their employees.

For instance, a small manufacturing company in a rural part of Maharashtra with just four or five employees was operating smoothly until one day, an accident occurred in the factory. One of the workers got injured while handling machinery.

The company, unaware of the importance of insurance, didn’t have their employees covered with health insurance. Unfortunately, they had to bear all medical expenses and compensation out of pocket. This incident not only strained their finances but also disrupted their operations, highlighting the need for adequate insurance coverage.

Why Choose Onsurity? 

1. Tailored for Teams of All Sizes

We understand the unique challenges faced by smaller teams and provide customised solutionseven if that means supporting a team size of as small as 3!  

2. Affordable and Comprehensive Plans

Onsurity offers insurance plans tailored to fit the budget and specific needs of MSMEs, with monthly healthcare and wellness membership plans starting at just ₹145 per employee, per month.

3. Simplified Insurance Process

Understanding healthcare can be difficult for small business owners. Onsurity simplifies this process with easy-to-understand products and a user-friendly app, making it effortless for MSMEs to get the coverage they need.

4. Wellness Programs and Preventive Care

Beyond just insurance, Onsurity offers wellness programs that focus on preventive care. This includes regular health check-ups, teleconsultations, and fitness programs, helping MSMEs maintain a healthy workforce and reduce the likelihood of workplace accidents.

5. Easy Reimbursement of Claims

We understand claims processes can be confusing, which is why we also have the Good Doctors team to help make the process hassle-free for you. Our real-time claims tracker also helps track claims seamlessly and makes reimbursements truly effortless.

MSMEs are helping shape the economy of our country. Despite their substantial contributions, many MSMEs remain uninsured, which is a major concern and needs urgent addressing. This is only possible with an increased knowledge and understanding that insurance is vital for their sustainability and business protection.

Onsurity addresses this gap by offering affordable, comprehensive, and easily accessible health and wellness plans tailored to the unique needs of MSMEs. With a supportive team, wellness programs, and tailored solutions for small teams, Onsurity ensures that MSMEs are well-protected, and their growth and success are unhindered.

Disclaimer:

Good Doctors team provides an assistance service for smooth hospitalisation and settlement of claims, post sale of the product/ service. Please note that this service or offering is not in the nature of any kind of insurance consultancy, claims consultancy, or any other insurance-related services.

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