Indian festivals are a major source of job opportunities for small and midsize enterprises (SMEs). Festivals like Diwali, Navratri, and Eid boost demand for a variety of goods and services. Due to the increase in demand, SMEs can increase their output, hire more staff, and satisfy customers’ holiday demands, all of which support overall economic growth and job creation.
Let’s understand how Indian festivals contribute to the growth of SMEs and address the challenges faced by them.
Challenges Faced by SMEs
1. SMEs often struggle to secure loans or enough capital from financial institutions. A lack of funds restricts their capacity to expand, invest in cutting-edge technology, or efficiently run their daily businesses.
2. An intricate and constantly evolving regulatory environment often requires SMEs to navigate complicated tax laws and extensive paperwork, which can slow down their progress.
3. SMEs may find it challenging to keep up with new technological developments because of their high costs, lack of technical expertise, or poor infrastructure. This affects their productivity, customer engagement, and competitiveness in both local and global markets.
4. SMEs have difficulty accessing both domestic and foreign markets, which restricts their ability to expand. This restriction prevents them from scaling up and growing their market presence.
5. Small and medium-sized enterprises (SMEs) in India encounter intense competition from both foreign and big local companies. SMEs are at a disadvantage since larger businesses have greater resources for marketing, branding, and finance.
6. Many small businesses are unaware of the various government schemes available to promote SMEs or find the application procedure too complex. They consequently miss out on opportunities for training, technology support, and financial assistance that may enable them to overcome their challenges.
Role of SMEs in the Indian Eonomy
SMEs are backbone of the Indian economy, contributing about 30% to GDP and employing around 40% of the workforce. They are prominent in manufacturing, trade, and services and account for approximately 45% of industrial output and over 40% of total exports.
Government initiatives such as “Make in India” and “Startup India” support SME growth by providing access to financing and technology. This enables SMEs to expand, create more jobs, and foster innovation, particularly in rural regions.
How Indian festivals are creating job opportunities for SMEs
Here are a few of the ways how Indian festivals are creating job opportunities for SMEs:
The economic impact of festivals
Indian festivals significantly boost the economy by generating business and creating jobs. For instance, festivals like Ganesh Chaturthi brings in Rs. 20,000 crore, with Hyderabad contributing Rs. 5,000 crore and supporting over 20,000 families. Durga Puja adds around Rs. 40,000 crores, mainly in West Bengal, while food and beverages generate an extra Rs. 50-60 crore during the celebrations.
Smaller festivals like Raksha Bandhan generate Rs. 400 crores, supporting 4,000 families in Gujarat. The International Kite Festival adds Rs. 500 crores, benefiting 6,000 families, especially in Gujarat.
Festivals also drive retail, with e-commerce giants witnessing massive growth and earnings during this period.
Seasonal jobs in SMEs
During festive seasons, SMEs often need additional manpower to meet the increased demand. This creates seasonal job opportunities in various sectors, such as retail, manufacturing, logistics, and hospitality. For example, during Diwali, there is a high demand for workers in the firecracker industry, while during Durga Puja, there is a high demand for artisans who create idols and decorative items.
Over the next festive season, the retail sector is expected to add 7–10% more employment, while e-commerce and logistics could rise by 10-12%. This hiring typically peaks in the 3-4 weeks immediately preceding the Festival of Diwali.
SME job in-demand include:
- Delivery executives (30%)
- Warehouse workers (25%)
- Logistics coordinators (20%)
- In-store sales executives (15%)
- Customer care executives (15%)
Make in India Initiative
Launched in 2014, the Make in India program seeks to establish India as a major global manufacturing hub and a crucial component of the global supply chain. Reforms like the eBiz site simplify the regulatory environment for SMEs and make important industries more accessible to foreign direct investment (FDI).
Made in India makes it easier for SMEs to grow and compete globally by promoting innovation and opening up access to international markets. Furthermore, by ensuring SMEs have access to skilled staff, the emphasis on skill development through complementary initiatives like Skill India enhances productivity and creativity, which contributes to higher growth during the festive season.
Overall, Made in India offers SMEs greater opportunities for growth, investment, and global competitiveness.
Opportunities for Employers
For employers, festival hiring offers a unique opportunity to grow their operations and increase their talent pool efficiently. Businesses can increase their workforce without entering into long-term contracts by using temporary hiring, which gives them the freedom to change their personnel levels as needed. This is especially helpful for industries like logistics and e-commerce, where the demand for delivery drivers, warehouse workers, and customer support representatives may increase over the holidays.
Hiring during festivals also gives businesses the chance to find possible full-time workers. SMEs can develop a talent pool for future recruiting needs by selecting high-performing temporary employees for permanent roles based on their performance.
Conclusion
Indian festivals have a major role in economic growth and employment generation, particularly for small and midsize businesses (SMEs). These festivities increase the market for customary products and services, allowing you to give workers and artisans vital job possibilities. Government initiatives and the growth of e-commerce can also help SMEs prosper during these holiday seasons.
However, a lack of funds shouldn’t come in your way of growing your business during the festive season. Turn to Tata Capital for convenient small business loans at competitive interest rates. Featuring simple application process, minimal documentation, and flexible repayment terms, Tata Capital business loans offer easy access to the funds you need.
For more insights on how to apply for a business loan to invest in your growth, visit the Tata Capital website or download the app today.
20 November 2024
5 mins read
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