Introduction:

Empowering MSMEs through Proven Strategies

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of any economy, contributing significantly to employment, GDP, and innovation. However, MSMEs face numerous challenges, ranging from access to finance and markets to capacity building and regulatory support.

The Micro, Small and Medium Enterprises (MSMEs) sector in India has become a vibrant sector in the last few decades. There are 63.4 million MSME units in the country, 99% of them are micro-enterprises, more than 80% of them are run informally and 79% are self-financed. It contributed 29% to the country’s GDP in 2015-16 (MSME, AR 2017-18) thus becoming very important for the development of the country and can be considered the backbone of the economy. The sector has created 11.10 crore jobs, of which 45% were in the rural part of the country. (NSS 73rd round, 2015-16). Of the 11.1 crore jobs, only 2.6 crore or 24% jobs were for women. However, MSMEs face numerous challenges such as Informal, diverse and unstructured nature of business, Limited knowledge of opportunities, Inadequate market connect, Absence of viable credit providers and suitable credit products, Delayed payments, Simple organizational structure, informal relationships among employees, Labor-intensive traditional methods of production and inspection in coordinating their supply chain due to lack of resources etc.

The Business Catalyst program has successfully supported 70000 MSMEs by addressing these pain points with a blend of strategic guidance, holistic support, and practical tools.

This playbook is designed to provide step-by-step guidance on how you, too, can build an MSME support program, drawing from the successful strategies employed by Business Catalyst. Whether you’re an NGO, government body, private sector player, or an individual, this playbook will help you design and implement a successful MSME program.

Call to Action: Ready to empower MSMEs? Let’s get started and see how Business
Catalyst can help you transform your approach to MSME support!

Step 1:

Defining the Program
Objectives

Every successful program begins with a clear understanding of its objectives. Defining the goals of your MSME support program is critical in determining its scope, success metrics, and overall impact. The goal should focus on fostering an ecosystem that enables MSMEs to thrive by addressing structural barriers, enhancing entrepreneurial capacities, and connecting them with market opportunities. Through these targeted interventions the aim should be to unlock the growth potential of these enterprises, ensuring inclusivity and resilience.

Key Steps:
  • Understand MSME Pain Points: Before setting your objectives, take the time to deeply understand the challenges MSMEs in your region or sector face. Conduct diagnostic assessments to identify challenges and opportunities and segment MSMEs based on growth potential, market readiness, and enterprise type.
  • MSMEs see growth in the following ways:
    • Customers: New contracts / New sales
    • Cash: Better cash cycles / New investments
    • Capacity: New hires / New facilities
  • Set SMART Goals: Your program objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). For example:
  • Provide capacity-building workshops to 500 MSMEs in rural areas within the next 12 months.
  • Facilitate market linkages for 300 women-led enterprises by year-end.
  • Align with Stakeholder Interests: Ensure that your program objectives align with the interests of key stakeholders such as investors, government agencies, and MSME associations.
  • Monitoring and Iteration: Track progress using tailored indicators like revenue growth, digital adoption, and market reach and Continuously refine interventions based on feedback and outcomes.

Business Catalyst Service Highlight:
Business Catalyst’s consultation services help you tailor your program
objectives based on deep market insights and stakeholder expectations.
Our team works with you to ensure your goals are actionable and
aligned with real-world MSME needs.

Check out The Stories of Business Catalysts

Step 2:

Mapping
Stakeholders
and Building
Partnerships

No MSME program can succeed in isolation. Building a support ecosystem through strategic partnerships is key to ensuring your program has the resources, reach, and expertise it needs to succeed.

Key Steps:
  • Identify Stakeholders: Map out all the stakeholders that can impact or benefit from your program. These typically include:
    • Government agencies.
    • Private sector corporations.
    • Financial institutions.
    • MSME associations and chambers of commerce.
    • Educational institutions and skill development centres.
  • Create a Partnership Framework:Establish clear roles and expectations for each partner. Develop a shared vision that aligns with the program’s goals and assigns responsibilities for funding, resources, or capacity-building efforts.
  • Foster Collaborative Ecosystems: Encourage regular communication and collaboration among partners. Successful MSME programs thrive on cross-sector cooperation that benefits from diverse expertise and resource pools.

Business Catalyst Service Highlight:
Business Catalyst’s consultation services help you tailor your program
objectives based on deep market insights and stakeholder expectations.
Our team works with you to ensure your goals are actionable and
aligned with real-world MSME needs.

Step 3:

Designing a Holistic
Program Framework

A strong program framework addresses MSMEs’ needs across various domains, from capacity building to financing. Designing a comprehensive framework ensures no critical area is overlooked.

Key Steps:
  • Tailored Capacity Building: Unique business challenges that cannot be solved through standard training. MSMEs often require several formats to equip the skills and knowledge needed to grow their business. s. Ensure that your program offers different formats of Capacity Building such as Digital Learning, Workshops and One-on-One mentoring.
  • Curated Growth Opportunities: Facilitating curated growth opportunities for MSMEs enables them to scale effectively and sustainably allowing for a highly relevant, practical approach to tackling their unique challenges. The curated growth opportunities can be in the area of diversifying to the new trade channels, access to tailored financial products and access to services in the areas of compliance, accounting, product quality etc.

Option 2:
Curated Growth Opportunities: Facilitating curated growth opportunities for MSMEs empowers them to scale effectively and sustainably by providing targeted, customized solutions tailored to their specific needs. This approach ensures that MSMEs can address their unique challenges with practical, actionable support that aligns with their growth ambitions and operational realities.

Diversifying Trade Channels
  • Enabling MSMEs to explore and penetrate new markets, such as e-commerce platforms, export markets, or partnerships with large retailers.
  • This diversification reduces dependence on traditional markets, expands their customer base, and enhances resilience in dynamic economic environments.

Option 2:
Curated Growth Opportunities: Facilitating curated growth opportunities for MSMEs empowers them to scale effectively and sustainably by providing targeted, customized solutions tailored to their specific needs. This approach ensures that MSMEs can address their unique challenges with practical, actionable support that aligns with their growth ambitions and operational realities.

Diversifying Trade Channels
  • Enabling MSMEs to explore and penetrate new markets, such as e-commerce platforms, export markets, or partnerships with large retailers.
  • This diversification reduces dependence on traditional markets, expands their customer base, and enhances resilience in dynamic economic environments.
Operational and Business Services
  • Providing access to specialized service providers that support day-to-day operations in areas like compliance, accounting, and product quality management.
  • Compliance Support: Helps navigate complex regulatory landscapes, ensuring adherence to industry standards and legal requirements.
  • Accounting Services: Offers financial expertise to streamline accounting processes, manage audits, and improve overall financial health.
  • Product Quality Enhancement: Facilitates quality audits and guidance on meeting industry benchmarks, improving customer satisfaction and market competitiveness
  • Align with Regional and Cultural Specificities: Different regions and industries have unique challenges and opportunities. Design your framework to respect local norms, customs, and business practices.
  • Peer-Networking: Facilitating a collaborative support network allows for shared learning and experiences, enabling entrepreneurs to gain insights from those facing comparable market conditions or sectoralspecific hurdles. The inclusion of peer networking in the design fosters a sense of community and collective growth, helping entrepreneurs develop resilience, confidence, and stronger business networks.

Business Catalyst Service Highlight:
Business Catalyst has developed a proven 360° program design that provides tailored training, financing options, and market access to MSMEs. Let us help you create a similar framework for your program.

Step 4:

Implementing the
Program: From Pilot
to Scale

Successful program implementation begins with small-scale pilots that can be iterated upon before full-scale rollouts. This section outlines how to manage a smooth implementation process.

Key Steps:
  • Develop a Detailed Implementation Plan: Break down the program into clear phases with timelines, resources, and responsibilities. Assign dedicated teams for each phase to ensure accountability.
  • Pilot the Program: Begin with a pilot in a controlled setting, focusing on a manageable number of MSMEs. Gather feedback from participants and assess what worked and what didn’t.
  • Iterate and Scale: Use insights from the pilot phase to tweak your program before expanding it. Implement scalable solutions that can be replicated across different regions or sectors.
  • Ensure Continuous Support: As your program grows, ensure that MSMEs have continuous access to mentors, trainers, and resources.

Business Catalyst Service Highlight:
Business Catalyst specializes in running pilot programs and scaling
them successfully. We offer comprehensive support throughout your
program’s lifecycle to ensure it reaches its full potential.

Step 5:

Measuring Success
and Ensuring
Continuous
Improvement

Monitoring and Evaluation (M&E) is critical to understanding your program’s impact and identifying areas for improvement. This section guides you on how to track and measure success.

Key Steps:
  • Identify Key Performance Indicators (KPIs): Set clear KPIs for your program, such as:
    • Number of MSMEs supported.
    • Increase in MSME revenues
    • Job creation within supported MSMEs.
    • Access to new markets or financing.
  • Establish Data Collection Systems: Set up robust systems for data collection, including surveys, interviews, and financial reporting from participating MSMEs.
  • Regular Reviews and Feedback Loops: Continuously review the data to assess whether the program is meeting its objectives. Implement a feedback loop where MSMEs can provide input for improvements.
  • Adapt and Improve: Use the M&E data to refine the program as it grows. Flexibility is key to long-term success.

Business Catalyst Service Highlight:
We provide tools for measuring and analyzing the performance of
MSME programs. Our data-driven approach ensures you can track
success and make informed decisions for continuous improvement.

Case Studies: Business Catalyst Success Stories

To inspire you further, here are some real-world examples of how Business Catalyst has helped MSMEs thrive

Business Catalyst Service Highlight:
Our case studies showcase the real impact we’ve had on MSMEs across sectors and regions. Learn from our success stories to inspire your own program.

Tools and Resources for MSME Support Programs

Here are some essential tools and templates you can use to build and manage your MSME support program.

  • Program Planning Template: A comprehensive template to plan your program’s phases, from goal-setting to implementation.
  • Stakeholder Mapping Tool: An interactive tool to map out potential partners and their roles in your program
  • Monitoring and Evaluation Framework: : A template to help you track the performance of your MSME program.

Business Catalyst Service Highlight:
Our suite of tools and templates makes it easier for you to plan, implement, and
monitor your MSME program. Reach out to access our full range of resources.

Head to the Business
Catalyst Knowledgebase
to know more.

Conclusion: Start Building Your
MSME Support Program Today

Supporting MSMEs is critical to driving inclusive growth and innovation. With the guidance provided in this playbook and the expertise of Business Catalyst, you have everything you need to build a successful MSME support program that makes a real difference.

Call to Action:
Ready to start your MSME support journey? Partner with Business Catalyst today to bring your vision to life and empower MSMEs to achieve their potential! Reach out for a consultation now.

Interactive Elements - Interactive Elements for the
Business Catalyst Playbook

  • Decision Tree: Helping users decide the scope and focus of their MSME program.
  • Checklist Builder: A personalized checklist for each step of program design and implementation.
  • Case Study Explorer: Interactive case studies where users can explore

Spotlight: The Power of Mentoring – Finding the Right Mentors for MSMEs

The journey of an MSME is often riddled with challenges, from financial hurdles and market access barriers to operational inefficiencies. One of the most transformative tools for overcoming these challenges is mentoring. A good mentor provides more than just advice—they offer critical insights, networks, and strategies that are grounded in experience, empathy, and a deep understanding of the MSME ecosystem.

At Business Catalyst, we believe that successful mentoring relationships are at the heart of any thriving MSME support program. Our own success stories reveal that finding the right mentor can be the difference between stagnation and exponential growth for an MSME.

This chapter highlights why mentoring is so powerful and offers practical guidance on finding and nurturing the right mentor-mentee relationships.

The Impact:
of Mentorship on MSMEs

Mentorship is not just about giving advice; it is a structured, ongoing
relationship that drives MSMEs toward success through:

  • Strategic Guidance: Mentors help MSMEs develop strategic plans, set realistic goals, and navigate operational and financial challenges. They provide a “big picture” view that entrepreneurs often lack.
  • Networking Opportunities: Mentors have extensive networks of industry contacts, potential investors, and fellow entrepreneurs. They open doors to new business opportunities, partnerships, and resources.
  • Emotional Support and Confidence Building:The entrepreneurial journey can be lonely and emotionally draining. Mentors provide a sounding board, helping MSME owners stay resilient and motivated during tough times.
  • Sector-Specific Knowledge:Mentors with experience in a particular sector bring deep insights that are invaluable for MSMEs trying to break into competitive or niche industries.
  • Avoiding Common Pitfalls: Experienced mentors have already made mistakes and learned from them. Their insights help MSMEs avoid these common pitfalls, saving time, resources, and effort.
How to Find

the Right Mentor
for Your MSME
Program

Finding the right mentor is as crucial as finding the right partner. Not every mentor will be the right fit for every MSME. Here are key steps for identifying the perfect mentor:

1. Define the Qualities of an Ideal Mentor:

Before you begin your search, clarify the qualities you’re looking for in a mentor. These may include:

  • Industry expertise: The mentor should have significant experience in the specific sector or market that the MSME operates in.
  • Entrepreneurial experience: Ideally, a mentor should have handson experience in founding, running, or scaling a business, not just theoretical knowledge.
  • Commitment and availability: A mentor needs to be genuinely invested in the success of their mentee and available to offer timely advice and support.
  • Empathy and Emotional Intelligence: Great mentors don’t just focus on numbers—they understand the human challenges MSMEs face and can provide guidance with empathy.

Business Catalyst Insight:
Our network of mentors includes experienced professionals from various
industries who bring both expertise and emotional intelligence to the
table. We carefully match MSMEs with mentors based on sector, goals,
and personality fit.

2. Leverage Existing Networks:

Look for mentors within your existing networks:

  • Professional Associations:Many MSME associations offer formalized mentoring programs.
  • Industry Events and Conferences: Networking at industry events can connect MSMEs with potential mentors.
  • Government Programs: Various government bodies run mentorship initiatives for MSMEs.
  • Alumni Networks: Business schools and entrepreneurial hubs often have alumni mentoring programs that match experienced professionals with MSMEs.

Business Catalyst Insight:
As part of our mentoring services,
Business Catalyst connects MSMEs
to our global network of industry
professionals, entrepreneurs, and
subject matter experts who have
successfully navigated similar
challenges.

3. Structured Mentoring Programs:

For long-term success, mentoring relationships need structure. Ensure the mentor-mentee relationship has clear expectations from the start. Key elements to formalize include:

  • Frequency of meetings: Set a regular meeting schedule that works for both the mentor and mentee.
  • Goal setting: Each meeting should include discussions on short-term and long-term goals.
  • Evaluation: Periodically evaluate the progress made with the mentor’s guidance and make adjustments if needed.

Business Catalyst Insight:
Our mentoring programs are designed to provide structure and accountability, ensuring MSMEs get the most out of their mentoring relationships. We monitor progress regularly and provide tools for goal-setting and evaluation.

4. Create a Feedback Loop:

The best mentor-mentee relationships involve a two-way exchange. MSMEs should feel comfortable giving feedback on the mentorship experience and adjusting the relationship if it isn’t working. Similarly, mentors should provide regular feedback on the MSME’s progress and areas for improvement.

Business Catalyst Insight:
At Business Catalyst, we encourage ongoing feedback between mentors and MSMEs. Our approach ensures that both parties get the most value from the relationship.

Case Studies: Mentorship Success Stories from Business Catalyst

Conclusion:
Harnessing the Power of Mentorship for MSME Success

Mentorship is not just an optional add-on for MSMEs—it’s a powerful driver of success. The right mentor can provide guidance, open doors, and offer emotional support that helps MSMEs overcome their biggest challenges. As your MSME support program grows, it’s crucial to invest in building strong mentor-mentee relationships.

Business Catalyst Service Highlight:
With a deep network of experienced mentors and a structured approach
to mentoring, Business Catalyst can help you set up a mentoring program
that delivers real results for MSMEs. Partner with us to provide your MSMEs
with the support they need to succeed.

Head to the Mentor Quad
to delve into the Business
Catalysts Mentorship
Program for MSMEs.