MSMEs are the backbone of our economy. But for many MSMEs, the biggest challenge is not the lack of effort. The entrepreneur is working hard, the team is working long hours, and the business is constantly busy. Yet, many times, the owner still does not know whether the machinery invested in is giving the expected output, whether employees are fully utilised, whether inventory is moving correctly, or whether profitability is being measured accurately.

This is where automation and ERP become important. ERP is not merely a software. It is a supporting system that connects the different parts of a business. The first step is to break the fear of automation and the belief that the traditional way is always the safest way of doing business.

Beyond the Excel sheet

In a traditional MSME setup, every function often operates in isolation. Purchase has its own Excel sheet, stores have separate records, production maintains registers, sales may use another software, and accounts may be maintained in Tally. Each department prepares its own reports, and everyone feels that because Excel is being used, the business is automated. But Excel is only the first step. When too many Excel sheets exist independently, they create duplication, confusion, delays and, sometimes, a blame game when numbers do not match.

ERP → ~6 departments. One system replaces six disconnected sets of records — purchase to accounts, one flow of information

ERP changes this by creating one integrated flow of information. The output of one department becomes the input of another. This gives the entrepreneur one single source of truth. More importantly, it allows the final output to be traced back to the original input.

One integrated flow of information · Each department’s output becomes the next one’s input

Purchase → Inventory → Production → Quality → Sales → Accounts

Evidence, not guesswork

This is especially important in manufacturing and agri-oriented businesses, where output is often directly linked to the quality of inputs. Many businesses know that on some days the production yield is lower, but they are not able to identify why. With ERP, batch-wise inputs can be traced and compared with the actual output. If a particular input yields higher yields and another causes waste, the data will show it. Decision-making then becomes based on evidence, not guesswork.

ERP also helps an entrepreneur better understand profitability. In many businesses, expenses and income do not always belong to the same period. Some costs may be incurred today but relate to the next period. To understand true period-wise profitability, real-time data is essential. ERP can capture the cost of goods consumed, integrate bank accounts, help with online reconciliation, and show receivables, payables and ageing at the click of a button. For a small business owner, this visibility can be transformational.

For service companies, too, ERP can create clarity. Tools like Zoho can help measure employee time, project utilisation and actual output against attendance. Once such data is available, employees can be aligned better across projects based on their capabilities. The result is faster execution, better utilisation and higher revenue.

In manufacturing, ERP can help trace batch-wise production, quality issues and after-sales complaints. If certain products repeatedly show malfunctioning after delivery, the data helps the business understand the pattern and plan maintenance or corrective action. It also helps standardise the Bill of Materials. When quantities are standardised, deviations are easier to identify, and the optimal recipe or process can be frozen.

The real investment is time

Of course, ERP implementation may look costly in the beginning. The one-time setup, training and change in working style can feel heavy for an MSME. In many cases, implementation may take around 12 months because ERP is not just about software; it is also about SOPs and the organisation’s culture. If a business is person-driven and not process-driven, the first change required is to make it SOP-driven. That is where the real investment of time happens.

Lean, from classroom to shop floor

This brings us to Lean management. Lean is essentially the philosophy of maximising output while minimising waste. Many MSMEs know the concept but do not apply it regularly. Lean identifies waste in processes and encourages continuous improvement. In traditional businesses, waste appears in many forms:

Where waste hides in a traditional business

Overproduction · Excess inventory · Waiting time · Document movement · Duplicate entries · Searching for data · Wrong-dispatch defects · BOM errors

ERP silently becomes a Lean enabler. In simple words, it helps translate Lean from a classroom concept into a daily shop-floor practice.

The Lean toolkit, powered by ERP · How one system enables each practice

The scheme that pays for the journey

The Government of India is also encouraging MSMEs to adopt Lean through the MSME Competitive (Lean) Scheme. Udyam-registered MSMEs can participate in the scheme, which begins with a Lean Pledge and provides handholding for implementing Lean tools and techniques. It is especially relevant to manufacturing MSMEs.

Three levels of the Lean Scheme · Support deepens as the level rises — Basic is free; the government funds most of Intermediate and Advanced

• Free self-learning: Basic
• Funded consultants: Intermediate
• Deepest handholding: Advanced

Additional benefits are available for eligible categories such as women-owned and SC/ST-owned units, SFURTI cluster units, units located in the North-East, and those registering through an Industry Association or OEM route.

For MSMEs, this is an important opportunity. The future of enterprise will not be built only by producing more. It will be built by wasting less, measuring better, deciding faster and creating systems that can scale beyond the founder. Lean, ERP and automation are not only tools of big companies. They are now essential building blocks for every MSME that wants to move from firefighting to future-readiness.

— Read on pallavisalgaocar.com · Enterprise India newsletter

From SEO to GEO

Ashwini Ramesh, a faculty member at GIMS, explained how artificial intelligence is redefining digital marketing for micro and small enterprises. Traditionally, businesses focused on search engine optimisation: ranking higher on Google through backlinks, keywords and website traffic. Today the game-changer is Generative Engine Optimisation, which aims to get a brand mentioned and recommended by AI platforms like Google’s AI Overview, ChatGPT and Gemini.

SEO vs GEO · Two optimisation games, one brand

The shift means MSEs now need to create content that AI can easily interpret: structured Q&A sections, expert quotes, short videos, and FAQ-style snippets that directly answer user questions.

Mentioned, not just linked

AI doesn’t just look at links; it analyses how often a brand is mentioned across trusted sources and social interactions.

If your business gets cited or tagged more frequently, it becomes AI-endorsed!

— Ashwini Ramesh, Faculty, GIMS

In this new paradigm, the metric of success is no longer just website traffic but share of voice: how often a brand appears across AI search summaries. Whether on ChatGPT, Gemini or Google’s AI Overview, the more a brand is mentioned, the stronger its perceived authority.

E-E-A-T: the four pillars

To achieve this, Ramesh outlined the E-E-A-T framework Google uses to evaluate credibility. Each pillar lands differently for a small Goan brand.

• Experience — First-hand engagement: a food entrepreneur sharing real kitchen stories
• Expertise — Skill made visible through consistent, quality posts
• Authoritativeness — Cited by reputed platforms: TripAdvisor for tourism, Airbnb for homestays
• Trust — Clear contact details, ethical content, a traceable local presence

These parameters are especially important for Goan MSEs because trust and authenticity form the foundation of our local brand identity. Whether it’s a Bicholim pottery unit, a Mapusa spice business or a small Panaji café, projecting genuine local experience is now as critical as good packaging or service.

Meeting the customer where they ask

The customer journey · And the content that wins each stage

Awareness (Broad questions; FAQs, blogs and videos win here) → Consideration (Comparisons; reviews, testimonials, expert reels) → Decision (Pricing and credibility; trust converts curiosity)

Ramesh encouraged MSEs to start listening to their customers: study how people talk about the brand on sales calls, in review comments on social media or WhatsApp, and in chatbot conversations, then use the recurring phrases as prompts for AI-driven content. Strategies also differ across regions. For exports, cultural nuance, language translation and conversational tone are vital; for domestic sales, vernacular translations help.

The AI-readable content toolkit

Structured Q&A · Expert quotes · Short videos · FAQ snippets · Review replies · Vernacular translations

The session concluded on an optimistic note for Goa’s MSE sector: early adopters tend to benefit the most, and being first to adapt confers the mover advantage. In a small yet dynamic economy where traditional craftsmanship meets new-age innovation, Goa’s small businesses can use technology not just to market products, but to tell authentic, data-backed stories the world, and the AI reading it, can understand, amplify and trust.

— Read on pallavisalgaocar.com · Enterprise India newsletter

• $2.48bn — Goa’s annual merchandise exports (Santosh Raghavan)
• 0.64% — of India’s total exports (Nikhil Sheth)
• 12% — of India’s pharmaceutical exports (Pravimal Abhishek, IAS)
• 4th — largest pharma-exporting state (Pravimal Abhishek, IAS)

Margins over headwinds

In today’s unstable geopolitical environment, Pai noted, exporters face the challenge of working with unpredictable tariffs. Yet they continue to pursue exports for the higher margins on offer, earning the country foreign exchange along the way. While India’s foreign affairs are in capable hands, he stressed, the private sector must focus on accelerating exports.

On financing, Goa offers some of the best rates in the country: EDC lends at 1%, and even 0.5% for projects that are structured appropriately, with special incentives for Goan entrepreneurs, women, and those from backward areas. Pai urged entrepreneurs to approach EDC before starting their projects, so they can be guided on capital structures and the most suitable loan options. EDC, he said, views the entrepreneur as the focal point.

Exporters provide a valuable service to the nation by earning foreign exchange.

— B. Pai, Managing Director, EDC

The manufacturing surprise

Pravimal Abhishek emphasised a fact that runs against the common perception of tourism as Goa’s leading sector: while manufacturing contributes around 16–17% of India’s GDP, in Goa the figure sits between 25% and 28%. Goa also accounts for 12% of India’s pharmaceutical exports, making it the fourth-largest pharmaceutical exporter in the country. To stay competitive, he argued, Goa must cut the time entrepreneurs spend on regulatory compliance so they can focus on innovation, market research and scaling up.

Manufacturing’s share of the economy · Goa vs the national average · Source: GIDC, Export Forum 2025

• Goa: 25–28%
• India: 16–17%

What GIDC is fixing

GIDC has already moved in this direction, Abhishek said, and the World Bank’s new Business Ready framework, which scores regulatory clarity, public service delivery and infrastructure readiness, gives the effort a scoreboard. If GIDC, financial institutions such as EDC and the banks, and the industrial associations pull together, Goa can unlock substantial export potential.

1. Simpler procedures — Streamlined processes, adopting best practices from other states
2. Buyer–seller meets — Connecting Goan units directly with their markets
3. An open-source portal — All industry services delivered transparently online
4. Digital public infrastructure — Industry-related services, seamlessly in one place

The port that changes the maths

On infrastructure, Abhishek pointed to the Logistics and Warehousing Policy 2023, under which warehousing and cold-storage facilities are coming up in industrial estates. The bigger unlock is the MPT container terminal, with Delta Ports as the PPP operator, operational from the first week of September. It will reduce dependence on the Nhava Sheva port, open a new chapter for Goa’s exports through MPT, and significantly cut logistics costs.

What Goa ships

One need not be a large manufacturer to export, Raghavan reminded the room; what matters is having the right product and entering the right market. Goa currently exports goods worth $2.48 billion a year, and half of that figure is pharmaceuticals.

What Goa ships · Composition of the $2.48bn export basket · Export Forum 2025

• Pharmaceuticals: 50%
• Engineering goods: 16%
• Marine, plastics, linoleum, ore & others: 16%
• Organic & inorganic chemicals: 10%
• Electronics: 8%

His checklist for exporters was practical:

ISO-certified quality · Consistent supply · Price resilience · Drawback schemes · Free trade agreements · Refrigerated & special packaging · Study the market first

On market selection: study foreign markets carefully, understand customer requirements, assess competitors, and be prepared to compete even with low-cost, lower-priced rivals.

The headroom

Nikhil Sheth put the opportunity plainly. Goa’s share of India’s exports stands at just 0.64%, but with 67% of its population in the working-age group, there is great potential waiting to be tapped. He demonstrated how exporters can use export-specific websites for due diligence on products and markets before venturing into new territories, and representatives from Canara Bank closed the session with the range of financial products available to MSMEs, including seamless trade-credit facilities.

0.64% — Goa’s share of India’s merchandise exports (The headroom is the point)

The roadmap for unlocking Goa’s export potential lies in competitiveness, infrastructure readiness, and the collective will of its entrepreneurs to seize the moment.

— Read on pallavisalgaocar.com · Enterprise India newsletter

Liquidity is profit

The keynote speaker, chartered accountant Maheshwar Marathe, spoke on the new era of incentives for MSMEs. He briefed the hall on the sector’s main challenges and pointed to liquidity as the persistent one, underlining that recent government initiatives have mostly resolved it. What remains, he said, is awareness among MSMEs, adoption, and implementation.

The incentive alphabet Marathe walked the room through

TReDS · MSME Samadhaan · MSME ODR · GIFT · SPICE · LEAN · CLUSTER

The government is also promoting green technology and a circular economy through recycling, and is incentivising investments made by MSMEs through upfront subsidies, interest subvention and credit guarantees. Together these account for the new-era incentives for the sector.

It is time for MSMEs to understand that liquidity is profit, and to focus on liquidity.

— Maheshwar Marathe, Chartered Accountant · keynote speaker

Waste to wealth

The second keynote, from Abhay P. Fulke, senior scientist at CSIR, Mumbai, carried the title “Waste to Wealth: R&D Innovation for Transforming India’s Bioeconomy”. India, he said, stands tall not only as a consumer of global technology but as a leader in developing solutions to major environmental problems, with a stream of government initiatives bridging laboratory research and commercial-scale application.

Fulke has pioneered a transformative bio-reactor technology that tackles two pressing challenges at once: plastic pollution and the need for renewable energy. The bacterium *Pseudomonas mendocina ABF786* biodegrades plastic while simultaneously producing biodiesel. The carbon dioxide released during the breakdown is captured and used to cultivate microalgae, which is converted into microalgal biodiesel in turn; another marine bacterium turns plastic into biocalcite.

The CO₂ dividend · Algal biomass, before and after capture

• Baseline: 1×
• With CO₂ capture: 3×

Efficiency rises further with a continuous reactor, larger volumes of starting material and replenished nutrients. The innovation aligns with the national circular-economy push on plastic reduction, providing renewable energy and sustainable replacements for petroleum-based fuels, and reflects the shift from chemical-based industries to bio-based solutions.

The panel and the prize-winners

A panel discussion on the opportunities and challenges facing MSMEs in Goa, which I moderated, brought together Pravimal Abhishek IAS (managing director, GIDC), Assocham Goa chairman Manguirish Raikar, GSIA president Aniruddh Dempo, P. P. Kulkani (assistant director, MSME DFO Goa) and LUB executive council member Rahul Parab. The discussion ranged across central and state initiatives and the sector’s pressing problems: access to easy finance, cash flow, adoption of ESG and new digital technologies, and recruiting skilled labour in Goa.

The MSME awards · Presented at the Adhiveshan

A vendor development programme followed, led by the heads of public sector units from NBCC, Mormugao Port Trust, Goa Shipyard and ONGC.

A change of guard

The Adhiveshan also marked a change in the leadership of Laghu Udyog Bharati’s Goa chapter: Rajkumar Kamat handed over the presidency to me for the 2025–27 term. Mudit Agarwal takes charge as general secretary, with Jayesh Raikar as vice president, Vibhor Keny as treasurer and Rahul Parob as joint secretary.

The event was attended by Industries Minister Mauvin Godinho along with former Union Minister Suresh Prabhu, who complimented the chapter for organising the programme and driving towards a future filled with innovation, growth, and prosperity for Goa’s business community.

— Read on pallavisalgaocar.com · Enterprise India newsletter