May 22, 2025
by Deep Thakkar

The Silent Strength of MSMEs vs the Hype of Startups

By : Deep Thakkar

Startups are everywhere — in the news, on social media, and in conversations about the future of business. They’re exciting, fast-paced, and full of promise. From tech-driven apps to billion-dollar unicorns, startups seem to be the face of innovation today. But while they make all the noise, there’s another, quieter side to the business world — one that keeps India running every single day: MSMEs, or Micro, Small, and Medium Enterprises.

Startups are everywhere — in the news, on social media, and in conversations about the future of business. They’re exciting, fast-paced, and full of promise. From tech-driven apps to billion-dollar unicorns, startups seem to be the face of innovation today. But while they make all the noise, there’s another, quieter side to the business world — one that keeps India running every single day: MSMEs, or Micro, Small, and Medium Enterprises.

But here’s the hard truth: most startups don’t survive. Studies show that 9 out of 10 startups fail, and in India, nearly 70% shut down within just five years. Why? Sometimes the idea doesn’t meet a real need. Other times, it’s poor financial planning, team issues, or simply growing too fast without a strong foundation. The pressure to perform can be overwhelming, and many burn out before they ever break even.

On the other hand, MSMEs don’t usually make headlines, but they make a huge impact. India has over 63 million MSMEs, and they account for 30% of the country’s GDP, 48% of exports, and provide jobs to over 110 million people. That’s massive.

These are the local manufacturers, service providers, family-run businesses, and small units in towns and cities across India. They don’t chase massive funding rounds or viral growth. Instead, they focus on running steady businesses, serving loyal customers, and building something that lasts. They may grow slower, but they also tend to survive longer.

So, what if instead of comparing startups and MSMEs, we started thinking about how they can learn from each other?

Startups can bring innovation, speed, and new tech. MSMEs bring experience, grounded business sense, and stability. Together, they could do incredible things. Imagine a world where a startup’s fresh idea is powered by an MSME’s strong supply chain and trusted customer base. That’s real growth.

But for that to happen, there needs to be more networking, collaboration, and openness. Right now, both ecosystems often operate in silos. MSMEs stick to what they know, while startups live in their own fast-moving bubble. Breaking that wall could lead to powerful partnerships — and stronger businesses on both sides.

In the End…

Startups are exciting, no doubt. But MSMEs are dependable. One brings the dream, the other brings the discipline. And if India truly wants to build a strong, inclusive economy, we need to stop glorifying one over the other — and start appreciating what both bring to the table.

Because real success isn’t just about making noise. Sometimes, it’s about staying strong — quietly, consistently, and for the long haul.

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