Insights note, edition 2: Supply chains of informal enterprises

• by Rahul Chatterjee, Rajarshi Dutta, Sombul Munshi and Shivank Mishra
• Jul 25, 2022
• 1 min
Download resource

Under our Voices of India’s MSMEs initiative, we at MSC are conducting a first-of-its-kind study of the informal MSME landscape in India. The study will share data-driven observations on the lived realities of India’s MSMEs, especially informal enterprises (IEs), through a series of insights notes and a state of the sector report.

The second of this series of notes, the Insights note, edition 2, covers insights into the supply chains of informal enterprises. The frequency of transactions with suppliers is a major determinant in defining the type of supply chains for informal enterprises. The note discusses examples from the Financial Diaries research on the informal enterprises in each kind of supply chain. The insight note focuses on the supply chains of grocery shops with the maximum scope of intervention and provides recommendations. It also delves into other aspects of supply chains critical for IEs, such as modes of payment, credit periods availed from suppliers, and how IEs try to maximize their margins with suppliers.