Centre Launches TEAM Initiative

January 29, 2025

The Ministry of Micro, Small, and Medium Enterprises (MoMSME) has launched initiative aimed at enhancing the digital presence of small businesses in India. With a budget of ₹277.35 crore over three years, the MSME Trade Enablement and Marketing (TEAM) Initiative seeks to onboard 5 lakh micro and small enterprises, focusing particularly on women-led businesses. This effort is in collaboration with the Open Network for Digital Commerce (ONDC).

Objectives of the TEAM Initiative

The primary aim of the TEAM Initiative is to facilitate the integration of MSMEs into the ONDC network.
This includes providing digital storefronts, integrated payment systems, and logistics support.
The initiative aims to reduce operational barriers and enhance the credibility of participating businesses.

Workshops and Training

More than 150 workshops will be conducted across Tier 2 and Tier 3 cities.
These workshops will focus on guiding MSMEs through the process of creating compliant digital catalogues and utilising the ONDC ecosystem effectively.
Special attention will be given to women-led and SC/ST enterprises.

Financial Assistance for MSMEs

Financial support will be available for Seller Network Participants. This assistance will help with catalogue creation, operations, and account management. The goal is to ensure that small businesses can navigate the digital commerce landscape successfully.

Role of ONDC

The ONDC is a network of interconnected e-marketplaces that allows sellers to list their products directly to consumers.
It aims to democratise and decentralise e-commerce, providing a platform that promotes inclusivity and access for small businesses.

Advantages of ONDC

ONDC encourages a transparent environment for consumers.
It boosts competition by breaking down the dominance of established platforms.
This leads to a wider variety of products and potentially lower prices.
The open-source architecture of ONDC encourages innovation and cost efficiency, empowering small businesses to participate in the digital marketplace.

Challenges Facing ONDC

Despite its potential, ONDC faces several challenges. Its complexity may deter users accustomed to simpler systems. Additionally, there are concerns about dispute resolution and customer service since ONDC does not act as a direct intermediary. Existing e-commerce platforms pose competition, having established strong consumer loyalty.

Future Directions

To enhance the effectiveness of ONDC, the government must invest in digital infrastructure and promote digital literacy. Targeted outreach programs are essential to onboard small sellers. Establishing a robust dispute resolution framework will also be crucial in building trust within the ONDC ecosystem.

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