Small and medium-sized enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs) have always been catalysts in the growth of an emerging economy like India where it has contributed to nearly 60 per cent employment and roughly 40 per cent of the GDP of the country. Unfortunately, small firms are always deprived of quality managerial resources and they lack time and capability to acquire it preventing them to achieve exponential growth.

The pandemic has changed the economic dynamics completely, largely affecting recruitment activities. The Indian economy witnessed one of its biggest layoff drives in the last decade or so. Not only entry-level candidates but even the experienced ones were also laid off. This has forced veterans and experts to come out of their comfort zone and look for other avenues to survive. Today, experts are available for short term project-based roles across different skill sets and are nurturing small organisations to gain critical insights to excel.

SMEs and MSMEs have grabbed this opportunity with both hands and acquired the services of such freelancing experts. This was a blessing in disguise for SMEs and MSMEs as it was not heavy-on-budget conventional employment and allowed them to access their expertise for a shorter duration. With the rise of technology and shrinking, geographical boundaries business saw a swift upward trend, and this has demanded quick responsiveness from small organisations as well. With the help of such freelancing experts, small firms embraced this change successfully. For example, internal teams are now working with external management experts to form Go-to-market strategies or venture into undiscovered territories. It is now common for SMEs to have in-house leaders implementing technological up-gradation.

One of the most prominent reasons for SMEs and MSMEs to adapt to the gig model was the fact that they could afford to be flexible. With a limited number of workforce and flexible work policies, it was always possible for them to gel with the outside experts. It was a little difficult for large organisations, as they had to work on a more structured basis and take care of the career progression of their workforce too.

For the gig experts, this scenario worked well. They started getting the independence that they longed for while being a part of a large organisation. They also got a sense of ownership working independently in shaping the policies for small organisations.

Working for smaller diverse organisations allowed experts to switch industries and explore new fields. Some wise leaders started treating gig experts as their partners in this win-win situation for both the parties.

To fully reap the benefits of incorporating freelance experts into the workforce, organisations require new tools and approaches. Businesses must attract and retain the best talent, implement systems to manage them and address the challenges faced when incorporating a new way of working into the organisation.

As the gig economy grows rapidly, more and more businesses are rethinking their corporate structures and are adjusting their practices accordingly. SMEs are emphasising tapping into this new pool of talent, and large corporations have realised the benefits that this knowledge-based economy can bring in this ever-changing marketplace.

One statistics suggests that India’s freelancing workforce is the second largest in the world. Almost 15 million people contribute to 40 per cent of the world’s freelancing workforce. Till now this was largely-dominated by the millennial. With veterans and experienced people coming into the mix, things are looking to shape up nicely. Interesting research by LinkedIn suggests that SMEs and MSMEs have accounted for nearly 55 per cent of the gig hiring during the last year. This number is surely going to increase in the coming years.

Looking at this trend, my hunch is that more than 60 per cent of the skilled workforce in India is going to turn to freelance by the end of 2023. SMEs and MSMEs are going to become the largest employers with abundant work/growth opportunities to offer. It is safe to quote, “SMEs and MSMEs are going to form a strong backbone for the Gig economy to flourish in India.”