MSME Trade Enablement and Marketing (TEAM) Initiative

MSME Trade Enablement and Marketing (TEAM) Initiative

You, as a new MSME owner, can benefit greatly from the MSME Trade Enablement & Marketing (TEAM) Initiative launched by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The scheme is designed especially to help micro and small enterprises embrace e-commerce by leveraging India’s digital public infrastructure through ONDC. With a focus on women-led businesses and helping you reach wider customer bases, this initiative intends to reduce the cost of doing business, formalise your operations, and build digital transaction credibility.

What is the MSME Trade Enablement and Marketing (TEAM) Initiative?

The TEAM Initiative was launched on 27th June 2024 under the Central Sector Scheme Raising and Accelerating MSME Performance (RAMP) Program. It aims to propagate e-commerce adoption among MSMEs by integrating them into the ONDC network.

The initiative has a financial outlay of Rs 277.35 crore allocated over three years (2024-2027), targeting around 5 lakh MSMEs, with 50% women entrepreneurs getting special focus. National Small Industries Corporation (NSIC) is the implementing agency running awareness workshops and onboarding sessions across Tier 2 and 3 cities

Objectives of the MSME TEAM Initiative

Key Features of the MSME TEAM Initiative

Financial Assistance Offered Under the MSME Team Scheme

The MSME TEAM Initiative primarily provides:

Name 

Incentives  

Cataloguing  

Incentives to Selling Network Participants (SNPs) Up to INR 2,500 per MSE 

  1. B2C @INR 50/ SKU (Stock Keeping Unit)

  2. B2B @INR 125/ SKU 

 

*To be paid out only after 2 successful transactions* Targeting - 5 lakh MSEs 

Transactions

Incentives to SNPs Up to INR 5,000 per MSE 

  1. B2C @5% of Sales 

  2. B2B @INR 250 per transaction

 

These incentives will come in place only after the first 2 transactions have been done. Targeting - 1.5 lakh MSEs 

Demand Generation

Incentives to Buyer Network Participants (BNPs) Up to INR 500 per MSE @INR 50 per order 

 

These incentives will come in place only after the first 2 transactions have been done. Targeting - 1 lakh MSEs 

Logistics 

Incentives to MSEs 

  1. B2C: @ INR 50 per order for 10 orders per MSE 

  2. B2B: @INR 200 per order for 10 orders per MSE 

These incentives will come in place only after the first 2 transactions have been done. Targeting - 1.25 lakh MSEs 

Packaging

Incentives to MSEs 

  1. B2C @INR 20 per order up to 10 orders 

  2. B2B@INR 250 per order up to 10 orders 

These incentives will come in place only after the first 2 transactions have been done. Targeting - 1.25 lakh MSEs 

Additional Initiatives to support MSME by ONDC 

Activity 

Description  

  1. Awareness Creation & Demand Generation 

Incentives:  

  • Rs. 50 per order (max 10 per MSE) via Buyer Network Participants.

  • Rs. 450 per MSE onboarded for digital marketing. 

  1. Onboarding & Digital Catalogue Creation 

Incentives:  

  • Rs. 2,500 per MSE for cataloging (B2C: Rs. 50 per SKU up to 50 SKUs; B2B: Rs. 125 per SKU up to 20 SKUs). 

  • Minimum 2 successful orders required before claiming benefits. 

  1. Account Management Support

Incentives (capped at Rs. 5,000 per MSE) for SNPs to assist with order fulfilment, logistics, operations, and contract management. 

Payouts: 

  1. B2C: 5% of net sales (up to Rs. 5,000 per MSE). 

  2. B2B: Rs. 250 per transaction (up to Rs. 5,000 per MSE).

  1. Transportation & Logistics Subsidy 

Incentives through SNPs: 

  • B2C: Rs. 50 per order (up to 10 orders per MSE). 

  • B2B: Rs. 200 per order (up to 10 orders per MSE). 

  1. Packaging Material Subsidy 

Incentives through SNPs: 

  • B2C: Rs. 20 per order (up to 10 orders per MSE). 

  • B2B: Rs. 250 per order (up to 10 orders per MSE).

  1. Packaging Design Subsidy

Incentives through Indian Institute of Packaging (IIP): 

  • 20% of design cost or Rs. 2,000 per MSE (whichever is lower). 

 

Note 

  • Benefits for activities 3, 4, and 5 must be availed within 6 months of the first transaction. 

  • Each MSE can claim cataloging benefits from only one SNP

  • SNPs using AI-based cataloging cannot claim separate cataloging support. 

  • No SNP can claim over 20% of the budget allocated for activities 2-5.

Eligibility Criteria for MSME TEAM Initiative

Eligibility

As an aspiring MSME owner, you are eligible if:

Non-Eligibility

You may not be eligible if:

Documents Required for the MSME Team Scheme

How to Apply for the MSME TEAM Initiative

Step 1: Ensure you have a valid Udyam Registration for your MSME.

Step 2: Visit the official MSME TEAM website or NSIC portal.

Step 3: Register yourself and submit your MSME details with supporting documents.

Step 4: Attend workshops or training sessions conducted by NSIC and partners.

Step 5: Get assistance for digital onboarding on the ONDC platform.

Step 6: Set up your digital storefront, create product catalogues, and enable integrated payments.

Benefits of the MSME TEAM Initiative

You will be able to showcase your products on digital platforms under Open Network for Digital Commerce (ONDC) , helping you reach more customers across India. This increases your chances of growing sales beyond your local market.

By using shared digital infrastructure, you can cut down on marketing, logistics, and customer acquisition costs. This makes it easier and cheaper for you to do business online.

As you start transacting digitally, your business builds a digital footprint and transaction history. This helps establish your credibility with customers, partners, and financial institutions.

If you're a woman business owner, you'll get priority support under this scheme. This includes access to resources, workshops, and onboarding help designed just for you.

You can join training and awareness workshops that teach you how to run your business online. This helps you confidently handle digital tools, payments, and product listings.

The scheme helps you set up smooth logistics and payment gateways. This means faster deliveries, easy payments, and a better experience for both you and your customers.

Real-World Examples of MSME TEAM Initiative

Scheme Name

How It Links with MSME TEAM Initiative

RAMP (Raising and Accelerating MSME Productivity)

MSME TEAM is a sub-scheme under RAMP focusing on digital trade.

Stand Up India Scheme

Promotes entrepreneurship which can leverage TEAM’s digital platform.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Supports MSMEs financially; synergises with TEAM’s marketing support.

Final Words

As a new MSME owner, the MSME TEAM Initiative is a great opportunity to digitally transform your business, gain access to digital marketplaces, and connect with a larger customer base, especially if you are a woman entrepreneur. Embrace this scheme to enhance your competitiveness and grow your enterprise in the digital economy.

Related Schemes