Unleashing the Wonders of Modern Technology for MSME Success
Micro, Small and Medium Enterprises (MSMEs) are the backbone of any economy and play a significant role in overall development and inclusive growth. With an impressive presence of over 63 million enterprises, the MSME sector in India contributes 30% to the country's GDP, 45% to its manufacturing output, and 40% to its overall exports.
Despite this, they often face numerous challenges in their effort to grow and sustain their businesses. Lack of resources, inability to scale processes and failure to embrace technology are a few of the common problems that hinder their growth.
In the rapidly evolving world where Automation and Artificial Intelligence are taking over, MSMEs need to adopt new technologies to stay relevant with time.
Dr. Abdul Kalam once stated, “Technology is the highest wealth generator in the shortest time possible if done in the right direction.” This quote holds great relevance, emphasizing the transformative potential of technology for MSMEs.
This brings us to our topic of discussion for today “Wonders of Modern Technology”. Welcome to the second article based on the "Small Business to Smart Business" podcast series, presented by DBS Bank and Money Control.
Continue reading as we delve into the valuable insights provided by industry experts - Mr. Tejas Goenka (Managing Director, Tally Solutions), Mr. Amit Saluja (Senior Director, NASSCOM) and Mr. Sudarshan Chari (Executive Director and Head, DBS Bank).
Importance of technology adoption for MSMEs
In today's fast-paced and digital-driven world, the adoption of modern technology has become crucial for the success and growth of small and medium-sized enterprises. It has emerged as a lifeline for businesses, more so after the pandemic.
By incorporating innovative tools and digital solutions into their operations, MSMEs can streamline processes, enhance productivity, and improve efficiency. Technology adoption enables them to automate tasks, manage inventory, track sales and customer data, and optimize supply chain management.
Mr. Tejas Goenka from Tally Solutions adds, "Automation empowers MSMEs to focus on their core business operations, freeing up time and resources. By streamlining processes and leveraging technology, MSMEs can drive efficiency and productivity, allowing them to concentrate on running their business."
Embracing technology opens doors to new market opportunities by expanding MSMEs' reach through e-commerce platforms and digital marketing strategies. It not only enhances their overall competitiveness but also enables them to adapt to changing market dynamics, stay ahead of the competition, and fuel sustainable growth in the long run.
Recognizing the significance of technology and actively adopting it has become a strategic imperative for MSMEs aiming to thrive in the modern business landscape.
Exploring barriers to technology adoption in small businesses
While there are immense benefits of technology adoption, SMEs often face challenges when it comes to adopting them. These obstacles can be attributed to three main reasons.
1. Awareness
Lack of awareness is one of the biggest obstacles hindering technology adoption among SMEs. Many small companies are not fully aware of the potential benefits that technology can bring to their productivity and efficiency. Limited knowledge about the latest technological trends and their applications further contributes to this awareness gap.
2. Affordability
SMEs often operate with limited capital. Financial constraints pose a significant barrier to technology adoption for SMEs. The costs associated with investing in new technologies and keeping up with evolving trends restricts them to reach out to technology solution providers. Additionally, the lack of resources, including trained personnel and access to markets, further restricts their ability to embrace technology.
3. Accessibility
Accessibility to the right technology solution providers is also a struggle for many SMEs. These businesses often find it difficult to identify the appropriate experts or resources that can guide them in adopting technology. They seek assistance on where and how to begin their technological transformation and what kind of infrastructure is required to support it. Due to lack of accessibility, all of these questions often remain unanswered leading to technology adoption barriers.
Key actions for success
Small businesses can unlock the transformative power of technology by addressing the above-mentioned barriers.
"MSMEs can pave their way to success by embracing technology and adopting a smart business approach. Setting up a robust digital infrastructure, investing in accessibility, and striving for continuous improvement in digital transformation can help them navigate the ever-evolving business landscape successfully,” says Mr. Sudarshan Chari from DBS Bank.
Mr. Amit Saluja from NASSCOM emphasizes the importance of strategic actions for MSMEs. He adds, “By developing point-blank solutions, going paperless, and harnessing the power of AI, MSMEs can optimize processes, achieve automation, and unlock their full potential."
The bottom line
Technology transformation is crucial for business relevance and sustainability. With emerging technologies like Artificial intelligence, Machine Learning, Augmented Reality, Blockchain, Internet of Things, Robotics, etc., making their way into every aspect of business operations, small businesses have a tremendous opportunity to leverage these advancements for their growth and success.
Courtesy - MoneyControl
