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During a panel discussion on ‘Easing the Adoption of Digital Solutions for MSMEs’ at the MSME Busine

MSMEs see technology as cost centre due to lack of awareness: Experts

By Shankar Krishnan --
Tuesday, 26 Jul, 2022

Technology for MSMEs

Technology has now become critical for Micro, Small and Medium Enterprises (MSMEs) and there has been a gradual uptake in the adoption of digital solutions, particularly after the pandemic, a large chunk of small businesses are still not certain of leveraging technology. During a panel discussion on ‘Easing the Adoption of Digital Solutions for MSMEs’ at the MSME Business Conclave, experts noted that MSMEs have been reluctant to adopt relevant technology tools. The percentage of MSMEs adopting digital solutions has increased from 10 per cent before Covid to 50 per cent in 2020.

According to experts, Lack of awareness has been another challenge for the MSMEs. Not many small businesses are aware of the right technology solutions required in their operations to scale up production and revenue.In fact, technology is largely seen as a cost to the business. Nonetheless, those willing to adopt technology have been able to leverage affordable solutions with a decline in the cost of adoption.

According to a recent survey of around 540 micro and small enterprises by Crisil, over 65 per cent respondents said that, they had adopted or upgraded their use of digital channels including online aggregators, social media platforms, and company websites for growth amid pandemic-led disruption last year.The growing demand for digitalization in operation was visible across segments. The highest transformation was recorded on financial transactions with around 68 per cent extensively adopting payment wallets and net banking, while a mere 4 per cent were focused on procurement or inventory management. Looking at current transformations in the Indian Economic structure it is imperative for Indian MSMEs to not be reluctant about adopting newer technologies and hence reduce their overall costs.

Source : www.financialexpress.com

MSMEs see technology as cost centre due to lack of awareness: Experts. <h2>Technology for MSMEs</h2>

Technology has now become critical for Micro, Small and Medium Enterprises (MSMEs) and there has been a gradual uptake in the adoption of digital solutions, particularly after the pandemic, a large chunk of small businesses are still not certain of leveraging technology. During a panel discussion on ‘Easing the Adoption of Digital Solutions for MSMEs’ at the MSME Business Conclave, experts noted that MSMEs have been reluctant to adopt relevant technology tools. The percentage of MSMEs adopting digital solutions has increased from 10 per cent before Covid to 50 per cent in 2020.

According to experts, Lack of awareness has been another challenge for the MSMEs. Not many small businesses are aware of the right technology solutions required in their operations to scale up production and revenue.In fact, technology is largely seen as a cost to the business. Nonetheless, those willing to adopt technology have been able to leverage affordable solutions with a decline in the cost of adoption.

According to a recent survey of around 540 micro and small enterprises by Crisil, over 65 per cent respondents said that, they had adopted or upgraded their use of digital channels including online aggregators, social media platforms, and company websites for growth amid pandemic-led disruption last year.The growing demand for digitalization in operation was visible across segments. The highest transformation was recorded on financial transactions with around 68 per cent extensively adopting payment wallets and net banking, while a mere 4 per cent were focused on procurement or inventory management. Looking at current transformations in the Indian Economic structure it is imperative for Indian MSMEs to not be reluctant about adopting newer technologies and hence reduce their overall costs.

Source : www.financialexpress.com