All facets of life are significantly impacted by digital technology, which is also revolutionising business in the world economy. It can aid MSMEs in extending their domestic and global market reach. It is transforming MSMEs into new forms more quickly. Anyone may become well-known in the industry with the right digital techniques and high-quality items.
In our increasingly digitally oriented society, developing an authentic presence is essential. It aids in drawing in the intended audience, which will assist the business in maintaining a steady and dependable image in the market. An essential quality that would inevitably aid MSMEs in growing online is reliability. Various MSMEs will be able to pass the digital barrier by resolving these problems.
MSMEs and the Indian economy
The MSMEs serve as the foundation of our economy and account for 30% of India’s GDP and jobs. 56 million MSMEs act like entrepreneurs by adding items to meet the unique demands of the country. MSMEs play an important role in creating jobs locally, which is crucial for a developing nation like India.
In a study performed by the India SME Forum with 1,29,537 MSMEs as participants, it was discovered that around 50% of MSMEs claimed to be aware of the advantages of using digital technology. A startling 70% of MSMEs, however, lack expertise and comprehension of digital technologies. The biggest barrier mentioned was ignorance, which prevented a wider acceptance of technology.
For many MSME sectors, the pandemic marked the beginning of a transformation. By holding educational seminars to aid these convectional enterprises in expanding their businesses and surviving in these challenging times, the India SME ministry is making great efforts to close the digital divide.
The MSMEs in the Indian economy face certain issues that curb their full potential. Let us take a look at them.
Bottlenecks for MSMEs
Now, MSMEs frequently struggle with a shortage of money as a result of poor access to financing. As a result, there is a weak technological foundation, which leads to the output of poor quality. People avoid learning about digital technology as a result of this loop. Even if a firm has great ideas for digital marketing, it will not be able to apply them effectively to produce lucrative outcomes without tech-savvy and experienced workers. The majority of issues MSMEs experience may be boiled down to a lack of funding and technological know-how. These elements make it difficult for MSMEs to reach their full potential, grow and become well-known.
Overcoming these issues presents Micro Small Medium Enterprises with a fruitful chance to enhance the foundation of their business. Due to their lack of awareness and expertise in digital marketing, many conventional and traditional businesses are unable to implement the proper digital technology solutions for their businesses, which may have an impact on the total volume of their operations. People who distrust technology and are hesitant to invest in more expensive but effective digital equipment typically lack knowledge on how to use it and its advantages.
How can digital technology help MSMEs adapt and take on new forms?
Innovation is now more accessible thanks to new technology. To increase sales in the digital realm, it is vital to make sure that you stay current with trends and often refresh your items. Innovation is essential for this since you want something that will make you stand out. Small companies may benefit greatly from technologies like AI/ML, IoT, and data intelligence, which can help them provide clients with a superior experience and help them establish an educational online presence. MSMEs are able to effortlessly compete with major company tycoons because of these digital technologies.
You need data insights to better comprehend the market environment while making crucial business decisions, such as whether to adopt a new tool or join a new market. Consider concentrating on Data Insights to enhance your comprehension of the digital world. They will make it easier for you and your business to adopt new technology.
MSMEs have emerged as the new economic pillars of India and have played a critical role in the development of our nation. These industries have made a significant contribution to India’s socio-economic development. Small businesses can see significant change thanks to digital platforms, which are essential tools that can advance your organisation with the aid of the right methods. To assist you in adjusting to the rapidly changing digital technology, the Ministry of MSMEs offers learning programmes and programmes. Even better, you may register yourself on a website called Udyam to learn about the helpful policies that the government offers. As they become more aware of the advantages of new digital technology, traditional firms are beginning to embrace the idea.