How technology can help SMEs to gain success?

technology

Technological transformation has changed the manner of doing business. Automation and Artificial Intelligence are taking on and gone are the days of manual work. Adoption of technology has emerged as a pinnacle priority for the success of the business.

To maintain up with the converting commercial enterprise surroundings each business enterprise wishes to be geared up with modern technology. However, many Small & Medium Enterprises (SMEs) stay far away from investing in technology due to the concern of high investments and complexity. This puts them at the risk of being left behind.

Current SME Tech Adoption Scenario

SMEs are taken into consideration to be the growth engines of growing international locations. In India too this is the fact. There are over 5.5 crores small business enterprises that increase our GDP through manufacturing, trading, exporting and uploading. As according to msme.gov.in, MSMEs contribute 45% of the entire exports and over 15 million humans are employed in this zone consistent with annum, in step with a survey carried out via CII.

To understand how era can play a key function for the boom of SMEs, we want to look at the modern country of technology adoption many of the Indian MSMEs. The research discovered that 35% of MSMEs have followed the enterprise management software program and amongst them, more than 40% of the MSMEs already use digital banking and payment services.

The first motive why SMEs do now not put money into technology is they don’t have an understanding regarding the advantages of using technology for their enterprise. They are unfamiliar with today’s tendencies in technology and have a restricted understanding concerning using it.

The 2nd reason is the cost. SMEs function with restricted capital and often they couldn’t find the money for the funding to advance up with the ultra-modern technological tendencies. Lack of resources which includes trained manpower and marketplace get admission to also are limiting using technology by way of SMEs.

How Technology Adoption can assist SMEs

  1. Helps in Automation: Automation is the need of the hour and its miles something that India’s big SME sector needs to adapt to keep away from inefficiencies and enhance productiveness. Adopting the right generation can help SMEs attention on the core commercial enterprise. Manual and Repetitive responsibilities can be prevented by way of the usage of an automated technology. Moreover, the possibilities of errors are reduced significantly. This can help the SMEs to save time and value and thereby increasing productiveness and efficiency.
  2. Focus on center activities: Running a small commercial enterprise comes with its very own challenges. The business owner has to balance between unique obligations. Due to the limited wide variety of employees, the burden on the owner increases. By the use of proper technology, SME proprietors can recognition on what topics the maximum in preference to specializing in daily tasks of the enterprise.
  3. Customer Communication: With proper generation, SMEs can beautify their communique stages. Customers admire set off a response to their queries. Using CRM software will help SMEs construct long-lasting relationships with their customers.
  4. Ease of Marketing: Having the business technologically willing lets in SMEs to reach a wider institution of customers. Creating a digital presence ought to assist SMEs to differentiate their enterprise from the competitors in a cost-effective way.

Efforts are taken with the aid of the Government

The Government of India launched the Digital MSME Scheme on 27th June 2017 to encourage era adoption amongst MSMEs. The fundamental objective of this scheme became to sensitize and inspire MSMEs to use Cloud Computing in their manufacturing and enterprise system to improve their competitiveness in the countrywide and global marketplace.

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