MSMEs and digital technology can support Indian economy

Digital Technology has a huge impact on all conceivable aspects of life, and it is transforming business in the global economy. It can help MSMEs’ expand their market reach at domestic and international levels.

It is changing the shape of MSMEs at a faster pace. With appropriate digital strategies and quality products, anyone can make a big name for themselves in the market.

Creating an authentic presence is necessary in our digitally inclined world. It helps attract the targeted audience, which will help the company have a consistent and reliable image in the market.

Reliability is an important feature that will naturally help MSMEs expand in the digital space. Overcoming these issues will help various MSMEs survive the digital roadblock.

The MSMEs have a 30 percent share in India's GDP and employment and act as the pillars of our economy. 56 million MSMEs add products to address the specific needs of the nation and thus behave like entrepreneurs. MSMEs help to generate employment at the local level, and for a country like India, it's the need of the hour.

India SME forum conducted a survey, which had 1,29,537 MSMEs respondents; the survey showed that around 50 percent of MSME respondents claimed to know about the benefits of the usage of digital technologies.

However, a shocking 70 percent of MSMEs lack the knowledge and understanding about digital tools. The main obstacle cited was the lack of knowledge which restricted the wider adoption of technology.

The pandemic became the revolution phase for various MSME sectors. India SME ministry is working hard towards lowering the digital gap by conducting informative workshops to help these convectional companies spread their business and cope up in these tough times.

Now, lack of capital due to inadequate access to finance is a common issue that MSMEs face. Because of this, there is poor technological infrastructure which then results in low-quality production. This cycle causes people to avoid learning about digital technologies.

Without tech-savvy and knowledgeable employees, digital innovation is not possible, so even if the company comes up with good digital marketing ideas, they cannot implement them properly to get profitable results. Most of the problems that MSMEs face can be narrowed down to the lack of capital and technological expertise.

For Micro Small Medium Enterprises, overcoming these problems offer a prosperous opportunity to strengthen the foundation of their company. Many traditional and convectional companies lack the understanding and knowledge of digital marketing; that makes them distant with correct digital technological solutions for their enterprises, which can affect their overall business turnover.

Those who do not trust technology and hesitate to invest in pricier but more effective digital equipment generally do not have the know-how about technology's usage and benefits.

This article has been written by Lokendra Ranawat, Co-Founder & CEO, Woodenstreet