To support the growth of MSMEs and to ensure sustainable and equitable development during this difficult phase, PM Narendra Modi nurtured the dream for an Aatmanirbhar Bharat or a self-reliant India.
While the world was braving the aftermath of the pandemic and economies were coming to a standstill, small businesses in India also were adversely affected. Many SMBs were forced to suspend business as usual and let go of employees while others had to quickly pivot to a whole new normal.
With the uncertainties of start-stop lockdowns, unreliable cashflows and disrupted supply chains, MSMEs have been forced to accelerate digital adoption and ensure business continuity in this challenging environment.
To support the growth of MSMEs and to ensure sustainable and equitable development during this difficult phase, PM Narendra Modi nurtured the dream for an Aatmanirbhar Bharat or a self-reliant India. This initiative is aimed at reviving the economy and competing against tough competition from global suppliers. It has given Indian MSMEs a chance to build a sustainable ecosystem for themselves. MSMEs play a significant role in employment generation and socio-economic growth of the country and the Aatmanirbhar Bharat initiative has helped MSMEs by fostering innovation, supporting employment, and enhancing skill development.
The Budget allocation for MSMEs in FY22 has more than doubled to Rs 15,700 crore vis-à-vis Rs 7,572 crore in FY21. The Ministry of MSME has also started numerous schemes targeted at providing credit and financial assistance, skill development training, infrastructure development, marketing assistance, technological and quality up-gradation and other services to MSMEs across the country. Various technology leaders have started to facilitate digital adoption and creating support ecosystems for SMBs to leverage.
Digital adoption & technology innovation have always been the prerogative of large enterprises or mid-size organizations. While large enterprises have the resources and wherewithal to undergo rapid digital transformation, SMBs face various challenges such as lack of accessibility to technology, cost constraints and shortage of talent with relevant digital skills. Often, MSMEs have to compete with large enterprise organizations which have greater reach, more funds, a larger talent pool, and the required expertise. SMBs need to be supported with the right set of tools and ecosystem to bridge this digital gap.
With the global economy recovering from the pandemic, Indian SMEs are rethinking their processes, operations and customer engagement. With the support of various initiatives by the government, a new breed of SMBs is emerging. In order to consolidate their market positions, they are moving towards becoming technology dependent digital-first organisations. These digital-first SMBs are amplifying their presence and capabilities to drive sustainable business growth, productivity, and competitiveness by incorporating CRM, ERP and cloud solutions in their daily operations.
Cloud technology and applications are helping SMBs communicate, collaborate, monitor and delegate crucial tasks along with tracking real-time data and managing customer relationships. Furthermore, digital solutions are also helping SMBs by increasing reach and acquiring customers in a cost-efficient way.
SMBs are now data-driven, customer-centric, and highly automated, and are attempting to keep pace with the changing market conditions. They are more comfortable in taking on an experiment-learn-iterate approach to deliver breakthrough solutions and create new markets. These early adopters all agree that technology will serve as the greatest enabler in helping them leverage opportunities created by the emerging low-touch economy. The successes and failures of these early adopters are building a digital playbook or repository of dos and don’ts for other small and medium businesses planning their digital implementation strategies.
Source: Business World
