New Delhi (NVI): Tech major Intel, in association with the Ministry of Micro, Small and Medium Enterprises (MSME) and India SME Forum, has launched a countrywide initiative to enhance technology absorption among Indian SMEs.
The launch programme was attended by Joint Secretary in the MSME Ministry Alka Arora, India SME Forum President Vinod Kumar Wuthoo, brand guru Prahlad Kakar and Intel India’s Director (Marketing) Roshni Das and Head (Commercial Marketing) Eashwari Deshpande.
Digitally-empowering MSMEs is an urgent requirement to initiate value creation among SMEs.
While new-age companies are looking to strengthen their technology-based products and services, older and more traditional SMEs want to transform their legacy infrastructure to keep pace with increasing competition.
In a world of agile tech-based companies, older companies must modernise and transition to be a software defined business if they want to retain their competitive edge. In the current Digital Age, customers demand seamless access and will not stick to a business that does not deliver just that, while digital transformation will mean improved profitability and revenues for every business.
A survey conducted by India SME Forum as a part of its annual State of the MSME study in 19 states showed that over 34 per cent of the overall 1,29,537 MSME respondents are employing digital means of communicating with Employees, Customers and Suppliers whereas only 7 per cent have fully embraced digital technology or SAAS Solutions.
Over 50 per cent of the MSMEs highlighted several benefits (increase in profitability, operational efficiency and improved customer engagement).
However, 70 per cent of the MSME respondents cited lack of knowledge as key barrier for wider adoption.
Major causes for low technology adoption that have been cited by the MSME respondents in the survey are :
1. Lack of understanding and guidance of business benefits, technology can deliver
2. Resistance to incurring upfront investment-related costs to implement technology
3. Lack of skilled / trained manpower to manage technology setups
A majority of India’s employment is being offered by MSMEs with more than 123 million workers employed in the financial year 2016.
Successful SMEs in developed markets and all over the world have adopted technology for higher productivity, better customer experiences and for scaling up their operations and presence, ensuring sustainable growth and profits.
While Indian tech startups are at the forefront of the technology and the digital revolution, changes in policy and regulatory changes such as GST and demonetisation have already pushed many MSMEs India to go digital.
Tech platforms such as SaaS and business analytics offerings can help MSMEs connect with potential clients to grow their business further, manage inventory smartly and enhance delivery efficiency of their product or services, manage labour, RoC, IT, GST filings, accounts and more.
The National Campaign for Accelerating Business using Technology was launched to enable Indian MSMEs for technology absorption resulting in increased revenues, lower risks, reduced costs and sustainable competitiveness in the International markets.
The first phase of this series, saw over 54,000 SMEs enroll for the showcase on Tech Tools for Business, workshops on using technology, branding, and compliance along with face to face sessions with mentors and speed networking sessions.
Covering 9 cities, the first phase of the initiative had around 2800 entrepreneurs attend and the content, discussions, FAQs and tools will now be made digitally available not only to those who enrolled, but also to the registered base of MSMEs across the country.
Arora, while inaugurating the series finale in Delhi, congratulated the India SME forum and Intel for organising the programme across the country.
She emphasised the need of technology for the development of about six crore of MSMEs in India. “Many of them are in the micro sectors, some of them in the small, medium enterprise but today for any business to take it to the next level, technology is of prime importance,” she said.
“Tech platforms such as SAAS and business analytics offerings can help MSME’s connect with potential clients to grow their businesses further,” she added.
On the occasion, Wuthoo stated that, “The scale of digital transformation this country presents is tremendous and greater digitization of MSMEs has the potential to triple the MSME sector’s GDP contribution (from the current 8 per cent share), heighten employment opportunities for India’s growing workforce and boost overall economic growth.
“As the largest SME Institution in India, India SME Forum is committed to take global best practices and solutions to all the progressive MSMEs of India and we are thankful for the support of the Ministry of MSME and Intel. We are confident that our MSMEs, are extremely open to implementing New technologies, Solutions and Tools for boosting profits and growth.”
Roshni Das said, “MSMEs are the backbone of the Indian economy and pivotal to driving future innovation and growth in the country. Intel is committed to working with the ecosystem to ensure education, technology access and support for these businesses. We’re excited to collaborate with the India SME Forum to digitally empower MSMEs in India, enabling greater productivity, efficiency, opportunity and business success.”
