By Vishal Rally, Sr. Vice-President- Product and Marketing, Tata Teleservices
Small and Medium Enterprises (SMEs) stand as the backbone of India’s economy, driving inclusive growth and development. This diverse sector, encompassing businesses ranging from micro to medium-sized, plays a pivotal role in shaping the nation’s economic landscape. SMEs contribute significantly to GDP, generating nearly 30% and employing over 110 million people. They also hold a substantial share of industrial output and exports, accounting for approximately 45% and 40%, respectively.
Despite their immense contribution, SMEs often face numerous challenges in their pursuit of expansion and competitiveness. Access to finance, adoption of advanced technologies, inadequate infrastructure, and complex regulatory frameworks hinder their growth and market penetration.
Embracing the digital revolution for sustainable growth
In the ever-evolving world of business, digital transformation has become indispensable for Indian businesses, particularly SMEs, to ensure growth and sustainability. Integrating new technologies and strategically implementing digital tools are no longer mere options but crucial for SMEs’ long-term success. The key to success lies in aligning digital strategies with clear business objectives.
SMEs should cultivate a digital mindset, reinvent their business models, and continuously innovate to unlock new opportunities and enhance competitiveness. Despite the advent of the 4th Industrial Revolution over a decade ago, SMEs have only recently begun embracing digital technologies to scale up and improve operational excellence. This delayed adoption is attributed to various challenges, including a lack of awareness of digitalization’s impact, limited growth capital, promoter-driven decision-making with limited digital expertise, and a fear of failure and resistance to change.
Holistic approach to digital readiness for SMEs
For SMEs embarking on their digital transformation journey, aligning with long-term business goals is the initial step. This involves a strategic focus on three key aspects:
• Selecting and integrating digital assets and tools tailored to business needs. This requires careful evaluation of available solutions and choosing those that align with specific business objectives and processes.
• Effectively leveraging digital tools to solve problems and enhance operations. Digital tools can streamline processes, automate tasks, and improve data management, leading to increased efficiency and productivity.
• Ensuring the workforce is equipped with the necessary skills to leverage technology for improved processes and customer interactions. This involves providing training and support to employees, enabling them to effectively utilize digital tools and enhance customer interactions.
By adopting a holistic approach to digital readiness, SMEs can position themselves for a digitally enabled future, fostering efficiency and competitiveness in the evolving business landscape.
Leveraging technology and partnerships for accelerated growth
In the dynamic environment of India’s burgeoning economy, SMEs are empowered with a multitude of avenues to achieve significant growth and success. By embracing technology, digitalization, and e-commerce platforms, they can transcend traditional limitations and tap into a vast reservoir of potential. Strategic partnerships with established technology service providers can furnish SMEs with access to invaluable resources, expertise, and networks, propelling them towards accelerated growth.
Furthermore, adopting sustainable practices not only contributes to environmental preservation but also enhances brand reputation and attracts a growing segment of conscious consumers who prioritise ethical businesses.
Way forward
In the face of the ever-changing business landscape, SMBs must be aware of the impending challenges, uncertainties, and evolving consumer patterns. With the Indian government’s ambitious goal of increasing the MSME sector’s contribution to GDP to 40 percent, particularly to uplift the rural populace, technology has shed its guise as a mere expense for SMBs and transformed into a crucial investment. This shift brings us closer to realizing India’s $5 trillion economy aspiration.
