By 2020, India is likely to have about 730 million people using the Internet, and by 2022, there will be more than 700 million smartphone users in the country.
While internet penetration has improved in areas where MSMEs are most prevalent, many of these businesses are still running in an informal manner without being registered, and thus cannot utilise the latest tech and software solutions that are being offered to registered MSMEs. However, changes in policy & regulatory changes such as GST and demonetisation pushed many MSMEs to go digital and register themselves. With the technical assistance for industries and entrepreneurs at the district-level and government-backed incubation centres still lacking, a lot more needs to be done to empower MSMEs. Successful SMEs in developed markets & 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.
MSMEs provided employment to more than 123 Mn workers in FY’16 in India and the potential for adoption of business analytics tools in the SME sector is high as it aligns with digital tools used for payments, accounts and sales tracking. On one hand where some Indian tech startups are at the forefront of the technology and the digital revolution, they have room to offer solutions to MSMEs. 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.