Why Indian MSMEs Must Ride the Digitalisation Wave
*This is a sponsored article by Dell India.*
India’s micro-, small- and medium-sized enterprise sector is a vital contributor to the country’s growth story. Today, more than six crore MSMEs contribute 8 percent to India’s GDP, 6.11 percent to its total manufacturing output, and 24.6 percent in services.
The story, however, must not end here. By adopting digitalisation, this vibrant sector can boost its revenues by nearly 51 percent.
Digitalisation At A Glance
In 2018, India’s MSME segment saw a 60 percent increase in business, driven by online trading and mobile applications. A deep dive study conducted by YES Bank reveals that over 50 percent of digitally-empowered MSMEs improved their profits, operational efficiencies, as well as customer engagement.
On the flipside, only 5 percent embraced complete digitalisation, even though over 60 percent were digitally enabled. The need for technical knowhow and skilled resources have hindered a more widespread adoption of digital technologies across the sector.
The government has lined up several initiatives towards this end, including Technology Centres to speed up the digitalisation process. These 18 Technology Centres built across the country aim to provide access and advisory services on the latest technologies to MSMEs, while also doubling up as skill development centres.
Private players are also taking proactive steps to understand and support the sector in its digitalisation journey. For the past three decades, Dell India has been partnering with MSMEs on a variety of initiatives. The company unveiled the Dell Small Business Solution Centre in Bengaluru last year—designed to provide first-hand experience of 30+ solutions, curated specially for MSMEs, by Dell and its associates, including Microsoft, Intel, and McAfee, among others. The centre will also host networking and collaboration events to further foster the Indian MSME and start-up ecosystem.
The Dialogue, a joint initiative by Dell and Inc42, scheduled on June 27, 2019, aims to provide an exclusive platform for tech companies, start-ups, and MSMEs to meet and discuss opportunities for the sector, including how to upscale their digitalization journeys and overcome common challenges. In 2018, the company organized ‘Dell Business Forward’ in collaboration with Chamber of Marathwada Industries and Agriculture. The event helped businesses gauge their technical readiness and understand apt solutions through direct interaction with IT experts.
Apart from such programmes, Dell provides a 360-degree solution for MSMEs that involves expert advice, curated products, and 24x7 support to help enterprises go digital. The company’s Small Business Technology Advisors work closely with MSME businesses to understand their needs, answer their queries, and help implement apt solutions.
Digitalisation: The Wave That Will Sweep Over
The MSME sector is poised to be a $866-billion industry by 2020, as per a DataLabs report, and it is unlikely that the existing rates of low technology penetration will continue. In fact, IDC research states that, worldwide, MSME spends on technology and allied services will touch $684 billion by 2021, with India being the fastest emerging market, growing at 7 percent CAGR between 2016-21. With companies like Dell strongly focusing on small businesses and providing dedicated solutions, the MSME sector will certainly thrive and ride high on the digitalisation wave.
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