Page 38 - The Indian EYE 102723

BUSINESS EYE OCTOBER 27, 2023 | The Indian Eye 38

Small and medium business

in India going digital with

sustainable goals

According to a FICCI survey, SMEs in India can also take advantage of Digital Public

Infrastructure (DPI) to improve their access to finance and access to markets

OUR BUREAU
New Delhi
igitalization has gained traction with small
and medium enterprises (SMEs) in India
Dincreasingly adopting technology and digi-
tal solutions to enhance their competitiveness. This
includes the use of e-commerce platforms, digital
marketing, cloud computing, and automation tools.
According to a FICCI Report on SMEs in
India, the sector is adapting to the digital trans-
formation and adopting sustainability practices; it
identifies the challenges in this regard and, more
importantly, makes specific recommendations on
how to overcome them.
The survey reveals that SMEs have been uti-
lizing digital technology across different business
functions, with 60 per cent of enterprises using dig-
ital tools for human resources, 51 per cent for sales
and marketing, and 48 per cent for finance.
Most of the firms have experienced improve-
ments in productivity and reductions in operational The study also brings to the fore some of the key challenges faced by SMEs in integrating technology into business functions,
costs as a result of incorporating digital technology
into their business functions. Approximately 35 per especially in onboarding on e-commerce platforms (File photo)
cent of respondents reported a reduction in their
annual operational costs by 11-20 per cent as a The study also brings to the fore some of the ing awareness and adoption of these platforms.
result of digitalization. Another 30 per cent of re- key challenges faced by SMEs in integrating tech- Over the past two years, a significant number
spondents indicated that their annual operational nology into business functions, especially in on- of surveyed enterprises have taken steps to adopt
costs had decreased by more than 20 per cent. boarding on e-commerce platforms. sustainable practices. The highest proportion of
SMEs have also been leveraging e-commerce About 40 per cent of respondents highlighted enterprises (41 per cent) implemented measures
platforms and online marketplaces to reach a larger a lack of skilled resources and technological exper- to eliminate paper usage, demonstrating a growing
customer base and expand their market presence. tise required to effectively integrate and operate awareness of the need to reduce waste and con-
These platforms provide opportunities for these technologies, as well as limited knowledge of serve resources, conserve water (41 per cent), in-
SMEs to showcase and sell their products nation- business-specific technology solutions. vest in green projects (39 per cent), etc.
ally and globally. In terms of online markets and While there is a government scheme “Digital The respondents also highlighted their priori-
sales platforms, a significant 71 per cent of partic- MSME” as a part of the Champions Scheme to ty for implementing sustainable practices over the
ipating enterprises had their own online channels promote digital adoption amongst MSME enter- next two years, which included the usage of renew-
or sales platforms (such as a website to display or prises, there is perhaps a need to create greater able energy (36 per cent), and investment in green
sell products). awareness about the scheme and its utility to the projects (35 per cent). The enterprises have also
Amongst the enterprises that reported selling SMEs across India. reported benefits and cost savings by transitioning
through online channel(s), 24 per cent reported SMEs in India can also take advantage of Digi- to green and sustainable practices including the
that more than half (50 to 75 per cent) of their tal Public Infrastructure (DPI) to improve their ac- adoption of water conservation practices.
overall sales came through online platforms like cess to finance and access to markets. For instance, While the study primarily focused on the digi-
e-commerce platforms or their own websites. the GeM (2016) portal for public procurement and talization and sustainability preparedness of SMEs
Another 39 per cent of respondents reported the TReDS (2014) platform for receivables financ- in India, the survey and discussions with SMEs also
that one-fourth to half of their sales were through ing have been instrumental in the development of bring to the fore some of the key challenges and
such online platforms. SMEs in India. issues faced by these enterprises in their day-to-day
The adoption of online markets and sales plat- The survey findings reveal that while there business. Besides the need for enhancing access to
forms has increased their sales, profits as well and is reasonable awareness about these platforms finance, the SMEs also highlighted issues with elec-
reach to customers. amongst SMEs, there is a scope for further improv- tricity supply and land leasing.

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