Transformation of SMEs Foster Digital India

Welcome to our 5th and last part of “SME Week Series” and today we underline the significance of SMEs on the realization of a Digital India. It will be extremely useful for all those working in the space of SME, Retail, Manufacturing Unit, Association and other relative sectors to learn new innovative approaches in running a successful SME.

SME’s Building The Digital India Dream           

Increasing access to the Internet even in smaller towns and the rate of Smartphone-led connectivity spreading across the country meant India was prime ground for a campaign like Digital India. With various B2B start-ups viewing the long under tapped SME segment as a huge opportunity, Digital India outcomes may beat expectations sooner rather than later.

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There are reportedly more than 40 million SMEs in India. Start-up names such as Tolexo, Power2SME, Rubique and NowFloats aiming to move all kinds of B2B relationships and transactions towards full cycle Digitalization, indicates more businesses are now online.

Digital Commerce Shaping SME Space

The world has taken rapid strides in Internet penetration & expansion of mobile networks. India is at the forefront in this digital revolution. Today, India has the 2nd largest mobile phone user base and the largest Internet user base in the world. These numbers are expected to double by end of 2017. Commerce is increasingly becoming enabled by digital transactions. India has 40 million online shoppers and alternative methods like pre-paid cash cards & digital wallets are disrupting structured businesses like banking.

A variety of business functions of a small business can be enhanced through digitalization. Social networking, QR codes, mobile apps and digital interfaces can change marketing, customer service, payments, inventory management, accounting, banking and supply chain management and improve speed and efficiency.

Digitalization also helps in reducing errors and scaling operations faster. Surely, SMEs have a lot to benefit from if they adopt Digitalization.

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Some Immediate Needs Of SME

Easy Access to Finance

SMEs need to be adequately financed at each stage of their lifecycle. Developing effective lines of credit and innovative financing solutions helps SMEs gain the much-needed credit for ramping up growth. Good structures, including supply chain, will reduce cost of finance.

Human Capital

The most important piece that helps SMEs differentiate and scale up is ‘People’. SMEs can have tremendous advantage by developing a team of highly skilled & motivated work force. Regular training programs help delivers better customer service, ensuring customer satisfaction & retention.

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Effective Business Support Systems

Any business needs to develop strong systems to develop innovative products through accurate understanding of the changing market conditions and analysis of customer behavior and needs. Use of these support systems allows SMEs to learn from the collective wisdom of all successful and failed enterprises and harness them in their own ecosystems.

Conclusion

A dynamic global business environment has exposed Indian MSMEs to a plethora of opportunities as well as challenges. The key for SMEs remain leveraging tools for a sound business plan and model.

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