How can MSME Leaders Become Technology Enablers?
The Indian MSME sector has a huge potential for growth in the post pandemic era. However, it depends on how emerging businesses adapt to change and most importantly, design future-ready business solutions. Furthermore, integrating digital solutions into independent business functions can help MSME leaders become technology enablers and facilitate business transformation across the enterprise.
For the most part, Micro, Small & Medium (MSMEs) have played a crucial role in creating employment opportunities at lower capital investments and promoting significant development in rural regions across the nation. According to MINT, “Today, over 6.3 crore MSMEs employ approximately 11 crore Indians across several domains, and contribute to around 29% of India’s GDP”.
On the other hand, although large enterprises have been quick to transition to adopting state-of-the-art technologies, MSMEs have gradually recognized the potential of digital transformation and are on their way to leverage technology for the better.
According to a McKinsey study, there is a clear distinction of growth between large and small enterprises in India. Therefore, for MSMEs to scale and offer sizable employment opportunities, it’s crucial that MSME leaders invest in technology to bridge the gap and pave the way for sustainable development.
Leveraging Technology to Fuel MSMEs
Digital technologies are paving the way for business transformation in the MSME space. From optimizing business processes through automation to integrating AI-driven tools that reduce macro-level human intervention, technology is enabling small businesses to unleash their true potential and even better, become globally competitive.
For example, using A-grade technologies can help MSMEs recruit skilled personnel, automate independent business solutions and focus on overall efficiency. Therefore, entrepreneurs must take measures to drive change throughout the MSME community and become technology enablers.
Driving Growth Through Technology-Driven Fintech Enterprises
Streamlining financial transactions in the MSME sector can undoubtedly facilitate growth and innovation. Working with tech-led financial institutions can inspire MSMEs to keep an eye on their spending and devise a future-proof framework for efficient and tailor-made financial flexibility.
On the other hand, by investing in next-gen data analytics solutions, MSME leaders can analyse performance, design efficient communication channels and focus on upscaling existing strategies to build a digital-ready India.
Leveraging Agile Supply Chain Solutions
For MSMEs that are into manufacturing, implementing robust and agile supply chain solutions are important. Using the potential of eCommerce, Indian home-grown enterprises can seamlessly drive business efficiency and offer a platform that can facilitate digital collaboration between retailers, independent logistics companies and most importantly, end consumers. As advocates of technology, MSME leaders can empower their organizations to:
Inspiring a Digital First India with SAP
For MSMEs to grow and adapt to agile business environments, it’s important that entrepreneurs think ahead and explore new business avenues that leverage the power of new-gen technology.
According to a study, “Digital technology adoption among MSMEs will grow at 25% CAGR to around $85 billion in 2024. Therefore, it’s imperative for emerging Indian enterprises to optimize future trends and emerge like champions of change.
As a technology partner, SAP has empowered the MSME sector through technologies that cater to diverse requirements across different industry verticals. From streamlining supply chain functions to increasing the functionality of logistics capabilities, solutions by SAP offer the opportunity to turn business disruptions into opportunities for growth.