RedSeer Consulting, a business consulting firm from Bangaluru has noted that just 6% of the MSMEs have subscribed to digital services to carry out their operations.
One of the profound example of benefits of technology to the MSME are the online marketplaces. E-commerce portals have allowed MSME players from across industries and locations to find customer base and deliver their products in a much more systematic and documented way.
Cost, scarcity of talent and lack of overall exposure and experience are some of the key factors that deter small businesses from switching over to a digital solution. However, once they realize the benefits of digitization first hand, they are most likely to raise their spending on digitization year on year.
Anil Kumar, CEO and founder, RedSeer said, “Small businesses find it difficult to get resources who know how to operate the various software and digital tools. Since businesses are small/less complex, they do not feel need to buy or use these digital services”. “Our research with MSME validated that those who have adopted digital services show a strong benefit and optimism from their digital journey and are willing to adopt other digital services in the future especially advertising and enterprise software,” said Kumar.
As per the research by the year 2024 the existing digital services market of $1.5 billion is expected to reach close to $10 billion, a whopping 650% growth.