Technology for MSMEs: Covid-hit micro, little, and medium enterprises (MSMEs), which had braved the 1st and second waves of the pandemic, are seeking to step up investment in digital technologies along with hiring more men and women this year and would continue the momentum next year as properly, one of the major executives at information analytics and consulting firm Kantar told TheSpuzz Online in an interaction. While each one out of 4 MSMEs was seeking to raise its employee strength for the duration of 2020 but it took a back seat due to Covid. However, towards the finish of 2020, at least one out of 3 MSMEs was seeking to raise its employees for the next year and this would continue in the coming year as properly, according to Indranil Dutta, Associate Vice President, Insights Division, Kantar.
“Also, while their (MSMEs) investment in digital technology may not be significant in comparison to pre-Covid period, but we may see at least one-third of MSMEs investing in technology by end of this year and next year as well vis-a-vis only 20 per cent looking at technology-related investments in 2019. We will see this trend continue irrespective of whether there is a third wave or not. There won’t be a U-turn in using digital advertisement. Digital will continue to grow,” mentioned Dutta.
Digital adoption has assumed higher significance for MSMEs in the post-Covid world as customers progressively shift to on the net channels for the buy of goods and services. According to a post-Covid 2020 study by Cisco surveying 1,424 little and medium enterprises in the Asia Pacific area, India was ranked ninth in terms of the Asia Pacific SMB digital maturity ranking. However, 68 per cent of Indian SMBs sought to digitally transform to introduce new items and services, differentiate themselves from the competitors, and develop, although 60 per cent recognized that competitors is transforming and they should hold pace.
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Kantar had also noted in its current annual ITOPS study for 2020, covering 7,000 MSMEs in 35 cities, that almost 40 per cent of the MSMEs in 2020, as compared to 34 per cent in the earlier year, looked towards launching new items and services in the coming year. Also, about 25 per cent of MSMEs in 2019 have been seeking to raise their employee strength in 2020. The program was later shelved due to Covid as several MSMEs had let their workers go. However, as per the most up-to-date ITOPS information, hiring is one of the main business enterprise plans now for each one out of 3 MSMEs in India. Likewise, in comparison to just 15 per cent MSMEs in 2019 seeking to upgrade technologies and about two out of 10 firms wanting to focus on their digital presence, practically one-fourth of MSMEs now have planned to upgrade technologies and 3 out of 10 have planned to focus on their digital presence with activities like promoting, marketing and advertising on the net, and so on.
“Businesses that went into the shell post first-Covid wave are now trying out new things and would continue to do that with a mindset change that Covid is here to stay for a much longer period than expected. So, playing safe would be risky. MSMEs no longer want to play safe except few of them and are willing to invest in many things despite the current situation. If there is a long lockdown post third wave, which seems unlikely, where businesses are forced to shut down for quite some time, then that may be a challenging factor for their growth ahead. Still, they won’t be going to back the first wave era,” Dutta added.