Tech major Intel, in association with the MSME ministry, has launched a nationwide initiative to enhance technology adoption among small and medium enterprises, according to India SME Forum.
A survey conducted by the Forum across 19 states also showed that over 34 per cent of the overall 1,29,537 MSME respondents are employing digital means for communicating with employees, customers and suppliers whereas only 7 per cent have fully embraced digital technology or SAAS Solutions.
Over half of the MSMEs highlighted several benefits including higher profitability, operational efficiency and improved customer engagement, however 70 per cent cited lack of knowledge as key barrier for wider adoption of technology.
Major causes of low technology adoption cited in the survey are lack of understanding and guidance of business benefits, resistance to incurring upfront investment-related costs to implement technology, and lack of skilled/trained manpower to manage technology setups.
Joint Secretary in the Ministry of MSME Alka Arora highlighted the need of technology for the development of about six crore MSMEs in India.
"Many of them are in the micro sectors, some of them in the small, medium enterprise but today for any business to take it to the next level, technology is of prime importance," she said.
"Tech platforms such as SAAS (Software as a Service) and business analytics offerings can help MSMEs connect with potential clients to grow their businesses further," she said.