 "PayNearby report")
Over 71 per cent of Micro, Small, and Medium Enterprises (MSMEs) in retail are now using some form of digital technology in their daily businesses, highlighted a new report.
The report by PayNearby, which is branchless banking and network, says that the MSME sector is witnessing growth. There has also been a positive change in the mindsets of small business owners in regard to the adoption of technology.
The report which was released on Thursday, to mark National Technology Day showed that more than 80 per cent of MSMEs admitted that the adoption of digital technology has had a positive impact on their businesses and personal lives.
Under the first edition of PayNearby's 'MSME Digital Index 2023', the report showcased the consumption of technology by MSMEs at the last mile. A nationwide survey was conducted for the same to record their tech awareness and tech consumption patterns in their professional and personal lives.
The report also highlights that business owners between the age group of 18-30 years were the most digitally adept and over 75 per cent of the business owners had a smartphone to run their daily operations, and also access digital content. The uptick in the use of smartphones also highlights the crucial role that the internet has to play in helping bridge the infrastructure gap and drive tech inclusion at the last mile by onboarding MSMEs on the digital bandwagon.
On being asked about the positive impact of technology on their businesses, 32 per cent said that it has helped grow their business by improving efficiency in business operations and 28 per cent said that with technology they have seen an increase in their sales and income.
Talking about the challenges while using technology for business operations, 30 per cent of business owners said they could not afford the high cost of technology, whereas 29 per cent grappled with poor internet connectivity.
Commenting on the MSME Digital Index, Jayatri Dasgupta, CMO, PayNearby, said, “India is at the cusp of a tech revolution. However, for this to happen, MSMEs need the necessary tools to get inducted into this fast-moving economy. The MSME Digital Index is our effort to understand the uptake of technology in the MSME segment and highlight areas that need to evolve to bridge the digital divide in our industry."
