Technology and Survival of MSME
The Covid-19 pandemic has not only provoked a global healthcare emergency but has also disrupted the world economy and displayed a major threat to the survival of small businesses. Several factors have adversely affected MSMEs such as low demand due to job losses and pay cuts, disrupted supply chain, lack of funding and labour, and a general sense of uncertainties.
Small businesses are also wrestling under the burden of loan payments, high taxations, and interest payments. Various companies are facing serious challenges to business continuity whereas because of the economic slowdown other companies have already collapsed.
In this unprecedented crisis, industry leaders, key stakeholders, and governments are playing a critical role in helping the MSMEs crisis and survival of small businesses. The government is also making things easier by lending channels like banks to provide credit support to small businesses.
Besides all the government reforms, technology services can help MSMEs field by providing them with the resources and opportunities to adapt to the new normal. Let’s take a look at the numerous ways that technology is a must for MSMEs survival and Small businesses.
How does Performance of Technology help MSMEs Survival and Small Business?
MSMEs and Small businesses are truly one of the worst-hit sectors by this pandemic. Small businesses are struggling to operate due to the continuous social distancing measure and pan-India lockdown. Following are the steps on Small Changes Every MSME Should Adapt and how technology plays a major role in MSMEs survival and small business:
- Companies must accept the digital transformation and shift their business to online. In all critical areas of functions such as inventory management, sales & marketing, accounting, customer service, and more technology must be integrated to optimize business performance and drive business sustained growth.
- Digital transformation requires some investments. Where all small businesses are facing challenges with liquidity crunch, lending institutions like banks and policymakers whereas adapting technology by other stakeholders can make a huge difference that can help businesses receive capital without waiting.
- By digitizing the entire process with the help of technology financial institutions can reduce the loan application. Therefore, innovative technology can help automate risk for small businesses which will speed up the lending processes.
- To protect the interest of lenders and by providing easy access to credit for needy businesses, lenders can deploy advanced technologies like ML-based cash flow analysis to assess the creditworthiness of MSMEs better as the loan application and disbursal process will be made more efficient by drastically reducing the paperwork.
Furthermore, it is supportive to see the efforts undertaken by the government, industry leaders, and other stakeholders to support MSMEs by giving them a chance by creating a technology-empowered ecosystem. Therefore, the time is ripe for leading channels to either invest in the digital transformation of small businesses or partner with the correct platform to help MSMEs stay competitive.
The MSME industry forms the backbone of our world economy by giving rise to employment for over 100 million people and contributing to India’s GDP of about 29% which is assured to reach 50% by 2025 and digital transformation along with policy reforms enables MSMEs to recover from the economic crises and help them succeed by becoming more resilient and efficient. Thus technology offers a huge opportunity to drive MSME survival and growth in small businesses and now it is the best time to use technology to the fullest to make our economy truly self-assured.
Considerations on implementing any technology to business before decision making
Implementing any technology in business is a strategic decision for business as it involves numerous considerations from associating the technology to the business, investing in technology, data, and security, etc.
Following are some key considerations on implementing any technology to business before decision making:
- Picking the right business management solution: A business management software must ensure to automate all business processes and increase overall efficiency and effectiveness by adopting the right technology for survival.
- Fundamentals for seamless adoption: It is important to understand that technology is a grip to ease the business. Every business has a unique way of working. Hence, technology must be versatile to adjust to the functioning of the business.
- Data security and privacy: It is an important consideration for business at any scale. It is of utmost essential that the data is secure and is available only to the business owner. With more and more businesses choosing to modify technology, business operations must be aware of the pros and cons before they choose to invest in the model to make the best information for them.
Technology can be accepted as a huge opportunity to drive stability and growth for MSMEs survival and small business and there has not been a better time to leverage it to the fullest as adapting technology will assist your business to its true potential.