In India, Micro, Small and Medium Enterprises (MSME) is considered as the growth engine as it contributes about 40 per cent to the country’s GDP and the industry that is now harbouring close to 56 million MSME entrepreneurs. This paints a positive landscape exhibiting the capabilities of Indian entrepreneurs to innovate and create products that address the specific needs of the country.
As a result of the pandemic and mandatory social distancing policies, India is witnessing a rising wave of digital transformation. Many large corporations have taken to this new development and are utilizing new technologies to leverage their huge customer bases and data warehouses to bring efficiencies and insights. Also, the entrepreneurial bug has found its way past the handful of venture capitalists that have been cropping up in the last few years. Thus, the entire ecosystem has evolved at an overwhelming pace.
For an MSME now, the digital revolution is no more a distant dream which only large companies could think of. So, as the infiltration of new-age technology into the MSME sector happened, a recurring area of focus has been technological evolution and how start-ups and small businesses are using it.
There are a plethora of SaaS products (Software-as-a-service) that range from infrastructure, ERP, payment, and accounting to partner evaluation, online marketplaces, and so on. They cater to different aspects of managing a business and are available at economical prices without any upfront costs. Artificial Intelligence (AI) has levelled the playing field, allowing small businesses to scale themselves up and go head-to-head with larger corporations. In turn, the unique edge that small businesses have always had, in terms of close customer engagement, niche products and services and robust company identity, become even more valued in the eyes of the customers.
Aided and supported by several government schemes and initiatives such as UPI and other emerging platforms, MSMEs have been able to go digital.
How small businesses can win with new tech trends
Product Innovation
Despite having a great product, it is important for the businesses to persistently innovate, upgrade and keep making small alterations that will improve the product. This has become inevitable with the constantly growing competition.
Automation of Back-office Tasks
Quite often the biggest roadblock that small businesses tend to face when trying to maintain work-life balance are the administrative tasks involved in keeping their business afloat. Technologies such as artificial intelligence can take care of those time-consuming, repetitive and mundane administrative tasks so that businesses can focus on more crucial, strategic work.
Gain Customer Insights
Rapid technological advancements have helped companies determine customer behaviour. To stay undefeated in this cut-throat competition, MSMEs can utilise the data (which they derive from technology) to identify patterns and make informed decisions about how to evolve a product or service over a period of time to meet customer requirements.
Make Sound Decisions & Increase Efficiency
Entrepreneurs need to make many critical decisions. Technology can help sort methodically through heaps of data that the business generates to bring out deeper insights. This can also help expedite important business decisions, such as whether to adopt a new tool or enter a new market. Technology can also help businesses become more efficient in their day-to-day tasks.
Deliver Tailored Customer Experiences
Machine learning technology uses algorithms to excavate hidden insights from data without being explicitly programmed to do so. Learning from past customer experiences, it’s capable of creating more relevant and personalized experiences in the future for customers.
Digital Accounting To Ease Accounting Operations
The rise in demand for accounting software is simple – MSMEs need faster, accurate and remote bookkeeping at this time, more than ever before. Small businesses can utilize the software to get ready solicitations, track costs, check credits, ensure timely GST filing, immaculate bookkeeping, and produce an assortment of reports and the sky's the limit from thereon. Accounting software not only helps to ease the process of accounting operations but also helps them to do GAP analysis that protects the profits of their businesses and manage losses at the same time.
Summing it up
A rising number of MSMEs are warming up to the concept of adopting the latest technological trends as more of their practical benefits are being realized. Technology has immense power to enrich the small business experience for customers and empower them to play shoulder-to-shoulder with big corporations.
The author is Co-Founder, and Director, BUSY Accounting Software