How Small-Scale Businesses Can Leverage Technology To Grow Their Business

The Digital Revolution Driven by Mobile in India

India’s digital ecosystem has undergone a transformation in recent years. The rise of smartphones has been the major catalyst for this growth. In 2023, the smartphone penetration in India was 71 per cent, and this number is expected to reach 96 per cent by 2040.  It is amply clear that we cannot overlook the mobile revolution in India. For small businesses, the growth of smartphones reflects a massive opportunity which can be harnessed within just a few taps. These numbers point to the fact that SMEs must think ‘mobile-first’ when it comes to reaching out and engaging their audience.

Beyond Presence: The Imperative of Being Online

A digital presence is not just a ‘nice to have’ for a business in today’s digital world, it is a crucial competitive advantage. For SMEs it means overcoming the limitations of having a national or local market set, and competing on a global stage. A thoughtfully executed online strategy that starts with a professional, user-friendly website allows a small business to provide sufficient information about their unique value propositions to differentiate themselves to international customers. The pandemic brought this fact home: Businesses that had a strong digital foundation were able to pivot quickly, and react to changing market dynamics.

But having a website is only the start. The real value of being online is about agility: how quickly and effectively a business can respond to its customers’ needs, innovate its offerings, and stay ahead of competition. Being online needs to reflect openness, responsiveness and continuous improvement.

Building the Right Tech Stack for Success

Having a good tech stack is a fundamental requirement for SMEs to fully realise the potential of the digital world. A tech stack is the suite of technologies that an organisation uses in its operations. A good digital tech stack for a small business includes:

• User-Centric Website: The website should be a user-friendly, attractive and mobile-friendly platform with high conversion rates and customer retention.

• Dependable Payment Gateway: Providing a dependable payment gateway which supports the proper functioning of transactions and helps build customers’ confidence.

• Digital Marketing Ecosystem: SMEs should use tools such as Google Analytics, social media or email marketing to know more about the customer behavior, and in turn, the marketing plans can be improved.

• Customer Relationship Management (CRM): CRM tools can be used to automate and customize the customer experience, and improve customer satisfaction at the same time.

• Inventory Management Solution: Software which provides the right stock levels, monitors orders, and predicts demand so you don’t overstock or understock.

A Real-World Example: ReCharkha's Journey

ReCharkha, a social enterprise in Pune, is an example of how technology can be used to scale up and deliver on a small business’s social goals. The brainchild of an environmentalist who focuses on upcycling, the enterprise makes upcycled fashion products from waste materials. ReCharkha often struggled to expand its reach and manage online sales.

With the help of PhonePe’s Payment Gateway, ReCharkha has been able to streamline payments, giving customers a completely automated checkout process, which has further contributed to both sales and customer satisfaction. The story of how ReCharkha leveraged PhonePe’s services to solve some of its key challenges is a testament to the fact that small businesses need the right partners who can offer them technology solutions that can address the unique problems of small businesses.

A Vision for the Future: Technology as a Catalyst for SME Growth

The future for SMEs will lie in their ability to harness digital transformation and unlock new ways to grow. Making deliberate choices about how and when to use technology will enable small businesses not just to scale up, but also to operate differently and to better serve their customers.

SMEs are the backbone of the Indian economy, and at PhonePe we make it our mission to provide them with technological tools and platforms that help them go digital and grow. We celebrate National Small Business Day by reiterating our commitment to technology and its potential to make a better, richer tomorrow for SMEs across India.

As more SMEs transform and become part of the digital mainstream, they will not only enhance their own future but also add to the overall economic and social growth of India. The way forward is now clear: digitalisation is an enabler. The possibilities for growth and impact are endless.