Technology for MSMEs: Over 65 per cent of round 540 micro and small enterprises (MSEs) surveyed by Crisil not too long ago mentioned they’d adopted or upgraded their use of digital channels for development amid pandemic-led disruption final yr. The rankings company on Wednesday mentioned the survey was carried out to gauge utilization of digital channels together with on-line aggregators, social media platforms, and firm web sites by MSEs in the course of the pandemic. Of the whole respondents, 59 per cent had been micro enterprises with income lower than Rs 5 crore and others had been small companies with income as much as Rs 25 crore.
The digital utilization benefitted respondents within the immediate-to-short run by serving to handle transactions at a distance, ship items effectively, and facilitate entry to monetary providers, aside from bringing in tangible advantages equivalent to enhanced buyer acquisition, operational effectivity, workforce enhancement, threat administration, innovation and discount in manpower requirement, the survey famous.
Among sectors, manufacturing reported greater adoption with 71 per cent respondents adopting or upgrading their use of digital platforms compared to 66 per cent respondents within the providers sector. In phrases of promoting or promoting services and products, round 52 per cent respondents mentioned they use social media platforms.
“The growing demand for digitalization in operation was visible across segments. The highest transformation was recorded on financial transactions with around 68 per cent extensively adopting payment wallets and net banking, while a mere around 4 per cent were focused on procurement or inventory management,” mentioned Bhushan Parekh, Director, SME Solutions, Crisil.
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However, round 80 per cent respondents had been nonetheless hesitant to share their monetary information on-line as a result of worry of knowledge theft.
“The digital acceptance has increased further after the second wave. The survey highlight was the big change in the digitsation of financial transactions and marketing. However, MSEs were still not comfortable sharing their proprietary data online. In our experience, whatever digital footprint has been created is usually in cases where data sharing is not consent-based and that is helping MSEs with benefit maximum otherwise if their consent is needed, there are challenges in getting the data,” Manasi Kulkarni, Associate Director, Crisil advised Financial Express Online.
Meanwhile, the MSME sector is more likely to see a 15-17 per cent development in revenues in FY22 on the again of demand restoration with financial exercise reviving, a examine by Assocham-Crisil had mentioned not too long ago. The FY22 restoration adopted a destructive development of round 10 per cent in FY21 and 6 per cent in FY20. For FY23, the examine estimated 11-13 per cent development for the sector. In phrases of credit score availability, round 7-9 per cent development was anticipated in FY22 to Rs 18 lakh crore from Rs 17 lakh crore in FY21 and Rs 16 lakh crore throughout pre-Covid FY20, in accordance with the examine titled MSMEs Back to the Grind.
Source: www.financialexpress.com”