Why MSMEs are lagging in tech adoption

Friday, 17 August 2012


BANGALORE, INDIA: As the technology adoption is seen as no less than a panacea in macro economic conditions, India’s micro, small and medium enterprise sector is plagued with low deployment. This startling fact has been revealed by the government-supported MSME study conducted by Intuit.

The research carried across 12 large cities in the country identifies opportunities for government, industry and non-profit organizations that could facilitate technology adoption. The assessment is based on views from nearly 750 MSMEs.

The findings identified the barriers in technology adoption amongst MSMEs in India. The painpoints, study said, were cost factors, lack of skilled labor and resources, infrastructure reliability concerns and lack of awareness on technology-driven benefits.

Intuit India VP and managing director Nikhil Arora said that MSME sector is only second to the agriculture industry in size and makes up 9 per cent of the nation’s GDP. “Faster and massive adoption of cloud solution and mobile technologies will play a crucial role in helping MSMEs succeed in India,” Arora added.

The findings supported by the MSME ministry, National Institute of Entrepreneurship and Small Business Development and National Small Industries Corporation recommend making of affordable technology solutions.

Development commissioner of the ministry of MSME Amarendra Sinha said that India’s MSME sector has the potential to truly drive the future growth and prosperity that can help improve lives of millions. “There is a need to improve MSMEs’ ability to access finance and adopt new technologies,” added Sinha.  

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