How MSMEs Growing in the IT domain - Industry Insights

Micro, Small, and Medium Enterprises (MSMEs) are driving the Indian economy. The government also focuses on and assists the emerging MSMEs to help them grow. MSMEs in the IT sector play a crucial role in driving growth and innovation in India's technology landscape.

These enterprises are pivotal in fueling digital transformation across various sectors, thanks to the government's support through schemes like the RAMP and TUF. These programs provide financial and technical assistance that enables enterprises to adopt cutting-edge technologies and improve their operational efficiencies. Technologies such as cloud computing, the Internet of Things (IoT), AI, and data analytics are driving substantial growth across the MSME sector, ultimately boosting the Indian economy. 

Recently DQ Channels interacted with a few industry players and gathered their views on how MSMEs are playing a driving force in the IT domain and how they are playing their roles in enabling them.

 Lalit Arora, Co-Founder, of UBON, shared insights - 

We are thrilled to observe the transformative impact of digitization on MSMEs in the IT domain. The recent Google and KPMG study highlights that small businesses leveraging digital solutions experience twice the revenue growth compared to their offline counterparts. Specifically, MSMEs integrating with e-commerce platforms have seen a remarkable 65% increase in turnover, with 54% reporting significant profit gains.

This explosive growth in digital infrastructure, driven by UPI-led digital payments and innovative FinTech solutions, has accelerated the digitization of the MSME sector. In FY 22, digitized SMEs attracted 40% of the share of invested capital, with e-commerce alone accounting for approximately 65% of this investment. Projections suggest this figure will rise to around 75% over the next five years.

By embracing these digital advancements, MSMEs have fundamentally improved their day-to-day operations, financial management, and cash flow monitoring. We are proud to support and collaborate with these dynamic small businesses as they continue to evolve and set new benchmarks for growth and efficiency in the digital age.

Kapil Rana Founder of Hostbooks talked about MSME's growth and how they enable them - 

MSMEs in the IT domain are experiencing unprecedented growth, driven by the increasing accessibility of digital tools and technologies—affordable cloud solutions level the playing field, enabling these businesses to compete globally and innovate rapidly. Our platform empowers MSMEs to reduce operational overheads and stay competitive by providing real-time financial insights and streamlining compliance. This flexibility and scalability allow them to navigate the fast-changing business landscape effectively. As we support these enterprises, we envision a future where MSMEs lead economic growth, leveraging technology to develop sustainable and impactful solutions. HostBooks is proud to be a part of this transformative journey, helping MSMEs unlock their potential and drive forward the IT sector.

Mandeep Arora, Co-Founder, VingaJoy shared his views -

We have witnessed firsthand the remarkable growth and transformation within the MSME sector, particularly in the IT domain. The pandemic catalyzed a shift towards digital solutions, enabling these enterprises to thrive in an increasingly digital marketplace. By leveraging e-commerce platforms and digital payment systems, MSMEs have not only enhanced their operational efficiency but also achieved substantial revenue and profit growth. This accelerated digitization, bolstered by innovative FinTech solutions, is a testament to the resilience and adaptability of small businesses. We are proud to support and be a part of this dynamic evolution, as these advancements lay a solid foundation for sustained growth and competitiveness in the years to come.

Dhwani Mehta, Founder and Director, OpportuneHR talked about the MSME's contribution -

MSMEs in the IT domain drive growth and innovation in India's tech landscape. These enterprises are pivotal in fueling digital transformation across various sectors. The government's support through schemes like the RAMP and TUF provides financial and technical assistance that enables enterprises to adopt cutting-edge technologies and improve their operational efficiencies. Cutting-edge technologies like cloud computing, the Internet of Things (IoT), AI, and data analytics, can drive substantial growth across the entire MSME sector, ultimately boosting the Indian economy.

The transformative impact of digitization on MSMEs in the IT domain is evident in the remarkable growth and efficiency gains these enterprises have achieved. By leveraging e-commerce platforms and digital payment systems, MSMEs have enhanced their operational efficiency and achieved significant revenue and profit growth. The support from government schemes and the adoption of innovative technologies have bolstered the resilience and adaptability of small businesses. As MSMEs continue to evolve and embrace digital advancements, they are setting new benchmarks for growth and competitiveness, laying a solid foundation for sustained progress in the years to come.

Conclusion -

The transformative impact of digitization on MSMEs in the IT domain is evident in the remarkable growth and efficiency gains these enterprises have achieved. By leveraging e-commerce platforms and digital payment systems, MSMEs have enhanced their operational efficiency and achieved significant revenue and profit growth.

The support from government schemes and the adoption of innovative technologies have bolstered the resilience and adaptability of small businesses. As MSMEs continue to evolve and embrace digital advancements, they are setting new benchmarks for growth and competitiveness, laying a solid foundation for sustained progress in the years to come.

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