Technology adoption challenge for SMEs in India
SMEs: their important role in the Indian economy and the challenges they face.
Small and Medium Enterprises (SMEs) globally, across the globe, have become the backbone of struggling and developing economies. They are constantly looking for a solution to the recession and unemployment. Governments are fostering entrepreneurship on a large scale to deliver multiple benefits, including creating job opportunities, increasing productivity, increasing industrial production and exports, developing entrepreneurship, developing the economy rural development, healthy competitiveness, the gradual eradication of poverty and the achievement of various social objectives. One of the universal concerns is to facilitate the creation of this type of company.
Despite playing a key role in the economic development of India, Indian SMEs have to face significant challenges such as inadequate credit facilities, lack of availability of suitable technology and skilled manpower. Meanwhile, facing competition from both national and international sectors of their respective industry or from organizations associated with them.
Indian tech sector including big Indian corporation also small and medium sized organizations have helped companies all over the world. An evaluative look at the adoption of technology by SMEs would show that the manufacturing and service sectors are comparatively slow in adopting technology. They still rely heavily on traditional non-technical systems for sales, marketing, and finance purposes and to maintain customer engagement.
India’s ambitious growth targets and economic goals can be achieved by providing proper support, training and for SMEs. Technology adoption may be the single most important factor in this growth strategy.
Some of the main challenges faced by SMEs are discussed below:
limited cash flow
For the most part, the SME sector is made up of people who get their own experience and labor with limited capital.
The workforce is mainly made up of family and friends, also for general support and the source of capital. Owners, financial institutions could only incorporate limited capital investments. There is a lot of pressure on revenue and profit margins for SMEs. All this also creates extreme competition between them.
The Indian business landscape is changing rapidly. Not only for large companies but also for SMEs. One of the biggest drivers is technology and communication for this fast-developing and lasting change. If the technology adoption by SMEs in India is assessed, it is clearly unavoidable that they have multiple barriers in their way. The most important obstacles to the adoption of technology in SMEs are the following
• Lack of knowledge of the beneficiaries
• Lack of familiarity with technology
• Lack of proper guidance
• Lack of credible support from government institutions
• Very poor technology adoption.
Technology is extremely important in all sectors such as selling an online marketplace, inventory management, after-sales support, financial reporting, etc.
SMBs are somehow not giving technology adoption the attention it deserves. SMEs are not convinced enough about the return on investment in technology and cost is the biggest obstacle.
IT policies
Governments set various rules and regulations that guide business. Organizations typically change the way they work when the government changes policies. Economic policy and market regulations by the government have an influence on the profitability of the business. Owners must compile regulations set forth by federal, state, and local governments. Since technologies change rapidly, it is important for organizations to innovate.
IT consultants can easily handle technological challenges for SMEs. They consult and integrate new technologies, particularly in mobile devices, for application development and in cloud computing.
Dependence on physical IT resources
Enabling employees to work productively and ensuring the security of IT network and data is a major challenge for SMBs. Systems must be actively working to help employees work effectively. Cloud computing and managed IT services have helped businesses tremendously. Some organizations also outsource IT services.
Not keeping up with changing technology
Rapidly advancing technology demands that these organizations keep up with it. Buying the latest smartphones, tablets, routers, and other similar utility gadgets for an entire team can be expensive. It is very expensive to subscribe to software as a service applications that are very important for many functionalities like accounting, customer relationship management, billing, etc. Due to budget constraints, SMBs are unable to upgrade technology frequently, thus making technology budgeting one of the biggest technology challenges for SMBs.
Updating technology is very important as it helps companies to be competitive and allows employees to work better and more efficiently. Setting an accurate annual budget is critical to keeping technology current.
Inappropriate backup systems
Power outage, server crash, files being accidentally deleted or any such data disaster can demolish important data on the system. SMBs don’t have large budgets to spend on backup, storage, and data protection. They don’t have a backup and disaster recovery plan. The right backup solution and disaster recovery steps can help manage and overcome these events, thus eliminating the expenses that come with them. There are several data solutions available.
Unclear device policies
The security of information technology systems is one of those duties for which each employee is responsible. Policies must be accurately implemented and communicated to employees.
In order for SMEs to be aware of all the resources available for technology adoption, it is important that the Indian government, private sectors and training institutions and other stakeholders work together to develop an effective communication program for SMEs.
Today’s government is very concerned about the growth of SMEs like never before. Subsidies and other cost benefits are being offered to SMEs. With increased awareness of these benefits, including cost reduction, our Indian economy will see more advanced technology adoption. These organizations must be made to realize that technology is not just an option but a necessity.