SMEs facing barriers to technology adoption: Study

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Namrata Kath Hazarika | 08 Aug, 2012
Indian small and medium enterprises (SMEs) face potential barriers to technology adoption, and the government should make an urgent move to make these solutions affordable for the sector, according to a new study.

it is essential to make affordable technology solutions more accessible to end-users through government credits or easy financing options, such as pay-as-you-go or installment plans, says the study conducted by by Intuit, a leading provider of business and financial management solutions for SMEs along with the support from the Ministry of MSME.

It adds that there is a need to focus on campaigns that leverage case studies around the return on investment of newer technologies for small businesses, including cloud solutions; designing training programs that address key skill gaps throughout the supply chain is also requisite.

The study points out that Indian SMEs face challenges in terms of costs, lack of skilled labour and resources to adopt IT, lack of awareness on the benefits of technology, doubt on return on investment, questions on data security and privacy and concerned over reliability of infrastructure, namely broadband and connectivity.

The findings were drawn from in-depth interviews with 748 micro, small businesses across 12 cities in India.

Releasing the study, Intuit India Vice President and Managing Director, Nikhil Arora said, "Faster and massive adoption of cloud solutions and mobile technology will play a crucial role in helping MSMEs win and succeed in India."

“With the support of the Ministry’s leadership, together companies, training organizations and other non-profits that serve small businesses, as well as the small businesses themselves, can bring about changes that will help jump-start the way small businesses grow and thrive in a competitive global marketplace,” he added.

In a similar tone, Additional Secretary and Development Commissioner from the Ministry of MSME, Amanrendra Sinha, said, "The Indian micro and small business sector has the potential to truly drive the future growth and prosperity of India and improve the lives of millions. Achieving these crucial objectives requires improving MSMEs’ ability to access financing and adopt new technologies."

"We hope this discussion leads to an ongoing dialogue about how together government, industry and the non-profit sectors can jointly address challenges and create opportunities for MSME growth,” Sinha said.