Bikky Khosla | 27 Jun, 2025
At the onset, on the occasion of International MSMEs Day, I would like to take the opportunity to salute the unwavering spirit, adaptability, and determination of our small businesses that continue to drive innovation and growth. Here is to your strength and perseverance.
However as the world celebrates this momentous day today, I think Indian small businesses are still halfway through their digital journey compared to their counterparts in other countries. While it is heartening to see that more MSMEs are adopting digital channels, exploring online platforms and using technologies like artificial intelligence and automation, the journey is still far from complete.
In my experience, what I have found is that there is knowledge gap among MSMEs regarding adopting technology, some are just building websites, joining social media or subscribing to B2B portals for the sake of it, they are not aware how they can leverage these mediums to increase production, work efficiency, reduce cost and reach out to the right targeted audience.
In my opinion, the biggest hurdle is not the lack of access to technology, It is the lack of guidance. Many small business owners do not know where to begin, how to automate or use digital tools. They are also apprehensive of whether digitisation will have any positive effect on their business or not. Most of the Indian MSMES are being managed and run within the families who are resistant to change and have a sense of fear. Some of the business owners I have spoken to are worried about data privacy, security, and adaptability. These are not irrational concerns. They’re legitimate. But they’re also slowing down the progress.
Another major challenge that continues to weigh heavily on Indian MSMEs is access to finance. Though the government has come up with different schemes and directed banks to offer quicker loans to the MSMEs, many still struggle to get timely and adequate funding. The rise of fintechs as an alternative to traditional banking has brought some respite by simplifying the process, but I feel there is still a long way to go. Without financial ability, it is indeed difficult for small businesses to invest or scale their operations further.
In my view, a digital push alone will not help, we need a support system for MSMEs that helps them demystify the process - a system that guides, educates and understands the challenges they face. Along with that peer communities, digital advisory forums, and localised training could make a world of difference.
I believe India’s MSMEs are capable of becoming digital powerhouses. The ambition is there. The intent is clear. But unless we invest in awareness, trust, and handholding, many will remain stuck in a halfway zone—digitally present but not digitally empowered.
The digital India story cannot be complete until its smallest businesses are confidently and meaningfully a part of it. I am hopeful things will improve and they are improving gradually and with the right intent, collaboration and government support, we will overcome these challenges in the days to come.
