How technology brings success closer to small businesses in India

Irrespective of the size of businesses, accelerated digital transformation is a reality today. SMBs are now focussing on technology for reinventing themselves, upgrading their product/service suite and reaching out to a broader customer base in the heartlands of India. Today, the extent of leveraging technological  tools seems to be magnified for small and medium businesses (SMBs). 

The pandemic, undoubtedly, proved to be a game-changer for most SMBs. By accelerating digital adoption, they have reaped the benefits of cost optimisation, agility, enhanced productivity and improved data security. A recent Small and Medium Businesses Trend Report states that 75% of SMB leaders who took concrete steps for digitalisation believe that it will benefit their businesses over the long run. 

SMBs now realise that post-pandemic, technology adoption has increased in smaller Indian cities. This trend is driven by extensive smartphone penetration, affordable data packs, and high-speed internet availability. With the 5G network being rolled out, the number of smartphone users in India may increase to 800 million which clearly indicates that SMBs are on the right path to success. 

From selling their products online to sending e-invoices during the lockdown, SMBs are leveraging technology to build sustainable business models that make them more relevant to customers in the hinterlands. 

Some examples of how SMBs are leveraging technology for growth in Tier II and III cities are as follows: 

Chatbots

Chatbots have been around for a while globally and have seen immense success. Chatbot is an artificial intelligence powered tool and is gaining tremendous popularity in non-metro cities and small towns. By localising the flavour of chatbots and humanising the interaction further, chatbots are now easily handling customer queries. Highly scalable in design, they are equipped to handle multiple requests without the intervention of customer support teams. By providing 24/7 assistance through chatbots, SMBs are improving cost and operational efficiencies. 

Digital Payments

SMBs were pushed towards digital payment due to demonetisation, but the pandemic further led to many small businesses adopting digital payments. Digital payments have since been growing prominently among MSMEs. In 2020, digital payment transactions in India reached 25.5 billion. As the adoption of digital payments continues, volumes and value of digital transactions in India are estimated to go up to the value of ₹238 trillion by 2025. 

Internet of Things (IoT) and Machine Learning (ML) 

SMBs are increasingly using IoT to monitor consignments without substantial monetary investments. For instance, customised IoT-based asset management tools have helped SMBs reduce delayed deliveries and the risk of theft due to inaccurate routes taken by drivers. 

Real-time information with GPS tracking aids efficient deliveries and acts as a cost optimization tool. Fuel consumption can also be tracked through IoT-enabled devices. These plug-and-play solutions work on a pay-per-service model so that employees can use them without any technical training. 

Similarly, SMBs are using machine learning to enhance products and services. They are further integrating it with AI and cloud technologies to bring about automation and agility. 

The future and its promise

Over the past two years, more and more SMBs have explored & implemented readymade technology solutions like no-code websites and have embedded payment gateways for their businesses. By adopting digitalisation, SMBs leaders are establishing their foothold in a digital space and are upskilling  themselves along with their businesses.. . According to Nasscom, there will be 20X demand for digital skills by 2024, which is a trillion-dollar opportunity for Indian SMBs.

Additionally, SMBs are attuning themselves to cybersecurity needs that will remove vulnerabilities and help them protect themselves against cyber frauds, phishing attacks and similar threats. Today, many digital agencies bundle cybersecurity solutions that are a great starting point, but as SMBs learn the ropes they are likely to opt for more robust solutions that will be crucial to their growth strategy. 

With India rooting for SMBs to be the most significant determinant in the future GDP growth, technological advances will play a pivotal role in their success. 

The article has been written by Rahul Raj, Founder & CEO, FloBiz