SMEs are the pillars not only of the Indian economy but of the whole world.
According to an estimate by World bank, SMEs represent 90 percent of global companies and more than 50 percent of the workforce. The numbers grow from year to year.
Likewise, startups are not far behind. According to Business survey 2020-21, the Indian government currently recognizes 41,061 startups, of which 39,000 startups have reported 470,000 jobs. These figures clearly show how important SMEs and startups are for our economy and how their use can ultimately lead to enormous growth.
But the way is not that easy. Technology must play an important role in order to effectively harness the potential of SMEs and start-ups. The use of modern technologies such as cloud, automation and digitization will not only increase productivity, but also secure economic growth and at the same time optimize the available resources.
How the introduction of technologies can help SMEs and start-ups:
Make informed decisions
Modern technologies like big data and machine learning can help companies gain insights into business trends and forecasts that can help optimize their spend in the right areas.
In the manufacturing sector, for example, cloud-based applications can help manufacturers seamlessly monitor their production quantities. You can also predict machine failures and understand the various amounts of raw materials required to control production volumes.
Reduced operating costs
Technology is not an expense, it is an investment. Investing in technology can help brands significantly reduce their various operating and marketing costs. If we just look at digital marketing, it offers greater reach than traditional marketing channels at a fraction of the cost.
AI and robotic process automation can help automate everyday workflows and adapt the human workforce. Removing traditional physical servers and data centers and adopting cloud technology can significantly reduce costs.
There are many different estimates of the percentage savings a company can save by migrating to the cloud. The numbers may vary, but it is certain that they are significant and will make a big difference at the end of the fiscal year. This is extremely important for startups and SMEs as their investments are limited compared to companies.
Compete with global powers
We are in the midst of a technological industrial revolution where companies around the world are using technology to stay at the forefront. Companies in the United States, Europe, and China are leveraging modern advances in technology in almost every sector, be it accounting, marketing and sales, inventory management, customer service, and more, to maximize efficiency, optimize performance, and drive business growth.
Indian companies also have to follow suit, otherwise we will not be able to survive in the international market.
Reach more customers
the The success of various online startups and SMEs in India shows how businesses can create more opportunity by connecting with markets at both the micro and macro levels, providing the opportunity to reach a large and niche audience through technology. This used to be extremely expensive and out of the reach of small businesses.
The technology has also enabled companies to enable new connections and combine online and offline interactions. Thanks to the advent of various online payment platforms, online marketplaces have also sprung up that have helped other companies reach unfamiliar markets and audiences.
When used efficiently, technology is the best choice for startups and SMEs to grow exponentially and optimize their available resources. Make sure the workforce is highly skilled to handle the progress, otherwise startups and SMBs will find themselves in the same situation as large IT companies are today – a large workforce without the right skills.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)