Vi Business ReadyForNext MSME Growth Insights Study Volume 2.0, 2024
- On World MSME Day Vi Business India's largest MSME study covering 1.6 lakh respondents across 16 industries – MSME Growth Insights Volume 2.0, 2024 published Almost 60% of MSMEs Plan to Digitize their Business Processes by 2025
- Launched advanced digital assessment tool in English and Hindi for MSMEs
Main points of study:
• Sectoral Insight: The top three sectors that have emerged as the most digitally mature are IT-enabled services, financial services and transportation. While these sectors are digitally matured, sectors like retail and construction are also making significant progress. • Budget Allocation: 43 percent of MSMEs plan to increase their overall digitalization budget by 2025. Sectors with a low Digital Maturity Index (DMI) in particular tend to increase their investments, reflecting a growing commitment to digital transformation. • Senior leadership or CEO involvement results in more comprehensive digital transformation: Digitalization success rates were higher when senior leadership and CEOs took the lead. • Despite challenges such as low knowledge and financial constraints, MSMEs are increasingly using technologies such as cloud computing, IoT and advanced workspace tools to increase productivity, collaboration and market access. The study revealed that 40 percent of MSMEs in the IT and IT enabled services, retail and construction sectors have adopted IoT solutions in business. • While MSMEs prioritized digitizing their workspaces during the pandemic, now in 2024 the focus has shifted to digitally connecting with their customers. The study recommends MSMEs to focus on digital security and engage digitally with both customers (customer service) and prospects (customer engagement), indicating an emerging need to focus on digital strategies to meet evolving customer expectations. is • Digitalization has a direct positive relationship with turnover. Also as the size of the company increases, the variation in the level of digital maturity decreases indicating that medium to large companies have embraced digitalization and micro and small companies have adopted digital methods sporadically. • Growing need for data security and data privacy solutions: 43% of MSMEs are currently using device security technologies, data and device protection. In addition Rs. MSMEs with a turnover of less than 10 crores are using public cloud while Rs. Those with high turnover of 10 to 100 crores use private cloud, which shows the need for more data security and data privacy with the increase in turnover of MSMEs. For more study details click on this link: |
Medium, small and micro enterprises (MSMEs) are the backbone of India's economy, currently contributing up to 30 percent of the country's GDP. There are several studies that suggest that MSMEs will increase their GDP contribution to 35-40 percent by 2027. Hence it is important for MSMEs to embrace digital transformation to unleash their growth potential and play a key role in making India a developed India by the year 2047. Recognizing the need for digital adoption, the Government of India has introduced several key initiatives and policies for the MSME sector such as Make in India, Atmanirbhar Bharat, Udyam Portal, Udyami Mitra and others to increase productivity, streamline operations and enhance overall competitiveness.
Vi Business, the enterprise arm of India's leading telecom operator Vi, as a staunch partner in the Government of India's development agenda, has released a country-wide study – 'Vi Business ReadyForNext MSME Growth Insights Study (Volume 2.0 2024)' on World MSME Day. This comprehensive study delves into the digital maturity of MSMEs and how they are leveraging digitization and technology across 16 sectors such as IT and IT enabled services, financial services, transportation, construction, retail, agriculture, media and entertainment, manufacturing and others.
In addition, Vi Business has launched an extensive digital assessment tool in both English and Hindi as an extension of their dedicated MSME programme, #ReadyForNext. The assessment focuses on three key areas: the digital customer, the digital workspace and the digital business. Based on the responses the tool provides a user specific report showing a business's digital maturity score, which is benchmarked against the industry with relevant digital product recommendations. Click on this link to access the tool online: https://www.myvi.in/business/enterprise-segments/smb/msme-readyfornext
Regarding this study Arvind Nevatia, Chief Enterprise Business Officer, Vodafone Ideasaid “At Vi Business we recognize the important role MSMEs play in India's development agenda and the significant contribution they make to the economy. Our comprehensive MSME study sheds light on the progress being driven by small businesses in India as well as the challenges they face in their digital transformation.
Furthermore, the findings of this study, perhaps India's largest MSME-based digital assessment study, provide effective and useful insights into the future path for such organizations. Vi Business is a steadfast partner in driving India's digital economy and helping MSMEs accelerate their growth potential.”
Report Methodology –The Vi Business ReadyForNext MSME Growth Insights Study Volume 2.0 is based on a survey of 1.6 lakh MSMEs across 16 industries in India., Like IT and IT enabled services, Construction, Transportation, Media and entertainment, Mining, Retail, Financial Sectors, Agriculture, Professional Services, Education, Tourism and Hospitality etc. Sector to MSMEs to highlight differences in digital skills, were categorized by operating locations and company size.
Questions were provided for various industries, IT and telecom faced more technical challenges due to their high technological dependency while agriculture and manufacturing faced compliance challenges due to their slow adoption of digital processes and resource constraints. Apart from this, MSMEs will receive Rs. 10 crore to Rs. 250 crores were classified on the basis of turnover.