IT-enabled SMEs create more job opportunities & revenues: Microsoft
Updated: Oct 09, 2013 03:11:04pm
New Delhi, Oct 9 (KNN) IT-enabled SMEs have created more job opportunities and generated more revenues in the past three years, according to a research report.
"IT-enabled SMEs doubled hiring and grew revenues 15 per cent more than their non-IT counterparts," a research report, by Microsoft Corporation and Boston Consulting Group (BCG), said.
The research found that if more SMEs adopted the latest IT tools, the sector could grow by USD 56 billion, and generate a whopping 1.1 million jobs across the country.
"As SMEs are a critical growth engine for jobs and productivity, there is a huge opportunity to spur growth. Our mission is to help them adopt modern IT tools and benefit," Managing Director, Microsoft India, Karan Bajwa said, citing the report - "Ahead of the Curve: Lessons on Technology and Growth from Small Business Leaders".
The research revealed that high-performing SMEs stayed ahead of mainstream IT adoption, riding new waves of advancement to improve productivity, connect with new customers and markets, especially outside their region or country and compete with larger players.
"SMEs play a vital role, acting as primary drivers of job and economic growth. The large informal economy in India means this potential is not reflected in official statistics, but there is a big opportunity for both SMEs and policymakers to increase output and employment substantially," BCG partner and report's co-author Neeraj Aggarwal said.
High-performing SMEs employ a range of tools from productivity software to internet connectivity and cloud-based services.
On the flip side, the research also revealed that adoption of IT by SMEs is uneven the world over as many of them and their customers don't have access to modern broadband networks and lack skills to get the most out of IT.
"Many SMEs still use old and less efficient hardware and software. About 90 per cent of them in India do not have access to internet compared to 22 per cent of their counterparts in China and five per cent in the US. New devices are expensive due to high import duties. They are also concerned about online security and privacy," the report highlighted.
As the risk of a growing technology gap should worry governments looking to maximise economic growth, policymakers and the IT industry should implement strategies to remove barriers to IT adoption by addressing small businesses' concerns.
The research, which surveyed Brazil, India, China, Germany and the US, found that SME revenue could grow by a combined USD 770 billion in these five countries if more SMEs could achieve growth rates of those SMEs that use modern IT.
"These SMEs could add around 6.2 million new jobs in the five countries surveyed. The association between IT adoption and growth will be consistent in countries across the world," the report affirmed. (KNN/SD)
"IT-enabled SMEs doubled hiring and grew revenues 15 per cent more than their non-IT counterparts," a research report, by Microsoft Corporation and Boston Consulting Group (BCG), said.
The research found that if more SMEs adopted the latest IT tools, the sector could grow by USD 56 billion, and generate a whopping 1.1 million jobs across the country.
"As SMEs are a critical growth engine for jobs and productivity, there is a huge opportunity to spur growth. Our mission is to help them adopt modern IT tools and benefit," Managing Director, Microsoft India, Karan Bajwa said, citing the report - "Ahead of the Curve: Lessons on Technology and Growth from Small Business Leaders".
The research revealed that high-performing SMEs stayed ahead of mainstream IT adoption, riding new waves of advancement to improve productivity, connect with new customers and markets, especially outside their region or country and compete with larger players.
"SMEs play a vital role, acting as primary drivers of job and economic growth. The large informal economy in India means this potential is not reflected in official statistics, but there is a big opportunity for both SMEs and policymakers to increase output and employment substantially," BCG partner and report's co-author Neeraj Aggarwal said.
High-performing SMEs employ a range of tools from productivity software to internet connectivity and cloud-based services.
On the flip side, the research also revealed that adoption of IT by SMEs is uneven the world over as many of them and their customers don't have access to modern broadband networks and lack skills to get the most out of IT.
"Many SMEs still use old and less efficient hardware and software. About 90 per cent of them in India do not have access to internet compared to 22 per cent of their counterparts in China and five per cent in the US. New devices are expensive due to high import duties. They are also concerned about online security and privacy," the report highlighted.
As the risk of a growing technology gap should worry governments looking to maximise economic growth, policymakers and the IT industry should implement strategies to remove barriers to IT adoption by addressing small businesses' concerns.
The research, which surveyed Brazil, India, China, Germany and the US, found that SME revenue could grow by a combined USD 770 billion in these five countries if more SMEs could achieve growth rates of those SMEs that use modern IT.
"These SMEs could add around 6.2 million new jobs in the five countries surveyed. The association between IT adoption and growth will be consistent in countries across the world," the report affirmed. (KNN/SD)
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