94 per cent MSMEs relied on IT infrastructure during the lockdown to stay afloat: Reports
New Delhi, Sept 19 (KNN) The COVID-19 pandemic has driven digital transformation of Micro, Small and Medium Enterprises (MSMEs) in India, as these businesses are now adopting technology for business continuity and growth.
The same can be confirmed from a study by Tally Solutions which encapsulates how MSMEs embraced technology and handled business operations to come out resilient and ensure business stability.
As per the study, 94 per cent business owners state that adopting technology (IT Infrastructure) helped their business operations during lockdown while 67 per cent respondents from West adopted a full-fledged IT infrastructure in their business post lockdown as compared to just 29 per cent during lockdown.
Similarly, 60 per cent respondents from South adopted a complete IT infrastructure post lockdown as compared to only 24 per cent during lockdown.
The study also highlights that 82 per cent of small businesses are optimistic about the outlook of business continuity with current cash flow getting better, allowing 66 per cent of them to pay salaries on time after Unlock 3.0.
''During lockdown 38 per cent of businesses were not operating at all, while 35 per cent of businesses were operating daily with limited hours and only 23 per cent of businesses operated with regular hours,'' claimed the study.
While post lockdown 48 per cent of businesses operated daily with limited hours and 38 per cent operated with regular hours. Only 5 per cent businesses are unable to operate, the report said.
“Despite being one of the most adversely impacted sectors, the MSMEs have shown immense resilience and dynamism to overcome this situation through innovation and adaptability. Not only have these businesses ensured sustenance but also shown great moral character by supporting their employees during this time. Their unwavering spirit is an example for us all to follow in the times of adversity,” said Joyce Ray, Head- India Business, Tally Solutions said.
Digital adoption is essential for businesses to leverage opportunities and accelerate business. While MSMEs continue to work towards reaching normalcy, to bounce back stronger they must adopt the right technology tools and business management solutions. This will lead to streamlined operations, enabling remote work capabilities, optimizing expenses, and better cash and inventory management – all resulting in business sustenance and growth.