Technology for MSMEs: At a global level, 55 per cent of the surveyed businesses were selling through digital channels for 1 to 5 years. However, In India, a higher share — 63 per cent of small businesses were selling online for 1-5 years
Technology for MSMEs: The need to digitise growth is seemingly encouraging small businesses globally and in India to enhance their adoption of digital tools. According to a report by domain registrar GoDaddy, 62 per cent of Indian small businesses use a website, online store or e-commerce platform as their main sales channel to grow their business. This was above the global average of 61 per cent, according to the report Small Business Data Observatory 2023 based on a global survey of small businesses in March this year.
The report, which surveyed a sample of over 4,800 small business owners in Brazil, Colombia, Germany, India, Mexico, the Philippines, Singapore, Spain, Thailand, and the United States, also found that 65 per cent of Indian small businesses made up to half of their revenue from online sales. Other 36 per cent of respondents made over 50 per cent of their revenue from online sales.
While the ability to sell products or services online opened a world of opportunities and challenges for small businesses, how long have these companies been using digital channels to market their products or services?
According to the report, at a global level, 55 per cent of the surveyed businesses were selling through digital channels for 1 to 5 years. However, In India, a higher share — 63 per cent of small businesses were selling online for 1-5 years while only 20 per cent were selling online for less than a year and 4 per cent were selling online for over 10 years.
With respect to the use of social media platforms, which have been a valuable part of a sales strategy for small businesses, 58 per cent of entrepreneurs globally have been selling through this channel. Here, small businesses in Latin American countries such as Mexico (68 per cent) and Colombia (61 per cent), and Brazil (59 per cent) had the highest acceptance of social media platforms in comparison to 55 per cent in India.
While technology adoption is helping small businesses across the world gain a competitive advantage, there are challenges confronting their growth, according to the report. The foremost one is increasing the number of customers as “In a competitive and ever-evolving market, acquiring new customers becomes essential to expand revenue base and ensure business sustainability.”
The second big challenge is around customer loyalty for long-term success and stability as it entails not only repeat purchases but also an emotional connection with the brand, positive recommendations, and greater engagement in programs and promotions, the report noted.
The other key challenges cited by small businesses globally were optimizing costs, enhancing business visibility, and improving internal processes.
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