Technology has changed the way of doing business. Now a days era of automation and artificial intelligence. As a result manual work is minimized to a great extent. Be it MSME, start up, or Large Unit importance of technology cannot be undermined.
However, many Small & Medium Enterprises (SMEs) stay away from investing in technology due to the concern of high investments and complexity. This puts them at the risk of being left behind.
MSMEs try to reduce cost by minimizing capital expenditure. This has made the Indian MSME sector a bit dormant when it comes to the use of the latest technology and knowledge of the global market.
MSMEs usually do not invest in technology because of following reasons:
1. Lack of knowledge about the advantages of using technology for their enterprise.
2. Lack of Capital to invest in technology and restricted understanding using it
3. Lack of resources including trained manpower are also limiting the use of technology by MSME.
How Technology adoption can assist MSMEs
1. Using CRM software to interact with customers will help SMEs build long-lasting relationships with their customers.
2. The possibilities of errors are reduced significantly. This can help the MSMEs to save time and value and thereby increase productivity and efficiency.
3. Marketing becomes easy and digital presence differentiates the enterprise from its competitors.
4. With effective and improvised marketing coupled with increased productivity generates desired results for the enterprise.
If we talk about the reasons for not investing in technology by MSMEs, the primary reason is lack of funds to invest in technology. Therefore, if any kind of capital assistance is given, MSMEs would certainly go for technology adoption as benefits of technology adoption are immense and to avoid being driven out of the market.
LMCPL assists their MSMEs clients to get assistance @50% on the cost for adopting technology from recognized National Institutes subject to a maximum of Rs. 25 lac.
We have clients who embraced technology with our assistance and are enjoying true benefits of technology such as improved relationship with customers, effective marketing and increased competitiveness and this is not all there is much more for MSMEs.