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India’s Micro and Small Enterprises Face Barriers in Growth

Monday, August 13th, 2012

India’s micro and small enterprises are slow in adopting new technology, according to a new study published by Intuit Inc., a provider of business and financial management solutions for small and medium-sized businesses.
Intuit’s study reveals that cost and questions on privacy and data security are amongst few barriers to technology adoption among India’s MSME community.Other barriers are lack of skilled labor; lack of awareness around the benefits of technology; and concerns over the reliability of infrastructure.
The findings of the study titled “Understanding and Overcoming Barriers to Technology Adoption Among India’s Micro, Small and Medium Enterprises: Building a Roadmap to Bridge the Digital Divide,” is based on original research across 12 cities in India.
Intuit suggests that in order to overcome these challenges MSMEs should make affordable technology solutions more accessible to end-users through government credits or easy financing options.
MSMEs should also focus on campaigns that leverage case studies around the return on investment of newer technologies for small businesses, including cloud solutions.
In addition, these companies can also design training programs that address key skill gaps throughout the supply chain.
The results of the report were recently released at an event hosted by government and business leaders.
“The Indian micro and small business sector has the potential to truly drive the future growth and prosperity of India and improve the lives of millions,” said shri Amarendra Sinha, Additional Secretary and Development Commissioner, Ministry of MSME. “We hope this discussion leads to an ongoing dialogue about how together government, industry and the non-profit sectors can jointly address challenges and create opportunities for MSME growth.”

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