MSMEs go digital as the pandemic rejigs how business is done in India: Bluehost Survey

In India, small businesses are rapidly adopting digital modes of payments to conduct business amid pandemic induced challenges and restrictions. According to a survey conducted by Bluehost, a web hosting solutions provider, Indian Micro, Small and Medium Enterprises (MSMEs) are rapidly adopting digital payments over cash. As per the survey, 72% of the recorded payments were done through digital mode as compared to 28% of cash transactions.

The survey was conducted in the first two weeks of June 2021, which included 400 MSMEs from segments such as travel, retail, educational services, finance, technology services, independent bloggers, consultant, advertising and marketing.

The onset of the pandemic has highlighted the significant of leveraging technology in businesses. In fact, it has enhanced the pace at which companies, especially MSMEs, are implementing technology. After the pandemic hit, about 19% of the MSMEs launched a website in India, due to the need for acquiring new customers and brand promotion.

Mr. Manish Dalal, Managing Director of Bluehost India, said, "Many small businesses have witnessed a rapid digital transformation in 2020, and they have an exposure to various tools that can help them with brand promotions and expand their growth. Amid pandemic induced challenges, the use digital technologies such as e-commerce, digital payments, websites, etc. have helped businesses continue their operations."

The survey also indicated that a 66% of the respondents have formed their own website while 34% had outsourced the services from a freelancer or an external agency. 23% of the small and medium businesses also leveraged ecommerce platforms to get listed and boost online presence of their businesses or brands.

To further expand online presence, MSMEs are also adopting mediums such as video conferencing, interacting via social chats, etc. The surveyed firms stated that in 2021, they plan to continue investing in advanced digital tools such as custom-built apps, search engine optimisation (SEO) and social media marketing.