In the latest series of released data regarding the startups ecosystem in India and its relevance to the SMBs (small and medium businesses )across the country, a study by global management consulting firm Zinnov has find out that startups play an important role in the digitalization of SMBs, enabling them in areas such as discoverability, customer engagement, and digital transactions, and will continue to do so.
The study shows that Indian SMBs will spend $14-16 billion in 2019 on digital technologies.
The study by Zinnov also pointed out that small businesses are transitioning from traditional to digital with the use of technology: smartphone, PC or Internet: to conduct their business.
It further revealed that India is home to approximately 75 million such businesses that employ over 180 million people.
Emphasizing on Artificial Intelligence (AI), Automation and the Internet of Things (IOT) and its expanding influence on the SMBs, the study said that digitally-empowered SMBs are leveraging a combination of connectivity and communications, transactions and payments, discoverability, productivity-focused technologies.
SMB digitalization has made rapid progress, with over 50 million Indian SMBs using digital technologies in their business workflows, it said.
The report, based from the study also pointed out that over 600 aggregators, many of them new-age start-ups such as Udaan, Oyo, Meesho, Ola, Swiggy, and Rivigo have enabled over 10 million SMBs across discoverability, customer engagement, and digital transactions, and will continue to play an important role in SMB digitalization.
Furthermore, throwing light on the Indian government’s role in SMB digitalization, the study expressed that the government is putting effort through investments in building digital payment infrastructure, subsidies for technology adoption, and access to capital for the SMBs.
Large enterprises are also encouraging their SMB partners and suppliers to go digital, and also investing in skill development and technology platform infrastructure, the study added.
The study concluded by saying that the Indian SMB base is expected to increase to 105 million by 2024.