Small businesses in India are quickly shifting out of traditional modes of conducting business and moving their operations online in response to the economic challenges faced during the pandemic.

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Most notably, Micro, Small & Medium Enterprises (MSMEs) have rapidly adopted online payments with 72 percent of payments now taking place through the digital mode as against 28 percent through cash, according to a survey by Bluehost, a web solutions provider to MSMEs.

The survey was conducted over the first two weeks of June 2021 with 400 MSMEs operating in retail, educational services, technology services, advertising & marketing, travel and finance.

Since the virus outbreak in March 2020, repeated lockdowns have led to small businesses facing difficulty across the supply chain - from sourcing to delivery. Offline touchpoints moved online forcing MSMEs to go digital to sustain their businesses.

“The use of digital technologies such as websites, digital payments and e-commerce has helped small businesses cope with social distancing measures and ensure business continuity”, said Manish Dalal, Managing Director of Bluehost India.

Today, one out of two MSMEs believe doing business through the digital mode is a more successful avenue to conduct business and interact with customers. In order to ramp up their online presence to present a professional front, promote the brand and acquire new customers, at least 80 percent of the MSMEs surveyed now have a business website.

MSMEs are even adopting video conferencing, interacting via social chats, and listing on online marketplaces to further boost online presence. The surveyed companies said they will continue to invest in advanced digital tools such as social media marketing, search engine optimisation (SEO) and custom-built apps in 2021.

Given the severity of economic restrictions on doing business during the pandemic, 64 percent of the MSMEs surveyed said they are not doing as well as 12 months ago. That’s largely due to financial constraints. However, digital is one way in which small businesses in India are being resilient. ​

(Edited by : Pranati Deva)

First Published:Jun 25, 2021 1:36 PM IST