Small and medium businesses (SMBs) in India that make use of cloud and mobile tools have 27% higher revenue growth than businesses that are offline.
According to a Deloitte and Google survey of 500 businesses, digitally-enabled businesses are more likely to increase employment by up to 84%, increase access to international markets by up to 65% and like to offer new products by up to 4.5 times, when compared to unconnected SMBs.
- One-third of all SMBs in India are totally disconnected with no internet connectivity, no devices and no online presence. These businesses are witnessing an 8% decline in revenue growth annually.
- Businesses with basic digital engagement are performing better, but their revenue growth still stands at 0% annually. Intermediate businesses, on the other hand, are registering revenue growth of 14%.
- However, businesses that make use of advanced digital tech are witnessing an even faster growth of revenues at 19% per annum.
SMBs in India are significant to its economy. They employ over 106 million people making up 22% of the workforce and contribute 45% of the country’s total manufacturing output. It is therefore highly important to digitize these businesses in order to unlock their real potential.
The reports states that if India wants to lift its GDP growth to 8% each year, digitization of SMBs can create 50 million non-agricultural jobs. This is exactly what the Digital India mission rolled out by the government plans to do.