Pandemic drives SMEs to go digital

A LocalCircles survey said that many small and medium enterprises (SMEs) in the country had no choice but to adopt digital strategy as their revenues got impacted due to the COVID-19 pandemic and the lockdowns that followed across India. At the same time, however, many of them benefited as they found new customers for products and services and watched a tremendous spurt in their revenues and profits.

“The COVID pandemic brought challenges for many small businesses in India and some of them had to literally initiate or expand their digital presence within a few weeks of the pandemic for their survival. Those in the direct-to-consumer domain, many of them started their own websites/apps, listed their products on eCommerce platforms or did both,” it said. It also stated that 61% MSMEs are doing their business via e-commerce platforms while 31% are doing so via their own websites and apps.

“Of those small businesses selling online, 61% are doing so via e-commerce platforms while 31% are doing so via their own websites and apps. And 57% MSMEs & startups who sell or transact online have concerns about key clauses in proposed e-commerce rules; Want compliance exemptions if annual turnover is less than Rs 5 crores,” it noted.