Bengaluru, NFAPost: PayNearby, a leading branchless banking and digital network in India has released its first edition of the ‘MSME Digital Index.’ The report provides a detailed analysis of tech awareness among Micro, Small, and Medium Enterprises (MSMEs) in Bharat (India).
According to the survey conducted by PayNearby among 5,000+ MSMEs in the retail space, it was found that over 71% of MSMEs use digital technology for their day-to-day business operations. Furthermore, more than 80% of MSMEs reported a positive impact on their businesses and personal lives due to the adoption of digital technology.
The survey revealed that the age group of 18-30 years consists of the most digitally adept small business owners, with over 75% of them owning smartphones and using them for their business operations and accessing digital content. This age group was closely followed by the 31-40 age group. It was observed that 32% of the digitally adept MSMEs in this age bracket had a monthly income exceeding ₹15,000. The widespread use of smartphones highlights the role of the Internet in bridging the infrastructure gap and driving tech inclusion among MSMEs.
Smartphones were found to be the most preferred digital device among MSMEs, with 68% of users favouring them. The report also highlighted that 66% of MSMEs use smartphones for business activities, consuming 2GB-5GB of internet data per day. Over 52% of these businesses spend less than ₹500 per month on internet consumption. Affordable internet prices and initiatives like the Digital India mission and BharatNet have played a significant role in improving internet penetration and bridging the digital divide. Mobile hotspots were the most common method of connecting to the internet at work (55%), followed by Wi-Fi routers (30%). Only a small percentage of MSMEs used ethernet cables or dongles. At home, 73% of MSMEs used mobile internet for internet connectivity.
The usage of digital devices primarily focused on work-related activities, with 32% of MSMEs spending 4-6 hours on their phones for business purposes. However, when it came to leisure activities like social media and online entertainment, the report noted that 60% spent less than 3 hours. Among social media apps, Facebook was the most popular with 27% usage, while YouTube was the preferred entertainment app with 47% usage. Interestingly, gaming apps were not commonly installed, as 57% of respondents reported not having any gaming apps on their phones.
The report also highlighted the usage of various software by tech-savvy MSMEs, with accounting software being the most commonly used (25%), followed by POS software (20%) and Customer Relationship Management (CRM) software (17%). These digital tools were utilized for account keeping, payment acceptance, transaction processing, and managing business operations.
In terms of financial services, Aadhaar banking and UPI were the most popular banking services among MSMEs at the last mile. WhatsApp and WhatsApp Business emerged as the most widely used messaging apps, with a cumulative usage of 97%.
When asked about the positive impact of technology on their businesses, 32% of MSMEs reported improved efficiency in business operations, while 28% noted an increase in sales and income. The main challenges faced by MSMEs in adopting technology were the high cost of technology (30%) and poor internet connectivity (29%). English was the preferred language for understanding technology and conducting business transactions for 65% of respondents, followed by Hindi at 24%.
Anand Kumar Bajaj, Founder, MD & CEO of PayNearby, commented on the report’s findings, emphasizing the need for a strong ecosystem that provides affordable and accessible technology and addresses tech inhibitions and apprehensions. PayNearby aims to empower MSMEs by providing new-age technology solutions and a tech-led Distribution-as-a-Service (DaaS) platform to facilitate their growth and revenue streams.
Jayatri Dasgupta, CMO of PayNearby, expressed the importance of providing necessary tools and solutions to MSMEs to bridge the digital divide and facilitate their integration into the fast-moving economy. PayNearby remains committed to connecting Bharat with India and ensuring digital inclusion for MSMEs.
