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Small businesses are increasingly adopting digital tools in response to the pandemic with digital payments witnessing a significant rise according to the findings of the second edition of the MSME survey by Bluehost.
According to the survey, the adoption of digital payments has been the most notable among customers of Micro, Small & Medium Enterprises (MSMEs) during the past year with 72 per cent of payments happening through digital mode today as compared to cash (28 per cent).
Business website
The report further added the increased use of digital tools by MSMEs. 80 per cent of MSMEs surveyed that had a domain name have a business website out of which 19 per cent started a website after the pandemic.
The primary reasons cited by the businesses for having a professional website include presenting a professional front (63 per cent), promote their brand (62 per cent), and acquire new customers (55 per cent).
A majority of the MSMEs surveyed claimed to have created a website on their own (66 per cent), while the remaining (34 per cent) have outsourced it to a web agency/ freelancer.
However, a majority (58 per cent) of those who took the DIY (Do-It-Yourself) approach to set up their website say that they will still need some guidance to set up their website.
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For 60 per cent of MSMEs, digital modes of doing business are now acknowledged as being more successful avenues to conduct business and interact with customers. MSMEs adopted video conferencing (36 per cent), social chat (28 per cent), and listed their business on online marketplaces (23 per cent) to further boost online presence.
MSME’s surveyed showed a willingness to continue investing in digital tools in 2021 to grow their business. A majority of MSMEs plan to invest in social media marketing (55 per cent), Search Engine Optimization (51 per cent), and custom apps (47 per cent).
Showing resilience
Despite the uncertainty and challenges of Covid-19, MSMEs continue to showcase resilience, the report said.
While 36 per cent of all MSMEs surveyed said that they were doing fine (17 per cent of them doing well), 64 per cent cite that their businesses are not doing as well as 12 months ago. This was owing primarily to financial constraints (58 per cent). Despite this, 58 per cent of MSMEs are optimistic of recovery and are confident of surviving the impact of the Covid-19 second wave.
“Many small businesses have experienced an accelerated digital transformation this past year, and they are now exposed to an array of tools that can help them grow and promote their businesses further. The use of digital technologies such as websites, digital payments and e-commerce have helped small businesses cope with social distancing measures and ensure business continuity”, said Manish Dalal, Managing Director of Bluehost India.
Bluehost had conducted the survey over the first two weeks of June 2021 with 400 MSMEs in the segments of retail, educational services, technology services, independent bloggers, consultant, advertising & marketing, travel and finance.
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