A survey conducted by Capterra India showed that 80 per cent of small and medium sized (SMEs) enterprises require more government funding initiatives to support their digitalisation. The study, titled “The Digitalisation of Indian SMEs Survey- Part 2,” involved 435 respondents, of whom 341 worked for SMEs and 94 worked for enterprises with more than 250 employees. According to the survey, only 6 per cent of the companies suggested exploring alternative sources and less reliance on public funding. However, 40 per cent of the respondents stated that they had received government funding for digitalisation multiple times, while the other 20 per cent did not apply for it and 8 per cent were not aware of any available government funding, but were keen on applying.
As per Capterra India, in order to achieve the country’s target of becoming a $5 trillion economy with a 30 per cent contribution from the micro, small and medium enterprises sector to the gross domestic product would require the government to provide ample incentives, funding and budgetary allowances for SMEs in India. The survey also found out that cybersecurity issues were the most significant barrier to digitalisation for 36 per cent respondents, followed by integrating new technology with existing technology for 26 per cent and lack of expertise to implement digitalisation for 24 per cent.
Companies were not able to continue with digitalisation efforts despite the recorded benefits like increased efficiency, higher customer satisfaction and higher profits. About 37 per cent of the respondents reported a limited budget being one of the foremost reason for the same, while 29 per cent respondents lacked awareness regarding the software to improve their current processes and 34 per cent respondents raised concerns about overwhelming their employees with technology.
