Digital payment technology and payment gateways add significant value for micro, small and medium enterprises (MSMEs) in India, while over 9 million GST-registered MSMEs could emerge as potential market for advanced offerings from fintech companies.
As per the ‘Indian MSME Impact Report 2019’ by fintech company Instamojo, 63 million MSMEs in India are working in a wide variety of businesses. The report is created on a six-month analysis of the MSME sector by Instamojo and Valuvox Business Solutions. Around 400 entrepreneurs were surveyed while making the report.
Nearly 75 percent of MSME respondents are of the view that technology acts as a medium to several challenges faced by the MSMEs, the report says.
It also revealed that small enterprises leverage online information, logistics and e-mail apps, social media, task management solutions etc. They also train employees on technology.
Around 50 percent of MSMEs have already adopted digital tools for business processes, payments, and online sales in India, adds the report. And nearly 9.2 million MSMEs registered under GST are most likely to be potential market for advanced offerings from fintech companies. These advanced offerings could comprises of business analytics tools.