SMBs: Role of technology in maintaining business continuity amidst adversity

Small businesses in the manufacturing sector have been the most impacted by the COVID-19 pandemic, reveals a survey conducted by Dun & Bradstreet. Moreover, at least a third of the small businesses in India have been adversely affected. The Indian economy depends greatly on Small and Medium Businesses (SMBs) as they contribute to nearly a third of the GDP and generate employment for millions.  For many conventional small businesses in small towns, mini-metros, and tier 2 cities, maintaining business continuity has been a challenge.

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An article highlights that India’s GDP witnessed its biggest contraction since 1952 after its GDP shrank by 8% in the year that ended in March. As rising unemployment and dwindling savings have impacted growth, many economists have cut their forecasts for 2021.  Another side-effect of the pandemic has been the quick adoption of industry 4.0 technologies. Going forward, these technologies will be critical towards building resilience for SMBs in the face of adversity.  Based on insights from Forbes, let’s take a closer look at how technology can enable SMBs to ensure business continuity and build greater resilience.

Leveraging technology for business recovery

The digital divide has only increased in recent times. The SMBs that embraced technology have an edge over their counterparts: Business continuity is being maintained and the recovery has been quicker with the aid of robust digital systems in place. To expand and protect the business by unlocking opportunities and efficiencies is being made possible with the expedited adoption of technology as the speed to market has become more important.  Technology has enabled businesses to remain connected with their distributor networks, suppliers, other key stakeholders as well as customer and employees during business disruptions.

Access to analytics has played a critical role in maintaining the business continuity of technologically enabled SMBs. These SMBS garnered timely insights about changing marketing conditions and customer requirements that allowed them to take pragmatic business decisions.  Even prior to the pandemic, many SMBs were using data analytics technology to facilitate cross-selling and forecast sales. Today, data analytics is helping them not only survive but also thrive in the present scenario.  Apart from this, technologies like cloud computing are helping SMBs cut down on costs and maintain business continuity with remote working. Undoubtedly, SMBs that underwent a digital transformation a few years ago have been able to weather the business storm brought forth better than their peers who are still in a phase of transformation.

An article highlights that more than 26 Mn Indian SMBs have used apps like Google My Business, Search and Maps. These numbers are in stark contrast to that of 3 years ago where an online presence was made by only 5% of SMBs.  `

360-degree tech enablers

By leveraging technology, SMBs are fulfilling four critical business need gaps: 1) Quick adoption of digital payment channels 2) Remote working tools that are cloud based 3)Business automation 4) Visibility in e-commerce stores, backwards logistics integration, and aggregator listings.

Tech investments have acquired prominence for SMBs, many are seeking to reduce manufacturing wastage and improve process efficiency with tools such as automation.  The need for responsive and flexible infrastructures in SMBs that offers agility and scalability is the need of the hour.  Large enterprises too are helping Indian SMBs adopt technology faster.

An article highlights that Amazon, in a bid to enhance the digitisation of SMBs, intends to invest $ 1 billion. Jeff Bezos, Amazon’s CEO and Founder, states that Amazon’s investments and services would help Indian SMBs to export $10 bn worth of goods worldwide by 2025.  Further, to cater to the unique software and technology needs of SMBs, Dell is leveraging its Small Business Advisors network. Cisco too has made SMBs and SMEs a big focus as it has highlighted that 30% of its business in India comes from the country’s SMBs and SMEs.

The road ahead

Technology is enabling SMBs to foster innovation outside its traditional markets and scale globally.  Demographic shifts too are enabling the tech adoption of SMBs as many millennials have gone the entrepreneurship route. Technology is helping SMBs move up the value chain and unlock new markets.