Micro Small and Medium Enterprises: Driving Growth through Digital Transformation

Abstract

Digital technology has the potential to considerably benefit India's MSME sector if the new infrastructure receives widespread support from the government, solution providers, and, most crucially, users. In recent years, the digital landscape for organizations has evolved dramatically, and various aspects have developed that can begin to shape the contours of a strong digital ecosystem. The difficulties arise from dealing with a complex and diverse MSME market, which is dominated by micro companies at various phases of development and with varying levels of digital readiness. A digital ecosystem that delivers end-toend solutions, from financial access, payments, operations, management, and even convenient skilling and knowledge sources, would be an encouragement for enterprises to fully adopt digital technology. This paper looks at the need for digital transformation in MSMEs and how it may help them grow. This paper takes a qualitative approach to the problem, examining it through a literature review. Building a digital ecosystem for MSMEs can transform India's MSME sector, according to the study. Among the critical insights needed to do this, efforts to enable small business digital transformation must include a wider understanding of the economy.