The Path Towards Digitalization: An Empirical Study Exploring the Digital Landscape of MSMEs

Abstract

Digitalization is the strategic utilization of digital technologies to redefine business models, opening new avenues for revenue and value creation. India finds itself amidst a digital revolution spurred by widespread internet availability, a burgeoning number of smartphone users, and a notable surge in digital media consumption. This transformation owes itself to the affordability of devices and accessible network costs. Its impact spans across diverse sectors of the Indian economy, transforming how urban communities access information and revolutionizing traditional practices among farmers, from cultivation to the sale of produce. This research paper delves into the empirical facets of digitalization within Micro, Small and Medium Enterprises (MSMEs), offering a comprehensive examination of the challenges and opportunities inherent in their digital transformation. Through a meticulous analysis of real-world experiences, this study illuminates the obstacles hindering MSMEs in their adoption of digital technologies. Moreover, this research unveils the promising prospects and opportunities awaiting MSMEs that effectively embrace digital tools, showcasing success stories that underscore the transformative potential of strategic digital investment. .The study revealed that among the digital channels, websites and SEO stand out as the most frequently utilized. While some digital channels might not see active use, online visibility remains a critical aspect. This suggests opportunities for educating and raising awareness among MSMEs, especially regarding the limited adoption of advanced digital channels. The study also emphasized that MSMEs are inclined to adopt digital channels that offer tangible benefits, are user-friendly, and cost-effective. Furthermore, the utilization of digital tools varies notably based on company size. Ultimately, this paper contributes to understanding the nuanced dynamics of digitalization in MSMEs and emphasizes the necessity of proactive measures to empower these enterprises in leveraging digital technologies for sustainable growth and competitiveness.