Digitalisation is no more an option for businesses to function. It has now become important for businesses to have an omni channel presence to create immersive customer experiences. According to a survey conducted by ICRIER, around 80% to 90% increase in seller registrations with large e-commerce sites in India during the latter half of 2020 to sustain businesses during the pandemic. The adoption of digital technologies saw an uptake especially, during the last couple of years, which resulted in better opportunities and efficiency for small business owners and increase in revenue. MSMEs now have understood the importance of maintaining digital data and are steadily adopting digital technology for collecting data, analysing trends that are helping them to make better decisions.
There have been struggles to survive in the economy post the COVID-19. Small business entrepreneurs face higher risk but with the help of digitalisation they are able to expand and reach more customers. According to a Zinnov report, as small businesses digitalise, they will be around USD 85 billion by 2024. In this blog, small business entrepreneurs learn how MSME loans will help in digitisation of their business.
For small business owners taking the first step is the biggest challenge and beginners need to understand the importance of the basic digital technology. Initially, there will be some struggles to use and go around it to market business online, transfer payments and access financial services digitally. For a beginner to understand how the digital world works, it is best to start using social media applications mostly to gain knowledge and communicate. Also, to sell through e-commerce platforms and enable digital payments for their business.
Once they are comfortable with the above, they can further learn more about customer relationship management, branding and marketing, supply chain management and taxation. This can be followed by the use of digital applications such as search engine optimisation (SEO), Google Ads, etc along with standardisation of product, copyrights and trademark registration.
With the help of online platforms one can attend technology extension programs that are readily available. These are self-assessment tools providing a vast package of learning material. Creating awareness on how to protect data and manage capacity by building a data culture in MSMEs. Enabling policies to protect users against cybercrime along with creating awareness to mitigate the risk of fraud.
Digital platforms reduce delay in operational processes with the help of e-services such as e-invoicing, e-signature and electronic submissions saving cost and time. These self-servicing platforms also help set a regulatory framework to manage infrastructure in a more systematic way. As the digital footprint of MSME businesses increases their visibility is higher in the marketplace which also gives opportunities to reach more investors.
Encouraging MSMEs to be a part of online platforms which helps them in networking. There are many cooperation programs which give the benefit to share innovative ideas and advertise their business. The initiation of Global MSME mart is one such platform that is helping small business entrepreneurs digitise and expand their businesses. Having access to a range of strategic resources which provides new digital solutions through innovation and research policies is going to change the way MSMEs operate in India and the global market.
Small business owners will have ample opportunities with the digitisation of MSME loans. There will be fewer barriers and they can expand their business overcoming the limitations of having a physical location. Digitalisation has become essential as buyer demand patterns have changed and it is important to stay updated with current trends. Social media platforms can be used to have better customer engagement. This leads to higher customer satisfaction which adds reputation to the business. To digitise their businesses, MSMEs are leveraging business loans to adopt technology and digital solutions.
It will help promote cost-effective business policies. MSMEs that use the internet reduce their costs by about 22%to get raw materials, manage inventory and gain increased productivity. MSMEs that invested in digitalisation have increased their business profitability and raised their revenue.
With MSME business loans, MSMEs will help expand the business, lowering the barriers, creating awareness about the importance of e-commerce. Digital lending platforms will decrease the communication gap between the buyers and sellers which helps avoid miscommunication. Due to digital payments, there is flexibility and transparency in the business. E-commerce has also paved the way for MSMEs to serve rural and remote customers. Availing MSME loans will enable small business entrepreneurs to digitise their businesses.
Kinara Capital offers business loans without any property collateral. With a collateral-free business loan from Kinara, MSMEs can invest in technology to reach new markets, adopt advanced digital technologies, smoother business operations and be cost effective. As a digital lender, Kinara Capital is offering access to easy credit, customer-friendly products and services to MSMEs. Download the myKinara app today and start your digital business loan application today!
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