More than 73 percent of small and medium-sized enterprises (SMEs) in India are confident that they will survive and recover after Covid-19, a new report said Wednesday. The “HP Asia SMB Report 2020” showed that Indian SMEs are more confident than their Asian peers in recovering after the pandemic, as the regional average stood at 60 percent. This confidence is reflected in the fact that almost two-thirds of respondents in India believe that this period presents a good opportunity to reformulate business strategy.
Half of those surveyed believe that the pandemic will bring opportunities ultimately, but in the long term. More importantly, SMEs in India recognize the importance of going digital to revive their businesses. Three-quarters of the companies surveyed believe that digital adoption is essential or very important to their success, according to the report. “SMEs are critical to our economy, contributing nearly a third of our GDP and creating jobs for millions. The ongoing pandemic has affected SMEs as much as any other segment,” said Ketan Patel, CEO of HP India Market, in a statement. . “But the agility and flexibility in their operations, along with the adaptability to changing business environments and customer needs, means they can recover much more quickly.”
Indian SMEs have also recognized four key aspects that will help them recover better: the use of online tools, flexible work options, advice on strategy and innovation at work. Research showed that growth correlates with how a business values digital adoption for its success. Of the SMBs that reported good business growth last year, 56 percent see digital as a lever for success, and only 14 percent consider it of little importance. “A key research finding is that the more a company values digital transformation, the more positive they are about future growth, and nowhere in Asia is this reflected as strongly as in India,” Patel said.
The survey also addressed the key challenges that Indian SMEs have identified as obstacles on the road to recovery. While global instability tops the list of concerns, it is less pronounced in India than in the rest of the Asian countries surveyed. Other challenges include adequate cash flow, access to financing, and leveraging digital tools. For the study, 1,600 SMEs completed the survey between May 26 and June 7, which comprised 200 interviews in each of the markets: Australia, India, Indonesia, Japan, South Korea, Singapore, Thailand and Vietnam.
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