Nearly 78% of micro, small, and medium enterprises (MSMEs) have identified operational efficiency as their top priority for the upcoming year, surpassing revenue growth and customer acquisition, according to a report. India’s MSMEs are shifting their focus towards productivity, resource optimization, and operational resilience, with 71% prioritizing revenue growth and 64% emphasizing customer acquisition. The report from CyberMedia Research (CMR) highlighted a strategic shift in priorities among MSMEs.
The report also indicated a growing emphasis on digital transformation and cost optimization among MSMEs, with 58% focusing on digital transformation and 57% on cost optimization. This trend underscores a concerted effort by MSMEs to leverage technology for improved business outcomes. As MSMEs gear up for the next phase of development, 55% are considering adopting AI, while 52% are enhancing their cybersecurity preparedness, demonstrating a balanced approach towards innovation and resilience.
Prabhu Ram, VP of Industry Research Group (IRG) at CyberMedia Research (CMR), emphasized that MSMEs are increasingly prioritizing productivity, resource optimization, and long-term competitiveness in an uncertain business environment. He highlighted the importance of structured, assessment-led strategies in aligning MSMEs’ business needs with appropriate enterprise solutions, such as connectivity, cloud services, cybersecurity, and digital tools, to achieve tangible results.
Despite the recognition of the benefits of digital transformation, MSMEs continue to face challenges in translating intentions into actions. Budget constraints, skills gaps, cybersecurity issues, and technology uncertainties are hindering the pace of adoption for many businesses. About 26% of MSMEs cited a lack of internal digital expertise, while 20% struggled to identify suitable technology solutions. Additionally, nearly 6% of MSMEs mentioned a lack of trusted advisory support, underscoring the complexities MSMEs encounter in navigating the evolving technology landscape.
