A few key drivers for MSMEs to consider when implementing a digital engagement strategy. These include intentionality, cost-effectiveness, complementarity, and integration. Considering all of these factors, you’ll be well-off on your way to holistically engaging with digital technologies.


Increasingly, small business support organisations recognise that digital technologies can transform how they support small businesses. As a result, these organisations are experimenting with new methods to reach small businesses. While traditional forms of support still matter to many small businesses, digital technologies have become integral to small businesses worldwide.

Creating a supportive environment for SMEs is crucial to their growth and vibrancy. Adopting a multi-faceted approach can tailor policies and schemes to each country’s specific needs. It’s unlikely that a one-size-fits-all approach can be successful, as SMEs differ from one another. Furthermore, the needs of SMEs are different across different types of businesses. Hence, a customised approach is necessary.

A community can transform abstract principles into collective action. A typology of digital small business support organisations can be helpful, but it only reflects a partial view of reality.. Some may compete with each other, while others work with other organisations as part of an ecosystem.

The key to effective digital engagement is intentionality. This should be paired with the needs of SMEs. For example, a private sector organisation may require many digital skills, whereas a not-for-profit organisation will try to maximise the number of users.

A key driver of digital engagement for MSMEs is the ability to integrate multiple digital services. These digital services help MSMEs reach a larger market and increase their income. They also enable them to monitor their activities better and minimise costs, including marketing, logistics, and shipping.

While established actors are still essential for supporting MSMEs, new players can increasingly offer a wider range of support than ever before. For example, e-commerce platforms, start-ups, and banks can now offer digital market access and credit. Start-ups and enterprise software can also provide digitalisation solutions, helping small businesses improve their efficiency and productivity.


Digital engagement is a crucial part of any successful business strategy. But it can also be challenging, requiring extensive resources and time. Small businesses can benefit from the expertise of digital support organisations. Some specialise in a particular field, such as digital marketing, or can orchestrate other services to assist their clients.

Organisations must consider their strengths organisations to be effective in supporting digital MSMEs. While catering to the demands of MSMEs can benefit the organisation and the economy, it may not be the most effective or profitable approach. Private sector organisations may be too expensive, while not-for-profit organisations may not attract enough users.

A robust, integrated program involving government departments, private sector service providers, and local partners will ensure a cost-effective approach for MSMEs. It will help MSMEs access better finance and services through a robust receivable finance market, increase MSMEs’ access to women-headed business services, and develop a national and state-level program that responds to the local context.

Governments must also encourage MSMEs to comply with domestic and international laws. In order to achieve these goals, government agencies should provide incentives for the digital transition and help these small and medium-sized enterprises meet their sustainability goals. It is especially important to help MSMEs in developing countries, which often face limited resources and many challenges.

Moreover, improved credit information can boost employment growth in MSMEs. According to PaisaBazaar, five of ten self-employed individuals are unaware of their credit score, making it essential for them to access formal finance. Introducing data streams from credit bureaus into the credit information market can result in a six-fold increase in employment for MSMEs.

Creating and maintaining a social media presence can be an effective way to create an audience for MSMEs. Social media platforms provide an online environment that supports small businesses in creating and disseminating content to reach a global audience. They also provide training and information on digital technologies and digital business.


The growing complexity of digital ecosystems has made it imperative for MSMEs to consider complementary capabilities. These capabilities help them overcome the constraints of limited resources. Moreover, they are critical for MSMEs in terms of profitability. Firms that have the ability to leverage multiple technologies, including software, services, and systems, will be more likely to achieve higher profits.

The micro, small, and medium enterprise (MSME) sector contributes close to 27% of India’s gross domestic product (GDP). To be more specific, it intends to assist persons living in disadvantaged conditions in the country’s more remote regions. According to the MSME annual report for 2021-22, out of India’s total of 6,33,88,000 MSMEs, 3,24,88,000 (or 51.25%) are located in rural areas, whilst 3,09,00,000 lakh (or 48.75%) are located in urban areas.

Despite the challenges associated with the adoption of digital technologies, they have also stimulated innovation opportunities. The use of data can help companies design better products and solutions for customers. However, the roles of different digital platforms in the digital engagement of MSMEs are not completely defined. This area needs research to understand how these platforms affect manufacturing MSMEs and their performance outcomes.

There are 12,201,448 Registered Micro, Small, and Medium Enterprises (MSMEs) in India at the Udyam Registration Portal as of the 25th of November 2022, according to the official data provided on by the Ministry of Micro, Small, and Medium Enterprises (MoMSME). Out of these, 11,735,117 (96.17%) are considered to be micro-enterprises, 426,864 (3.49%) are considered to be small businesses, and 39,467 (0.32%) are considered to be medium-sized firms.

To begin, we will go over the fundamentals of micro, small, and medium-sized enterprises (MSMEs) in India. This will include covering topics such as how they are categorised, the numerous financing programmes that are available to them, the roles that they play, and the significance that they have for India’s economy. The government also aims to create an inclusive finance sector, which will improve the performance of MSMEs.

Complementarity is an important driver of digital engagement for manufacturing MSMEs. In addition, network capabilities play a key role in supporting the MSMEs through supply chain innovation. MSMEs need these capabilities to improve the performance of their operations.

Big Data Analytics has been the driving force behind both significant change and rapid expansion (BDA). Businesses have started utilising BDA and AI in order to maintain a competitive advantage over their rivals (CA). The application of predictive analytics inside BDA systems is, in addition to improving operational efficiency, lowering risk, and fostering increased collaboration amongst the many stakeholders involved in business processes.


Integration as a key driver of digital engagement among MSMEs is essential to ensure that businesses reap the benefits of digital technology. For this, there are several factors to consider. First, small businesses must be educated about the benefits of digital integration. This way, they will be more confident to adopt digital solutions. Second, digital solutions must be flexible and allow for innovation. Third, government-led efforts should accommodate the heterogeneous nature of small businesses. In addition, government-led initiatives should be geared to provide end-to-end solutions and enable MSMEs to embrace digital solutions.

The integration will help MSMEs increase their competitiveness in the global economy. Moreover, it will allow them to participate in value chains, which will help them grow and develop. This will help them connect with other actors in the value chain as well as gain access to valuable market information. Then, they can improve their products and tailor them to their target market’s needs. In addition, integration can improve their productivity and quality.

In particular, they should consider the benefits of mobile commerce and eCommerce. Free trade agreements will reduce barriers to trade, creating a global marketplace for MSMEs. Furthermore, integration can facilitate the growth of global exports.

Integration as a key driver of digital engagement among MSMEs is an increasingly critical component in making their businesses successful. It can help them access new markets and provide financing for ongoing costs. It can also help them overcome challenges with unreliable income and lockdown requirements. The data generated by these platforms is increasingly valuable for mobile operators.

In addition to improving business performance, integration can improve the relationship between MSMEs and governments. By making it easier for MSMEs to access new markets and services, governments can further develop their relationships and foster innovation.


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