Solving Problems in MSME through Digitization

Abstract

Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions. It is a common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. MSMEs in India face a number of problems - absence of adequate and timely banking finance, nonavailability of suitable technology, ineffective marketing due to limited resources and non-availability of skilled manpower. These are often confronted with problems that are uncommon to the larger companies and multi-national corporations. These problems include Lack of ITs Support, Lack of ITs Literacy, Lack of Formal Procedure and Discipline, Uneven ITs Awareness and Management Skill, etc. But Digitisation solves many problems of micro, small and medium enterprises as its proper utilisation at proper place and right time reduces cost of production which in turn helps in increasing profitability.