FICCI, in partnership with Google released new study titled, â€œUnleashing the Potentialâ€ which analysed the role of internet on Small and Medium enterprises. The report compiled and presented by Nathan Associates showed how web-enabled SMEs boasted 51 per cent higher revenues than the ones that were not net savvy.
Indian SMEs have been benefiting from web-enabled business models and many have established and marketed themselves with the help of Google. The study found that an SME which adopted the Internet was able to grow its customer base by 7 per cent and employment growth by 4 per cent.
Speaking about the key findings from the report, Mr. Sanjay Bhatia, Chairman, FICCI MSME Committee and Chairman and Managing Director, Hindustan Tin Works Limited said, â€œThe Internet will play a vital role in narrowing the gap between Indian SMEsâ€™ potential and their aspirations. India has all that it takes to compete with other developing and fast growing economies. With the success of e-commerce companies like Makemytrip and Flipkart in India, we believe that more Indian SMEs can benefit from the Internet and eCommerce.â€
Small and Medium enterprises are critical to the economic growth in India and contribute more than 8 per cent to Indiaâ€™s GDP.
Many of the SMEs surveyed had used the power of the Internet to market themselves. By using tools such as Google Adwords, Google keyword, Google Analytics, these start-ups managed to grow their business exponentially in a short period of time. Direct mail marketing and Google rankings were some other services that the 951 companies surveyed used to generate leads and optimise their campaigns.
The benefits for SMEs are there for all to see.Â The internet has enabled broader geographic reach and inexpensive advertising to the start-ups that had been struggling in the initial years. But their potential can be explored further if all of them adopt internet based services for their businesses.