Website adoption among MSMEs to grow to 3.95 mn in 2020: Study

Micro, small and medium enterprises, which have traditionally been shy spenders on technology, are now looking at beefing up spends and investing in online tools like website and social media to cash in on the Internet boom, says a study.
According to the study titled 'Tapping the MSME Potential' by IAMAI-IMRB International, 61 per cent of MSMEs polled said they believe it is important to have an online presence today.
"While conventional marketing practices like usage of sales team, newspaper ads, physical banners, pamphlets in newspaper still rule the roost, yet today one can see how new age tools like online media is gaining prominence in MSMEs marketing consideration set," the study said.

The relevance of online media is visible across all business types and especially among MSMEs that engage into travel/trade and logistics, IT/ITeS, BFSI and education businesses, it added.
"Website adoption among MSMEs is expected to grow three times from current 1.35 million to 3.95 million in 2020. Larger adoption of website presently is visible among MSMEs engaged into IT/ITeS, education, travel/trade/logistics and BFSI industries," it said.
Website adoption is very low among MSMEs engaged with retail and manufacturing industries, the study, which surveyed 994 MSMEs, added.

It said MSMEs across verticals were of the view that having a website will help in building professional image of their organisation in the industry and is as a key reason as to why they are likely to adopt a website in the future.

Increase in sales is the other top benefit mentioned that would drive adoption.
MSMEs showed high affiliation to .Com (81 per cent) by way of awareness, preference and adoption, followed by .IN (12 per cent) and .Co.In (4 per cent).
Also, current market size of corporate email id is a little less than one million and is likely to grow by 20 per cent to reach close to one million users in a year's time, it said.