Covid impact on smb: SMBs banking on digital transformation to rebound from COVID impact: HP study


NEW DELHI: Small and Medium Business (SMBs) in India are looking to bounce back after facing stiff challenges due to the ongoing pandemic. The HP Asia SMB Report 2020 – a study conducted among SMBs in the region has revealed that over 73% of SMBs in India are confident that they will survive and bounce back post COVID-19. This number is higher than the regional average, which stood at 60%.

This is reflected in the fact that 64% of respondents believe that this period presents a good opportunity to reformulate the business strategy. And half of the sample believe that the pandemic will ultimately bring opportunity, but in the longer term.

SMBs in India recognize the importance of going digital to revive their businesses. 75% of the surveyed businesses believe that digital adoption is essential to their success. Indian SMBs have also recognized 4 key aspects that will help them best to bounce back. These include:

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“SMBs are critical to our economy as they contribute nearly a third of our GDP and generate employment for millions. The ongoing pandemic has impacted them as much as any other segment. It is critical to discover their challenges and address their pain points, which was ther reason for this study. The results of this study will enable HP in helping SMEs adapt to the new work environments, providing them the technology for innovation and drive growth for themselves,” said Ketan Patel, Managing Director, HP India Market, in a statement.


Challenges

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The survey also touched upon challenges that Indian SMEs have identified as roadblocks on the road to recovery. While global instability tops the list of concerns, it is less pronounced in India than the rest of the Asian countries surveyed.

The research shows that growth correlates with how a company values digital adoption for its success. Of SMEs that reported good business growth in the past year, 56% see digital as a lever for success, with only 14% considering it of low importance.





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