PayNearby Study: Over 55% of MSMEs Leverage Mobile Hotspots for Internet Connectivity in Day-to-Day Operations

In a revealing study, PayNearby disclosed that more than 71% of Micro, Small, and Medium Enterprises (MSMEs) in the retail sector employ digital technology for their daily business activities. Furthermore, the study highlighted that over 80 percent of MSMEs acknowledged the positive impact of digital technology on both their businesses and personal lives.

The study, titled “MSME Digital Index 2023,” is based on a nationwide survey conducted among 5,000+ MSMEs in the retail space, including kirana stores, mobile recharge stores, medical stores, customer service points (CSPs), and travel agents, provides insights into their technology consumption patterns and awareness levels.

According to the survey findings, small business owners in the age group of 18-30 displayed the highest proficiency in utilizing digital tools, with over 75 percent of them owning smartphones for their day-to-day business operations and accessing digital content. The 31-40 age group closely followed, with 32 percent of them reporting a monthly income exceeding ₹15,000. This surge in smartphone adoption underscores the internet’s vital role in bridging infrastructure gaps and promoting tech inclusion among MSMEs at the grassroots level.

Among various digital devices, smartphones emerged as the preferred choice, cited by 68 percent of users. The survey revealed that 66 percent of MSMEs utilize smartphones for business activities, consuming 2GB-5GB of internet data daily. Remarkably, more than 52 percent of these businesses spend less than ₹500 per month on internet usage. Thanks to initiatives such as Digital India and the Government’s BharatNet program, internet penetration has accelerated across Bharat, making it affordable and accessible to citizens, thereby narrowing the digital divide. In terms of internet connectivity, approximately 55 percent of respondents relied on mobile hotspots at their workplaces, followed by Wi-Fi routers at 30 percent. The usage of ethernet cables and dongles constituted a mere 10 percent and 5 percent, respectively. Furthermore, 73 percent of MSMEs connected to the internet at their homes using mobile data.

The survey findings highlight that digital devices primarily serve work-related purposes, with 32 percent of business owners spending 4-6 hours on their smartphones. However, for leisure activities such as social media and online entertainment, the report revealed that 60 percent of MSMEs spend less than 3 hours. Facebook emerged as the most popular social media app, with 27 percent usage, while YouTube claimed the top spot as the preferred entertainment app, with 47 percent usage. Interestingly, 57 percent of respondents reported not having any gaming apps installed on their phones.

Furthermore, the report indicated that among tech-savvy MSMEs, accounting software was the most widely used tool, with 25 percent of businesses leveraging it. This was followed by point-of-sale (POS) software at 20 percent and Customer Relationship Management (CRM) software at 17 percent for managing their operations. When asked about the purpose of digital device usage, 25 percent of businesses utilized them for accounting and payment acceptance, while 20 percent employed technology for transaction processing. These findings emphasize the importance of establishing a robust tech ecosystem that offers affordable and user-friendly solutions, while addressing the skill gaps and apprehensions of MSMEs. By doing so, we can empower MSMEs and facilitate their growth, contributing to a stronger India.