Small firms have shown a “big digital shift” to shore up sales during the pandemic, rating agency Crisil said in a report. Among micro and small enterprises (MSEs), adoption of digital sales channels has risen sharply since the covid-19 outbreak for those with annual revenues under ₹25 crore, it said. The survey covered 566 MSEs with annual turnover of up to ₹25 crore. Of these, 45% were micro enterprises generating less than ₹5 crore in revenue, and the rest were small firms with revenue of ₹5 crore- ₹25 crore.
The survey, conducted in November, sought to find out whether there was greater use of digital channels, including social media, company websites, and online aggregators. As per the survey, about 60% of the respondents who took to digital sales said it helped them weather the pandemic-induced stress, while the rest said it helped to grow sales. Crisil director Bhushan Parekh said increasing digitization allowed MSEs expand to tap newer markets, besides offering improved access to credit. About 29% of the MSEs surveyed were using digital sales channels such as online aggregators, marketplaces, social media, and mobile marketing before the pandemic struck. That number has shot up to 53% among small enterprises and 47% among micro enterprises as of November. Despite their limitations, micro enterprises are not very far from small enterprises in digital adoption. Also, many more are now saying they will take the digital route soon he added.
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