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SMBs the Linchpins of India's Growth, to be a USD 80 Bn Opportunity by 2024, Says Zinnov~The SMB base is expected to increase from 75Mn in 2019 to 105Mn by 2024~ BANGALORE, Sept. 19, 2019 /PRNewswire/ -- Zinnov, a leading global management consulting firm, released the findings of its comprehensive study on Small & Medium Businesses (SMBs) in India, today. The study titled, 'Digital SMBs – Key Pillar of India's Economy', takes a look at the ever-evolving Indian SMB landscape with a new lens, and focuses on their transition from traditional SMBs to Digital SMBs. The study categorizes an SMB as a Digital SMB if they use a smartphone or a PC and Internet at the least, to conduct their business. Digitally-empowered SMBs are leveraging a combination of connectivity & communications, transactions & payments, discoverability, productivity-focused technologies, and are starting to extend into the world of Artificial Intelligence (AI), Automation, and Internet of Things (IoT).
The Zinnov study pegs the 2019 digital expenditure of Indian SMBs at USD 14-16Bn, of which the spend on productivity solutions accounted for 40%, followed by connectivity & communication technology at 30%. Additionally, digital discoverability solutions accounted for 20% of the total SMB digital spend, while another 10% was spent towards payment solutions & applications. The study pointed to the Indian government's role as a catalyst for SMB digitalization through bold steps like massive investments in building digital payment infrastructure, subsidies for technology adoption, and frictionless access to capital, to name a few. In addition, large enterprises are also enabling this SMB-led growth by encouraging their SMB partners and suppliers to go digital, and are even investing in skill development and technology platform infrastructure. Sharing his insights about the study, Praveen Bhadada, Partner & Global Head – Digital Transformation, Zinnov, said, "SMB digitalization in India will be a USD 80Bn opportunity and is already getting significant global attention. Global Tech Giants and tech ISVs are committing huge investments to the Indian SMB market. Private Equity and Venture Capital interest in the SMB aggregators and start-ups is at an all-time high and is resulting in the rapid valuation enhancement of such companies. By 2024, we expect the SMBs' contribution to the Indian GDP to grow from the current 40% to about 50%, on the back of pervasive digitalization. The rising performance of Digital SMBs will support adding 4Mn new jobs in the next 5 years, anchoring this segment as the linchpin for the Indian economy, especially in light of the purported economic slowdown, in the years to come." About Zinnov: Founded in 2002, Zinnov is a global management and strategy consulting firm, with presence in Silicon Valley, Houston, Bangalore, and Gurgaon. Over the past 17 years, Zinnov has successfully consulted with over 250+ Fortune 500 customers to develop actionable insights that help them in their transformation journeys. With core expertise in Product Engineering and Digital Transformation, Zinnov assists clients by:
With their team of experienced professionals and research teams, Zinnov serves clients from across software, semiconductor, consumer electronics, travel and hospitality, automotive, storage, telecom & networking, healthcare, banking, financial services, and retail verticals in US, Europe, Japan, and India. For more information, visit http://zinnov.com. Media Contact: Nitika Goel Logo: https://mma.prnewswire.com/media/694742/Zinnov_Logo.jpg
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