Page 63 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
Technology Management
Speaking at the Bengaluru Tech Summit, on 19th
November 2020, Indian Prime Minister Shri Narendra
Modi Ji said that “Earlier wars were determined by who
had better horses and elephants, then came the era of
re-power, now technology is playing a very important
role in global conicts.”
Investing in technology, using smart techniques is a
non-negotiable feature of today’s world. While the size of
the investment in technology depends on many factors
like industry, budget, stage of business lifecycle,
necessity of technology, availability of technology trained
workforce, no business can stay untouched from it.
As the companies move upwards in terms of
development, revenue and market share, technology
goes hand in hand. For Financial Management, many
tools such as Electronic billing, ERP based inventory
management, Accounting ERP are found very useful.

To understand the opinion of businesses in the MSME
sector, related to their technological efciency in
nancial management, they were asked to conduct a
self-appraisal and place themselves among Highly
efcient, Neutral, Relatively inefcient, Inefcient in
relation to use of technology.
Figure No. 15 - Technological Efciency in Financial Management

Neutral, 24%

Highly Effcient, 68% Relatively
ineffcient, 5% Ineffcient, 4%