Page 64 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
The answer to the question “Where would you place your
business in technology efciency related to managing
nances?” are very encouraging. 68% respondents
placed themselves as highly efcient, 25% believe
themselves to be neutral. Only 5% and 4% believe they
are relatively inefcient and Inefcient, respectively.
This data shows that the Digital age has very much
arrived for the MSME sector. The penetration of
technology for better nancial management is a very
good sign for the development of the sector. As the
revenue and number of transactions increase, the need
to move towards technology enabled solutions increases.

ROI for investment in technology
Investments made in technology are expensive. If a
business invests money into technology, the
expectations related to saving in costs, better revenue
generation, avoiding wastages and improvements in
operations are natural. Any or all the above benets lead
to improvement in ROI.
ROI or Return on investment is a measure of protability
against investments. In the present times, where
generation of funds is critical, utilization of the same in
any differently than the optimum, is not acceptable. To
understand the advantage perceived by the MSME sector
by investment in technology, the respondents were
asked, “Are you able to calculate ROI for investment
made in technology for managing business nances?”

59% of the respondent stated that they can calculate ROI
for investment in technology, whereas 28% said they are
not. 13% respondents stated that they never invested in
technology. These are the respondents who have been
using handed down old technology and not very efcient
with it.