A Study on Factors Influencing SMEs to Digitalise their Business

Raju Kumar Mahto; Shabana Bano; Ashutosh Kumar

doi:10.36948/ijfmr.2026.v08i02.71410

A Study on Factors Influencing SMEs to Digitalise their Business

Author(s)	Dr. Raju Kumar Mahto, Ms. Shabana Bano, Mr. Ashutosh Kumar
Country	India
Abstract	This descriptive research tries to identify the factors which might have cast a bearing on SMEs to digitalise their business by administering a structured questionnaire to 406 entrepreneurs managing SMEs in Chennai, selected using Convenience Sampling. Results of the study reveal that availability of skilled work force is the important factor casting significant bearing on SMEs deciding to digitalise their business followed by Demand of customers/suppliers, competition, minimising cost and accomplishing price competitiveness. Gaining price competitiveness, readiness of customers, cost of adopting new technologies and equipment, cost minimisation and infrastructure facilities have cast a significant bearing on business digitalisation endeavours of SMEs managed by entrepreneurs without much education and without entrepreneurship backing while competition has driven the business digitalisation endeavours of SMEs managed by entrepreneurs without any entrepreneurship backing. Demand of customers/vendors have driven SMEs managed by older entrepreneurs and entrepreneurs without entrepreneurship backing towards digitalisation of business while gaining price competitiveness has driven SMEs managed by younger entrepreneurs towards digitalisation. infrastructural facilities, cost of adopting new technologies and equipment, readiness of customers to adopt online presence, demand of customers/suppliers, cost minimisation, gaining price competitiveness and availability of skilled work force have driven SMEs engaged in manufacturing, retailing and services to digitalise their business. Readiness of customers to adopt online presence has driven large sized SMEs in terms of staff strength to digitalise their business while small sized SMEs have been driven by infrastructural facilities and competition. SMEs with more IT staff were influenced by competition, cost of adopting new technologies and equipment, readiness of customers to adopt online presence, demand of customers/suppliers and gaining price competitiveness to digitalise their business.
Keywords	Small and Micro Enterprises (SMEs), Digitalisation, factors influencing, Profile of entrepreneurs, Profile of SMEs.
Field	Business Administration
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-14
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.71410

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A Study on Factors Influencing SMEs to Digitalise their Business

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