How can technology influence the business growth of small and medium enterprises that belong to the secondary sector in India?
Technology affects the operations involved in the business operation. It does not depend upon the size of the enterprise but it possesses both types of effects tangible and intangible that helps in making money and also help in producing results that match the demands of the customers.
It provides an infrastructure that affects the efficiency, culture, and relationship of business. It also impacts the confidential information related to security and the advantages of trade (Acs, et al., 2012).
Business uses new technology to advertise and break themselves into new markets. It is used to propel the market as well as the business growth. It is also used by forward-thinking enterprises to digitally advertise to drive traffic. In today’s world, it has to be a part of the marketing which helps to grow the revenue of the business.
Importance of technology in the Secondary Sector and especially in metropolitan areas:
The secondary sector is also known as the industrial sector in an economy that is generally dominated by finished product manufacturers (Acs, et al., 2012).
In another sense is a part of the production process where goods are manufactured and finished before the process of shipping.
Technology changed the process involved in the secondary sector and has made it more productive. With the help of technology, a manufacturing company can manufacture many items in less time and at less cost (Aggarwal& Kapoor, 2012).
Technology has contributed in many ways it has played an important role in maximizing the quality of products and it contributed to reducing the cost of production per good, which lead to an increase in the profit of the company.
Technology offers a variety of tools that help in boosting and developing a business. The objective of involving technology in the business is to solve problems and to make their task easier.
Impact of technology on small businesses in the secondary sector:
Small companies use technologies in reducing their business costs. They have introduced software that helps them in automating their functions. With its help, it has become easy for them to manage their records and also helps to manage their expenses(Aggarwal & Kapoor, 2012).
It helps to bring more business and helps to take the organization closer to its customer. With the help of technology, a company can attend to the complaints of their customers in an easy and interactive way.
It provides a platform where people can visit the websites of the company to gather more information about it.
Benefits of technology in this sector:
It helps to provide faster, easier, and more effective communication.
It provides the enterprise with more efficient and better techniques that are used in manufacturing.
Due to its accuracy, it reduces the wastage of resources.
It increases the efficiency related to the ordering system and stock management.
It creates an ability that is used in developing innovative and new approaches.
It helps to generate new avenues for sales.
It helps in the effective promotion and marketing of a product.
In the field of economics, it is widely accepted that technology serves as a key driver in the economic growth of the company or economy. As it allows efficient production of goods and services on which the prosperity of a company or economy depends (Stern, 2019).
It is a need of today’s market:
As we all know that there is cutthroat competition in the market so in this kind of situation a company or a manufacturing industry has to focus on increasing its productivity and the services that are provided to the customer.
As the demand in the market is more so, to capture the market a company or an industry has to provide its products and services at a high pace while maintaining its quality.
So, to remain and fight in the competition a company has to implement efficient technology and equipment so, that they can fulfill the needs of the market without compromising on the quality of goods or services provided (Stern, 2019).
It helps in reducing human efforts and helps to meet the needs of the market accordingly.
Impact of technology on small businesses:
Small business has to work closely with their clients to offer them products and services. It helps them to collaborate with the employees and external vendors. It offers services like email and messenger that helps small business to open ways for online sharing and collaboration.
It is a very useful tool for small businesses because with its help the small business can sell their products online without opening their stores in the market which helps them to save their rent.
It has helped them to advertise their offered services and products at low and cheap costs with the help of social media.
So, by diverting this money they can they can improve and enhance their business.
Technology provides a flexible work environment:
It provides options for small business owners and employees to complete their office work while sitting at home. It has made it possible for small businesses to hire suitable talent from anywhere in the world. It helps small businesses to gain an edge in the competitive global environment.
Reasons why a small business should involve technology in their business:
1) Technology helps to protect the business against threats.
2) It helps in improving the efficiency of the business
3) It provides easy and effective methods of communication
4) It helps the employees to work efficiently.
5) It helps the business to gain extensive knowledge of the market
6) It provides various ways for the expansion of business
7) It helps the business to analyse and explore new fields in the market for growth.
8) Helps to increase the business capacity (Lambert, 2015).
Technology helps the business to expand furthermore. It helps them to reduce human efforts and complete their targets on time. It helps the business to meet the increasing needs of the market and
provide their goods and services without compromising on their quality. It saves time and bring best opportunities to the doorsteps (Lambert, 2015).
Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlsson, B. (2012). Growth and entrepreneurship. Small Business Economics, 39(2), 289-300.
Aggarwal, N., & Kapoor, M. (2012). Human resource information systems (HRIS)-Its role and importance in business competitiveness. Gian Jyoti E-Journal, 1(2), 1-13.
Lambert, S. (2015). The importance of classification to business model research. Journal of Business Models, 3(1).
Stern, D. I. (2019). Energy and economic growth. In Routledge handbook of Energy economics (pp. 28-46). Routledge.