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INDIAN SME MARKET
B2C in Size. B2B in Behavior.
10 million SMEs are looking forward to streamline their businesses with IT...
How BIG is the Indian SME Space?
Total Market

Market by Vertical

Total SMEs Market

50

8%

10
SMEs with PCs
SMEs with W...
Profile of SMEs
Ownership
63%

Many small businesses have
been started within last decade.
Considering the technological
a...
Issues faced and Status of Software Adoption
Issues

Software Adoption Barriers
38%

Reaching out to New
Customers

29%

2...
Reference from Zinnov - Indian SMB ICT Adoption Report 2012 for size of SMES
Reference from “SMBs : Current State of Softw...
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Indian SME Market- B2C in Size, B2B in behaviour

"10 million SMEs in India are looking forward to streamline their businesses with IT. An insight into their buying behavior and challenges"

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Indian SME Market- B2C in Size, B2B in behaviour

  1. 1. INDIAN SME MARKET B2C in Size. B2B in Behavior. 10 million SMEs are looking forward to streamline their businesses with IT An insight into their buying behavior and challenges
  2. 2. How BIG is the Indian SME Space? Total Market Market by Vertical Total SMEs Market 50 8% 10 SMEs with PCs SMEs with Website in millions 6% 4 2 0.5 0 Retail 20% Manufacturing Professional Services 8% Hospitality 10 20 30 40 50 60 8% 12% Education Travel SMEs with Website SMEs with PCs Total SMEs Market SMEs with Internet Addressable Market 9% Real State 19% 10% Others Market by Size DIY (Do-it-Yourself) software have good opportunity to address the large SOHO segment 8.9 0.43 0.16 in millions Micro (0-10 Employees) Reference – Zinnov Research on SMEs Small (11-100 Employees) Logistics Mid-size (101-1000 Employees)
  3. 3. Profile of SMEs Ownership 63% Many small businesses have been started within last decade. Considering the technological awareness, the tech companies can target them with new products. Years of Existence >30 years Majority of SMEs are self owned with single decision makers with shorter sales cycle. 8% > 20-30… 9% > 10-20… 22% > 7-10 years 23% > 5-7 years 17% 16% > 3-5 years 13% 14% > 2-3 years 7% 1% 4% > 1-2 years < 1 year Self Owned Owned by Family Partnership Private Limited Public Limited 3% 1% SMBs represent a mix of dynamic, young, experienced, indeoendent and risk taking entrepreneurs. Age of Owner 42% 24% 23% 9% 18-30 years Reference – Nielson-Nasscom Survey 31-40 years 41-50 years 51-60 years 2% >60 years
  4. 4. Issues faced and Status of Software Adoption Issues Software Adoption Barriers 38% Reaching out to New Customers 29% 28% 38% Poor infrastructure 30% 26% 25% 38% High Electrical Current Lack of skilled of funds for businesses and training outages Lack Lack Do 36% … issues are common acrosscost of hardware and software way of working employees of educationnot need any software Talent Customer Acquisition cities, highest among rural areas. 34% Role of Influencers Methods to Remove Barriers Owner 94 Family/ Friends 54 Accountants 24 16 Business Consultants 14 Salesperson 13 Reference – Nielson-Nasscom Survey 47 … Influencers play a big role in decision making, especially friends and accountants. 42 Tu to rials 29 Industry Associations In - p e rso n t ra in in g Demo 32 Employees Chartered Accountant 20% 41 On lin e Tra in in g 41 Easy to Use P ro d u ct s 41 On lin e / Off lin e … 39 … SMEs require certain level of hand holding. Though online training is becoming popular, most SME owners still prefer in – premise demo.
  5. 5. Reference from Zinnov - Indian SMB ICT Adoption Report 2012 for size of SMES Reference from “SMBs : Current State of Software Adoption and Outreach Strategies” NASSCOM – Nielson Report for profile of SMEs and issues and software adoption (Base size -1047) See how SMEs are managing their business : www.facebook.com/BUSYforSMEs www.busy.in

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