India –The Largest SMB Country in the World


SMBIndian SMB IT industry to spend around US36 billion by 2015

Small and Medium Business (SMB) industry has always been an integral part of Indian economy. Since the independence era, small and medium size business units have introduced themselves and provided a helping hand to the enhancement to the country’s economy growth. These kinds of industries cater to different occupations, goods and services that may run on a small or medium operating unit. Other than producing and catering goods within the country today India has progressed and is exporting these goods and services from the SMB industries to global powers, there are around 1.5 million such SMB units that are involved into export business operations.

The present business in India’s SMB industry is $48.8 million at a CAGR of 4.5% and the sector witnessed a growth in the recent past; in the year 2013 where major changes happened into the segment and the units operating their business increased. The SMB business industry in India has a particular mix of micro, small and middle scale businesses. It is largely powered by the micro type business which holds major share of 95% followed by the small scale industries holding 4.8% and the medium business units having an impact of 0.2%. The country’s geographical conditions play a vital role in the behavior of the SMB sector as 55% of these businesses are located in the urban areas and 45% operations are present in the rural regions.

As per market research, there are various commodities and services that fall into the industry. Around 81.16 million people are employed into the SMB sector in the country; this number includes directly or indirectly connected workers in the segment. The Information Technology segment is most active in making the SMB industry successful in the country. Most of the businesses in this category use IT applications for their routine processes. The use of computer and the Internet has cut down the time consumption as well as the efforts involved. By 2015, the presence of IT in the SMB sector is estimated to grow to a whopping CAGR of 15%; the present value already stands at a whopping $24 billion.

The SMB industry is fast transforming itself from the ancient pattern of “paper-pen” working and getting used to the technology based applications which in turn are making their business units grow and experience enhanced profits. According to a study; there are around 50 million SMB units in India out of which 10 million are ready to use technology.

Out of those using technology, 5 lakh SMB’s have a dedicated website, 4 million of them use PC’s which is projected to grow at a rate of 30-35% for the years 2011-2015. These growths will double the technology base in the SMB industry in the speculated period.