Tech-savvy SMEs yield healthier growth: experts

LAHORE: Small and Medium Enterprises (SMEs) that utilise mobile technologies stay ahead in the market, display efficient operations and compete with much larger players, experts suggest on Thursday.
“Research has shown that SMEs taking full advantage of mobile technology grow at a faster pace of 1.5-2 times than their peers that still ignore these powerful tools,” said Almas Hyder, whose Engineering SME was recently listed at the Karachi Stock Exchange.
He said it has also been established globally that SMEs adopting mobile technology create three times more jobs than those that lack this technology.
Smart SMEs employ the full range of available tools, such as basic productivity tools (voice, text, and email), operational tools (real-time job tracking and mobile data analytics), and sales and marketing tools (mobile-friendly website and company apps).
These mobile capabilities allow them to be more innovative and, in some cases, fundamentally transform the way they operate.
Hyder said in Pakistan most of the SMEs are still mobile laggards.
Mobile laggards generally have low levels of technology adoption and limited mobile presence. They have not integrated well-established tools into their business models and have not explored the benefits of more sophisticated technologies, such as a mobile app or mobile data-capturing tools.
He said smart phones are available in every part of the country still the avenues provided by this technology are restricted to larger cities alone.
“Even in these cities only about one third SMEs take advantage of the available technology.”
Academician and entrepreneur Dr S M Naqi said numerous SMEs succumbed to the less favorable economic conditions in the country.
The markets have been taken over by larger firms, but still about 15-20 percent small and medium enterprises have grown over years at four to five times the average manufacturing growth rate in the country.
He said these firms were operated by smarter entrepreneurs who realized that demand is bound to increase as the proportion of young adults increase.
These SMEs introduced products that this consuming class needed. They collected the data through technology and expanded operations based on insights taken through mobile penetration.
Naqi said according to Organization for Economic Cooperation and Development (OECD), SMEs are responsible for around 65 percent of all the jobs in the country.
“There is thus a sizable potential opportunity for SMEs that adopt mobile technologies,” he added.
In Pakistan the proportion of SMEs is much higher. However those shying away from technology are on their way out.
Information technology expert Fatima Asif said approximately one fifth of SMEs fall in the category of mobile leaders in Pakistan, and these leaders are demonstrating exceptional performance relative to both followers (who are now adopting technology) and laggards (that still operate on conventional technology).
She said mobile technologies provide leverage to the SMEs against larger firms. This facilitates mobile leaders to grow faster than the economy as a whole.
Global research has shown that mobile savvy SMEs have posted a revenue growth of 1.5 to 2 times faster than laggards and have added around eight times more jobs over the past three years.
She said SMEs benefitting from the mobile technology report greater benefits than laggards in terms of increased revenue, efficiency gains, and innovation.
This is due to the fact that mobile leaders can reach more customers and engage with them through additional channels, increasing opportunities for marketing and sales.
Moreover, these SMEs also use techniques to increase productivity, including mobile data, real-time information and applications that smooth operations.
For many consumers in emerging countries, mobiles are their only portal to the Internet, making it more crucial for SMEs to create a strong mobile presence.