In India, medium-sized and large businesses are adopting technology in major ways. But small business companies are not aware and benefit a technology can bring to their business. What are their concerns adopting a technology? Why they are unaware of the facts and what is stopping them to move ahead?

IT adoption by SMEs differs from larger organizations because of their specific characteristics, such as resources constraints. They are unaware of challenges of initial adoption, implementation; post adoption and their readiness to accept those challenges in reality. Some of the main reasons behind Indian SMEs avoiding the adoption of technology include budget and infrastructure limitations, shortage of skilled labor.

The modern economic environment which is dominated by globalization, high-competition and the knowledge and information revolution has made this business world complex to understand. The way business is conducted SMEs generally have limited access to market information and suffer from globalization constraint. In addition, no research data which help them adopt management techniques such as financial analysis, forecasting and project management.

Therefore, IT adoption and usage in SMEs is at a disadvantage. SME’s termed IT as “complex & expensive product “to adopt. But it is not true and no longer a complex & expensive one. Many companies have made them simple to adopt, easy to implement and operate.

India, according to a market research report, has the second largest population of SMEs among BRIC and the US. This has not gone unnoticed by IT vendors, who seek to tap the potential that India’s SMEs hold.

Technology is the backbone of modern business. But Indian Small and Medium Enterprises (SMEs) in India lag behind in the adoption of technology and this proves to be roadblock in the path of catching up with their global counterparts.

The government seems more than eager to help SMEs change their perception of technology though.

“Information Technology is a tool which enables you to innovate and make a difference. IT enables better information use and better information management” said in one of the SME event in New Delhi. Dr Ajay Kumar, the Joint Secretary of the Department of IT in the Ministry of Information and Technology, Government of India.