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

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. 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. 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. 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. 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