A new survey conducted by CPA Australia has revealed that over three-quarters of small businesses in India are set to grow in 2023, driven by innovative practices, digital technologies, and customer satisfaction. This puts Indian small enterprises at the forefront of the Asia-Pacific Small Business Survey, outpacing other countries. The survey collected views from 4280 small businesses in 11 Asia-Pacific markets, including 561 respondents from India.
Small businesses in India are poised for significant growth in 2023, driven by innovation, digital technologies, and customer satisfaction, according to CPA Australia’s annual Asia-Pacific Small Business Survey. The survey found that 73% of Indian small enterprises grew last year, up from 62% in 2021 and 77% expected to grow in 2023. Indian businesses topped the survey for expectations that they will raise strongly in 2023, with 61% of respondents saying so.
Furthermore, Indian small businesses are the most bullish in the region with their plans to hire more staff. 80% of respondents increased their employee headcount last year, while a record high of 85% plan to add staff this year.
The survey also revealed that India’s small enterprises have a renowned innovative culture and adopt technology. 79% plan to introduce new products, processes or services to the market this year, the highest result in the Asia-Pacific region for the third consecutive year.
India leads in regional digital transformation with high e-commerce, digital payment adoption, and social media usage rates. When Indian small businesses invest in technology, they do so with a high degree of success. The survey also revealed that India’s small enterprises have a renowned innovative culture and adopt technology actively. They were also the most likely to seek advice from IT consultants (42%).
Challenges Faced by Indian Small Businesses in 2022
However, 78% of Indian small businesses said internet connectivity issues affected their business operations. This was the worst result across surveyed markets, with a survey average of 31%. In terms of challenges, increasing costs negatively impacted 34% of Indian small businesses in 2022. Fuel costs (44%) were most detrimental, followed by transportation and storage costs. Mumbai businesses were most likely to face increasing fuel costs.
To combat this, many of India’s small businesses required external finance to cover rising costs and technological investment. 88% sought external finance last year, mainly for business growth (52%). 76% plan to seek funding this year, and 64% expect easy access. “The robust growth of India’s small businesses can be attributed to their constant improvement in customer satisfaction, strategy and management,” said CPA Australia Regional Manager for Emerging Markets Mr Nicklaus Wee. “The booming trend in business process outsourcing and IT outsourcing is creating many opportunities for small businesses in India.”
