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Press Release

YES BANK MSME study shows significant opportunity for digitization in the MSME sector

  • Over 2,700 MSMEs participated in the nationwide in-depth survey

  • Over 50% of digitally-enabled MSMEs achieved benefits such as increase in profitability

  • Key findings suggest lack of tech know-how, skilled manpower as barriers for wider Digital adoption

  • YES BANK outlines recommendations to accelerate digitization of MSMEs to enable the sector to increase their GDP contribution, as well as greater employment generation

Delhi, January 18, 2019: YES BANK, India’s fourth largest private sector Bank, conducted an in-depth 5-month survey covering over 2,700 MSMEs across 20 industries from all over the country, to analyse the impact of digitization on Indian MSMEs. The study, titled Impact of Digitization on MSMEs – the first large survey of its kind, identifies key drivers for digital adoption by MSMEs, as well as barriers and recommended measures for greater adoption of digital tech.

Key Findings

  • While over 60% of MSME respondents are Digital users, only 5% have fully embraced Digital technology.

  • Even though over 50% of the digitally-enabled MSMEs highlighted several benefits (increase in profitability, operational efficiency & improved customer engagement), lack of know-how and skilled manpower emerged as key barriers for wider Digital adoption.

  • Underscores the need for Government, banks, technology providers and corporates to work together for digitally empowering MSMEs, and hence resulting in increased revenues, lower risks, reduced costs and diversified market segments in the sector.

Greater digitization of MSMEs has the potential to enhance the sector’s GDP contribution (from the current 8% share), heighten employment opportunities for India’s growing workforce and boost overall economic growth.

L to R: Nikhil Sahni, Group President, YES BANK; S. K. Gupta, Deputy CEO, GeM, Ministry of Commerce and Industry, Govt. of India; Sumit Gupta, Senior Group President, YES BANK; Avinash Gandhi, Chairman, Schaeffler India; Subhransu Acharya, GM, SIDBI; Biswajit Bhattacharya,  Partner & Executive Director, IBM India

The study will be presented to key stakeholders including the Government, technology and other industry leaders, regulators, MSMEs and academia, to bring together all stakeholders, with the shared objective of ensuring that digital penetration within the sector is accelerated and monitored on a regular basis. It is vital that existing strategic initiatives such as ‘Digital India’, ‘Skill India’ and ‘Startup India’ are fully leveraged to provide greater impetus to MSME entrepreneurs and business owners, thereby accelerating the wave of digitization in the sector.

Speaking about the initiative, Sumit Gupta, Senior Group President – Mid Segment, Multinational Corporate Banking, Government Banking, Agri Business & Knowledge, YES BANK said: “The macro business environment that MSMEs are operating under is undergoing a transition. Digitisation is becoming increasingly vital for long term survival and future growth. The need of the hour is for MSMEs to take the lead and make digitisatisation an integral part of their business strategies. I strongly believe that the YES BANK study on Impact of Digitisation on MSMEs in India will go a long way in enabling the MSME sector realise the true potential of digitization. Entrepreneurs who are successful in understanding the power of digitization and harnessing it across their value chain will lead this new wave of inclusive and sustainable growth.


YES BANK is a ‘Full Service Commercial Bank’ providing a complete range of products, services and technology driven digital offerings, catering to Retail, MSME as well as corporate clients.

YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank. Headquartered in Mumbai, it has a pan-India presence across all 28 states and 8 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi.

For more information, please visit the Bank’s website at  


Alisha Prakash

Jyothi Goswami

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