A Critical Analysis of Technology Adoption in Small Businesses: Opportunities and Limitations

Tech in Small Businesses: ‘Survival of the fittest’ is what we have been taught to believe over generations. This race to survival has necessitated even our local ‘cash-only kirana’ stores to adopt technology in their businesses – a feat that seemed unachievable until as recent as the Covid-19 pandemic. Is technology really necessary for small businesses, and if yes, then what kind of technology can aid small businesses? This article offers an overview of technology for small businesses and a critical analysis of whether or not technology benefits small businesses.

Tech For Small Businesses Highlights 

• The Covid-19 pandemic served as a turning point for small businesses to integrate technology in their businesses. 

• However, not all spending in the small businesses sector is equal. It varies from business to business, as demonstrated in a study by McKinsey & Company.

Image Source: McKinsey & Company

• This 2022-study showcases that smaller businesses stayed put on fixed internet and mobile connectivity, whereas bigger small businesses cut down costs across all technologies.

• An insightful study by Forbes into the small businesses sector in the USA reveals the majority of the small businesses were without employees. 

Image Source: Forbes Advisor

• Just like all technology, tech for small businesses is also inseparable from cybersecurity threats.

• Despite our constant innovations and search for solutions, why does a complete solution evade us?

What Are Small Businesses?

Experts opine that small businesses form the backbone of economies worldwide, contributing significantly to employment and GDP.

• In India, the Micro, Small, and Medium Enterprises (MSME) sector accounted for approximately 30.10% of the GDP and 45.79% of annual exports as of December 2024. (Source)

Image Source: PIB Press Release, 23rd Dec 2025.

• These statistics highlight the pivotal role of small businesses in economic development.
• The advent of technology has opened new avenues for these enterprises, as well as posed newer challenges to them.

But, what exactly are small businesses? In simplified terms, small businesses can be your local grocery store, restaurants, boutiques,  independent shops, to even freelancers, artisans workshops, repair workshops, consultants, bakeries, and even gym trainers.

Small businesses are essentially independently-owned enterprises with a smaller revenue as compared to big organisations.

Is Technology Mandatory for Small Businesses?

In an age where even the most basic necessities like food and medicine are bought online, this subheading may seem a bit redundant. Nevertheless, it is imperative to analyse why even simple, no-fuss, straight-selling small businesses have been sucked into the technology bubble.

Even today, you will find small business owners who possess just a basic phone, not even a smartphone. For such businesses, owning a smartphone is also technology, and that too one that can expand their horizons in the way they deal with clients and payments. For example, just by owning a smartphone, in India, a small business owner can accept payment on UPI, enabling a cashless mode of payment to clients who prefer it.

So, is technology mandatory? Maybe not. Technology for small businesses enables more options for the business. However, the digital leap is a double-edged sword, laden with pitfalls.

The Spectrum of Technology for Small Businesses

The new-age offerings in technology are many, and constantly evolving. Artificial Intelligence (AI) is the newest technology that businesses are adopting, however, there do exist even simpler forms of technology that can allow for multiple functions in a small business. Some of the most common B technologies adopted in small businesses are:

Smartphones

• While this may seem too basic in developed countries, there still exists pockets in developing countries where small business owners do not even own smartphones. 

• Adding a smartphone to a small business is the most basic start to adopting technology. 

• A smartphone allows not just more pictorial communication with clients, but also enables online payment facilitates, mobile access to surveillance systems, and a platform to build their social media presence.

Internet and Basic Hardware Set-Up

• In today’s cost-sensitive age, the cost of the internet and basic hardware like laptops, desktops, etc., play an important role in the decision of implementing such technologies in small businesses. 

• Internet connection is almost non-negotiable in most small businesses.

Digital Communication Platforms

• Communication tools consist of both softwares and hardware that facilitate communication, such as email, video conferencing, instant messaging tools, etc. 

• They help in seamless communication with clients, vendors, and even internally within the team.

• Digital communication platforms can be beneficial to small businesses like consultants, tutors, startups, etc.

• The pressing need for better communication technology was especially felt during the Covid-19 pandemic, as businesses struggled to establish more effective ways to work remotely.

• Today, as the hybrid mode of work continues in several parts of the world, tasks like onboarding remote employees and conducting client meetings have eased out due to the implementation of better communication technologies. 

• Some examples are Slack, Skype, Teams, WhatsApp, Zoom, Telegram, etc.

■ Also Read: Business Financial Analysis: A Simple Guide for Everyone

Digital Marketing Tools 

• Digital marketing is actually a very big marketing mechanism for small businesses to reach out to a larger audience without even having a physical space.

• Digital marketing consists of diverse segments such as social media marketing, email marketing and search engine optimisation (SEO).

• There are several small scale businesses that solely operate from an Instagram account today. Many don’t even see the need for additional websites as a simple DM (direct message) is enough to process orders. 

• For example, home-run clothes boutiques, shoe sellers, accessories, home-grown cosmetic brands, etc., in India successfully secure several orders through just a simple Instagram or Facebook post, and simple social media ad campaigns. 

• Integrating SEO enhances the reach of such small businesses even further.

E-commerce platforms

• A website is the online store of a brand where clients get to see not just the products, but other extended services such as contact methods, payment gateways and options, testimonials, selling policies of the brand, etc.

• Online marketplaces help small businesses reach a much broader customer base across geographies.

Cloud Computing

• Investment in physical IT infrastructure to build company servers is out of bounds for several small businesses due to significant costs.

• In such situations, cloud computing helps small businesses to store their data and access it from remote servers, eliminating the need for their own physical servers.

• There are several service models under cloud computing that small businesses can consider based on their needs, such as Platform as a Service (PaaS), Infrastructure as a Service (IaaS) and Software as a Service (SaaS).

• There are many cloud computing services providers, some commonly used are the Google Cloud Platform, Amazon Web Services (AWS), Microsoft Azure, Alibaba Cloud, IBM Cloud, Oracle Cloud, etc.

Customer Relationship Management (CRM) Systems

• CRM tools help in managing customers, whether it’s analysing their data, supporting sales and targeted marketing, or even simply customer service functions.

• These tools also help in better communication for example sending post sale emails, or newsletters, etc.

• There are several CRM tools available today, like HubSpot, Salesforce, Pipedrive, Zoho CRM, Zendesk, Microsoft Dynamics 365, insightly, to name a few.

• Integrating CRM tools into small businesses does contribute to a significant cost – a decision that needs to be taken by the business after weighing the pros and cons.

Enterprise Resource Planning (ERP)

• Enterprise Resource Planning (ERP) is the software that ties in all the important functions of a business like finance, operations, manufacturing and supply chain management.

• Integrating ERP within a business does have significant costs associated with it.

• An increasing number of small scale businesses are opting out of ERP technology due to the high costs.

• Examples of ERP softwares are Netsuite, SAP, ProShop ERP, etc.

Technology in India for Small Businesses

India’s small business sector has witnessed a significant shift towards technology adoption in recent years. Several factors contribute to this trend:

• Government Initiatives: Programs like ‘Digital Unlocked’, a collaboration between Google, the Indian School of Business, and the Ministry of Electronics and Information Technology, aim to promote digital awareness among small businesses.

• E-commerce Boom in India: E-selling platforms like Amazon and Flipkart have provided small businesses with avenues to reach a wider customer base.

• Increased Internet Penetration: The proliferation of highly affordable smartphones and data plans has facilitated greater access to digital tools.

• E-commerce Integration Initiatives: Many Indian artisans and handicraft producers have on boarded onto e-commerce platforms through initiatives like Flipkart’s Samarth Programme, expanding their market reach.

• Digital Payments: The adoption of digital payment solutions, such as the UPI, has enabled small retailers to offer convenient payment options, contributing to enhanced customer satisfaction.

• Cloud Adoption: A Microsoft study revealed that 35% of Indian SMBs plan to be in the cloud within the next 2-3 years, indicating a positive outlook towards cloud technologies. (Source)

Benefits of Adopting Technology in Small Businesses

The benefits offered by implementing tech in small businesses have been illustrated below:

• Operational Efficiency: Automation of routine tasks reduces manual errors and frees up time from repetitive tasks, creating time for other strategic activities.

• Cost Reduction: Cloud services and digital tools eliminate costs related to physical IT infrastructure. They also come with subscription models most often, eliminating the need for one-time significant capital expenditure, and instead allowing for a more spread-over spend.

• Market Expansion: E-commerce and digital marketing allows many small businesses to tap into national and international markets, irrespective of their own geographical location.

• Data-Driven Decision Making: If a small business invests in analytical technology, it can benefit from insights into customer behaviour, sales trends and operational performance, etc. offered by analytical tools. This technology facilitates informed decision-making.

• Improved Customer Experience: CRM systems and personalised marketing strategies can improve customer engagement and satisfaction.

Challenges of Adopting Technology in Small Businesses

Though there are advantages of adopting technology in small businesses, the glaring disadvantages are less either:

• Financial Constraints: Limited budgets can hinder investment in advanced technologies and necessary infrastructure. Also, more and more companies are willing to spend on better tech only if they are convinced it will contribute to their growth with ‘proven business benefit’, as per Microsoft’s study ‘SMB Voice and Attitudes to Technology. The study further reveals that about 26% of Indian small-medium businesses are willing to integrate technology provided it has proven benefits. 

• Lack of Technical Expertise: Small businesses may find new technologies too overwhelming if they do not have the in-house expertise to implement and manage it.

• Resistance to Change: Employees and management may be hesitant to alter established workflows and processes,.and move over to more technical processes. This is especially evident in community-run and micro enterprises. 

• Cybersecurity Concerns: With increased digitisation comes the pertinent risk of cyber threats. There have been innumerable instances till date that prove cybersecurity can be particularly detrimental to businesses lacking robust security measures. Technology for improving cybersecurity also costs significantly.

Cybersecurity remains a constant and severe threat, no matter how efficient the new technology claims to be. Ironically, the faster we innovate, the more we expose our vulnerabilities. And far beyond these latest technological innovations, is a bigger question – what is it that we really chase? A simple, disarming answer is ‘success’ – success as defined by societal norms.

Small businesses dream of scaling into medium enterprises, and with time, scale into a big organisation with great profits. No matter how successful we are, there is always an underlying dissatisfaction urging us to ‘achieve’ more and earn more. We are never satisfied with what we have, for the age-old saying ‘grass is always greener on the other side’ is a real human tendency.

Jagatguru Tatvdarshi Sant Rampal Ji Maharaj enlightens us with yet another unthinkable and rarely explored connection of technology and innate human tendencies to our origins and the way this world is governed.

When Enough is Never Enough: The Spiritual Truth You Were Never Told

Sant Rampal Ji Maharaj divulges that this constant urge to acquire more and more in order to ‘become’ happy, spares none. Not even the deities within this domain of 21-universes. 

He explains that a poor person believes a rich person would be happier. A rich person thinks the king would be happier; the king thinks deities would be happier, and even the deities in this world are burdened by sorrow and unrest. There is no true peace and happiness here.

This constant insecurity stems from the unequal distribution of resources in this world, giving rise to constant competition and leading us to accept the conditioning – ‘survival of the fittest’, without even realising that the word survival is a trap itself. Trapping us into the vicious, never-ending cycle of life and death. Saint Garibdas Ji Maharaj has stated in His divine verses:

Mard gard mein mil gaye, Ravan se Randhir | Kans kesh chanur se, Hirnakudh Balbir ||

Teri kya buniyad hai, Jeev janm dharlet|

Garibdas hari naam bin, Khali parsi khet ||

Sant Rampal Ji Maharaj shares that our endeavour should be to rise from this deception and seek the path to salvation. The only path that will liberate us from the constant pressure, disappointment and dissatisfaction this mortal world offers.

The singular path to salvation is the true worship of our Supreme Creator, our real Father, God Kabir. The worship of God Kabir works only when granted by the real Tatvdarshi Sant. Today, that Complete Saint is none other than Sant Rampal Ji Maharaj – the sole spiritual guru Who reveals complete spiritual knowledge to devotees. 

Come, take refuge in the only Complete Saint in this world and end your sufferings forever. Experience His divine wisdom and unrivalled spiritual knowledge by visiting:

• Website: www.jagatgururampalji.org
• YouTube: Sant Rampal Ji Maharaj
• Facebook: Spiritual Leader Saint Rampal Ji
• Twitter: @SaintRampalJiM

Tech For Small Businesses FAQs

Q1) What software is best for small businesses?

Answer: There are many, it depends on the requirements and budget of the small business.

Q2) What is the best technology for small businesses?

Answer: Again, this is subject to the requirements and the budget of a particular small business.