Dec 2015 * Acharya Bangalore B-School, Bengaluru - At 6th International Conference on "MANAGING BUSINESS COMPETITIVENESS THROUGH TECHNOLOGY, INNOVATION AND BIG DATA"; ISSN NUMBER: 978-81-909312-3-8

This research paper is to understand the main challenges of the SME, Challenges related to uncertainties within the business environment can be overcome by adopting relevant technological solution. By implementing IT solutions, it is imperative that the organization will move towards the growth. IT is common in this global village scenario that technology has a huge impact on most the sectors and SMEs are no special. There is a need for the sector to undergo this transition in order to survive. In one way the sector acts as a backbone for the major industries across the globe. Being technically driven in order to match the requirements of their high net worth clients, IT has become a mandate to surrender to the available and suitable technological solutions. All this comes with its own challenges – cost, skill, infrastructure and compatibility – to name a few.

Apr 17, 2015 * Journal of Management Research of CMS Business School; ISSN NUMBER: 0976-7150

There are amazing facts about MSMEs on the Government of India’s MSME website. It states that “Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country’s GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains”. There are lot of schemes and programmes by the government for these MSMEs. Information Technology (IT) can play the role of an enabler in business and can help the business to improve its efficiency and effectiveness to gain core competence. MSMEs are not realizing the importance and significance of technology adoption to change their old ways of doing business. In MSMEs, IT has been considered in a supportive role instead of a business driver. For Micro, Small and medium sized (MSMEs); IT adoption is a huge challenge because it involves a lot of risk, fear of unknown and uncertainty about the new changes. The purpose of this paper is to analyze and understand the factors that stimulate or diffuse adoption of IT in SMEs. It tries to understand the perception of owners-managers with respect to adoption of technology and aims to study various aspects of SMEs with respect to IT inventory, budget, planning, enterprise size and its relationship with the budget that an organization has to adopt IT.