📄 Abstract
Small and Medium Enterprises (MSMEs) play a vital role in the economic development of India by generating employment, promoting entrepreneurship, and contributing significantly to national income. In recent years, digitalization has become an important factor for improving business efficiency, expanding market reach, and increasing competitiveness. Despite various government initiatives such as the Digital MSME Scheme and other digital support programs, many small and medium businesses are still slow in adopting digital tools. This study examines the major problems hindering digitalization in small and medium businesses in India. The research is based on a survey of 49 respondents, including business owners, managers, and employees from different sectors such as services, retail, and manufacturing across urban, semi-urban, and rural areas. A structured questionnaire was used to collect primary data, and the responses were analysed using simple statistical methods such as frequencies, percentages, and ranking. The findings show that most businesses are still using only basic digital tools such as UPI payments, WhatsApp, and email. The major barriers identified include confusion in selecting suitable digital tools, fear of cyber fraud, lack of awareness about government schemes, limited digital skills among owners and workers, and resistance to change from traditional systems. The Chi-square test results confirm that these barriers significantly hinder the adoption of digitalization in MSMEs. The study suggests practical solutions such as providing simple digital tools, improving awareness about government schemes, offering training in local languages, strengthening cyber security awareness, improving internet connectivity, and providing financial support. The study highlights the need for coordinated efforts from the government, technology providers, financial institutions, and educational organizations to support the digital transformation of MSMEs in India.
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📚 How to Cite:
Miss. Smita S. Kerimane, Dr. Sushil B. Bansode , A STUDY OF PROBLEMS HINDERING DIGITALIZATION IN SMALL AND MEDIUM BUSINESS , Volume 12 , Issue 7, July 2026, EPRA International Journal of Multidisciplinary Research (IJMR) , Pages: 705 - 710 , DOI: https://doi.org/10.36713/epra28724