Growth & Jobs | MSMES urged to leverage technology

With the micro and small Enterprises (MSME) sector contributing $80.4 billion in revenue in 2018, and accounting for some 35 per cent of jobs in the Jamaican economy, the sector is being urged to leverage technology to facilitate further growth.

Kathryn Chin See, lead research analyst in innovation at MC Systems, a member company of The Jamaica National Group, stated that technology is not a gimmick or just for show; it is a necessity for small businesses to navigate and efficiently compete in the current global context.

“In this era in which we live and operate, called the Fourth Industrial Revolution, technology is not only a phenomenon, but a necessity for all forms of activity. The future of any business is digital. Therefore, small businesses must embrace technology and innovation in their processes to remain relevant and competitive,” she affirmed.

Chin See stated that this means going beyond a well-designed customer interface, such as a website, or an online form, or setting up social media pages, and providing Wi-Fi access to customers.

“Shifting to digital requires a change in mindset. It dictates that we take different perspectives of the business, the market and our customers, because embracing change requires a shift in company culture. Digital must, therefore, become ingrained in our thoughts; and actions, as well as everything we do and say,” she advised.

“It is crucial that technology becomes a part of the business strategy and operations to drive efficiency and make the business future-proof. Technology defines value to customers, creating that competitive edge, and plays a role in driving customer satisfaction and profitability,” she added.

Citing some of the digital technologies that small businesses can leverage to facilitate growth, Chin See said this include ‘cloud computing,’ sometimes referred to as, ‘Infrastructure’, as a service. She said this offers hosted services for storage and business applications.

“This contrasts with the typical need for expensive physical hardware and the costs associated with maintaining the systems. These services are usually subscription-based, which means that businesses pay for only what they need, at an affordable cost per usage unit, from service providers such as Microsoft,” she explained.

She also noted that payroll, accounting and other office productivity software, which would normally carry large licensing fees, are also available on hosted/cloud platforms as software, and a service.

“Here at MC Systems, we offer our payroll software BizPay Central as a tiered subscription service to satisfy varying business sizes and budgets,” she added.

Citing other technologies, Chin See said, ‘business process automation’ is another technology, in which automation tools can be leveraged to optimise internal business processes, managing the needs of a large workforce.”

Automating administration

“In addition, routine, iterative tasks can be automated and scheduled to run without any supervision. Automated administrative jobs mean that business leaders can focus on growth and development strategies,” she explained.

“To access the technology, small businesses don’t need to look outside of the Caribbean region, as the expertise is available regionally. And technology leaders provide these business solutions at a far more affordable rate than their North American counterparts,” she informed.

Dr Ron Foreman, acting president of the Small Business Association of Jamaica, said members have been innovative in using the latest of technology and are selling their services and products online, locally and internationally.

He however concurred that the sector should be using technology more. He said while some of its approximately 300,000 members were using technology, there was room for improvement.

Foreman said some members needed to have more understanding and embracing of technology and this he said, can be addressed through seminars and conferences.

“With regards to conferences, we have some being planned and will be rolling them out very soon,” he said. “We will also be working with other partners to engage our members to get workshops going to train them and engage in using these platforms.”

He said the main thrust was for increased exports. He noted that technology will assist in driving innovation in the sector. “If we do not get that level of further innovation developed, we are not going to have the true achievements that we need to be self-reliant and have sustainable growth,” he said, pointing out that Jamaica still has a trade deficit.