Underprivileged areas are popular among small- to medium-sized enterprises/SMEs today. SMEs are businesses that are small or medium in size. In comparison, these businesses have low investment, turnover, and revenue. Yet, they contribute generously to the economy of underprivileged areas. SMEs play a considerable role in the economic development of underprivileged areas. Economic importance is vital for growth in underprivileged areas.
Economic development enables underprivileged areas to build more businesses and services. This would help create more opportunities for job seekers. In addition, this would meet the needs of general people too. For economic development, technology and digital platforms have become necessary. Through technology and digitalization, areas can have more accessibility and availability. Businesses can have more effective impacts that would benefit from their best outputs. As a result, the area will start developing.
The Challenges of Leveraging Technology for SMEs in Underprivileged Areas
Today, leveraging technology helps make the development even faster. However, there are a few challenges to it. Underprivileged areas do not have much access to high-speed internet and infrastructure. Thus, they can not get all the benefits of this technology every time. In fortunate, only a few people get access to good internet. Yet, they do not have enough knowledge of digital utilities and technologies. This happens because there is a financial scarcity to invest in learning technology.
Due to these challenges, leveraging technology in underdeveloped areas can have drawbacks. There could be security and privacy issues arising in terms of benefitting society. With all these cons, people are less prone to adapt to technology. They find it very hard to cope with technological operations.
Opportunities of Leveraging Technology for SMEs in Underprivileged Areas
Through leveraging technology, underprivileged areas could gain benefits to a great extent. Technology will make it very easy for SMEs to reach out to people. Through online platforms, there would be more market reach. Moreover, global supply chains and markets will also become more accessible. With the help of digital tools and applications, SMEs can adapt to specialization. This will increase their skills, resources, and hence, profits. In addition to all these, technology can easily advertise products and services. Moreover, the cost of advertising will narrow down through the Internet. People will get to know about the products and services of SMEs even more. Technological advancement would provide financial services and support to both SMEs and consumers. With easier transactions, the business cycle will increase even more. Hence, this will improve the economic condition of the area.
Case Studies and Best Practices
As underprivileged areas lack accessibility, they have to overcome many challenges. In Bangladesh, several mobile financial services have worked effectively for such areas. Bkash and Nagad are two significant examples of this. These let people efficiently operate transactions, take loans, and do other related services.
There is a lot of talk about successful SMEs today. An organization,10- Minute School initially started as a small organization to educate students online. Over time, this has become a top organization with the help of technology and digital platforms. Thus, with the help of technology and digital assistance, SMEs can stand out.
Government and NGO Initiatives
Governments support small businesses in using the Internet effectively. Along with the government, there are NGO involvements as well. Together, they provide training on digital tools and financial aid. Moreover, they guide online selling. These initiatives aim to empower these businesses. They teach them how to navigate the digital world and online presence. Also, they coach them to sell their products or services online. The goal is to ensure these small businesses in underserved regions can thrive in the online marketplace.
Recommendations and Strategies
Underprivileged areas should work on improving their knowledge of technology and digital operations. There has to be more digital infrastructure in these areas. Experts should primarily operate those. They can train and educate SMEs on technology and digital operations. Hence, SMEs could start learning and adapting to technology and useful digital tools. This would give better and more effective outcomes, enhancing their businesses. The government could also arrange incentives for SMEs in underprivileged areas to increase engagement. With financial support, entrepreneurs and SMEs will be more interested in technology. This will create a supportive ecosystem as a result.
Conclusion
These are the challenges and opportunities of leveraging technology and digital platforms for SMEs in underprivileged areas. It is not easy to overcome all the obstacles of illiteracy and resistance to technology. However, the aftermath of adapting to technology and digital tools is very effective.
Starting from easy accessibility to availability, leveraging technology is effective for SMEs. Thus, business influencers should invest more in this to help SMEs grow and improve the economy.
