The research report titled, “Does e-commerce impact small enterprises and employment in India?” stated that digitised SMEs increased their sales by 42 per cent and 40 per cent in T1 and T2 cities respectively
E-commerce users have recorded 1.5 times higher value addition with online businesses enjoying 194 per cent revenue than their counterparts, as per the report by Tata Institute of Social Sciences (TISS).
The research report titled, “Does e-commerce impact small enterprises and employment in India?” stated that digitised SMEs increased their sales by 42 per cent and 40 per cent in T1 and T2 cities respectively.
The report said that Covid-19 has encouraged businesses to adopt digital platforms, contributing significantly to business expansion, market coverage, labour productivity, and workplace modification.
Businesses that have adopted digital technologies have witnessed 40 per cent more employment than those that did not. 15 per cent of SMEs have hired new employees through their e-commerce participation,” the survey revealed.
E-commerce platforms have increased women’s employment, especially in the self-employed category (59 per cent) and women business owners (nearly 91 per cent).
The costs involved in running a non-digitised business is 25 per cent higher in tier-1 cities and 42 per cent higher in tier-2 cities than the digitised business.
“Digitised firms enjoy 178 per cent higher median revenue in T2 cities than non-digitized enterprises. 23 per cent of SMEs improved their intra-state reach and 16 per cent improved their inter-state reach,” the report added.