Role of Technology in Scaling MSMEs and Start-ups: A Quantitative Study of Rajasthan-based Firms"

Abstract

This research investigates the technology role(s) in MSME and start-up scaling in Rajasthan, India. Quantitative data were obtained from 140 firms from different sectors to understand how various factors such as digital adoption, training of personnel, cloud computing, and CRM system usage affect the growth of a firm. Data analysis was carried out using descriptive statistics, correlation, regression, and chi-square tests. Results indicate very strong positive correlations between use of technology and business performance indicators such as revenue growth and productivity, and also with customer acquisition. The regression model reveals that digital adoption and training of employees significantly forecast firm growth. Cost and lack of skills were stated by most of the firms as the main barriers to technology adoption. Chi-square tests, however, did not reveal any statistically significant association between the problems faced and revenue growth. These findings can be used to assist policymakers and business support organizations in creating an MSME ecosystem in Rajasthan with a digital edge.