Bridging the Digital Divide: Why MSMEs Aren’t the Problem, Tech Design is

If we truly envision a Viksit Bharat—an India where every citizen and every business thrives—then this gap must be closed. But not through force-fitting complex software. The solution lies in creating technology that mirrors the agility, simplicity, and realities of small business life.

There’s a popular misconception that MSMEs resist technology because they lack knowledge or the ability to adapt. That couldn’t be further from the truth. In my experience, most small businesses are incredibly open to experimenting with new tools. But they’re equally quick to discard them if those tools don’t fit seamlessly into their daily hustle.

A small business owner doesn’t have the luxury of long planning cycles. Every new day can be full of unexpected events like a supplier delay, a customer asking for extended credit, price fluctuations, compliance issues, or receiving a surprise bulk order. Their greatest strength is the capacity for quick, intuitive decision-making, not a weakness.

However, the majority of digital products are constructed to dictate the structure rather than to accept flexibility. While attempting to “organise” MSMEs, they end up removing the very nimbleness that enables these businesses to be competitive.

The One-Size-Fits-None Fallacy

Whether it’s invoicing, salary, stock, or ledgers, software should slide into the entrepreneur’s flow like a familiar tool, not park itself in the way and demand a new manual.

We keep hitting a gap, but not the entrepreneur. It is the software which has no way of locating the person behind the business. Most platforms assume that simple means rudimentary or they will expect a small business to simply follow the same steps. For example, a quilt maker in Chandni Chowk, a tea seller in Gwalior, and an installer of solar panels in Nashik — all MSMEs. But what they do, their timing, their gear, and their future path, can vary wildly. It is like comparing a laundry service to a delivery startup in Bangalore. They are both moving at a very different speed and in a different manner.

If a digital tool tried to put them both into the same system, then there would be friction, distraction, and they would want to give up. MSMEs need tools that are off the shelf and can start and stop using them; tools that are fast, no crashing, keep up with change; aid speed and flexibility and don't get in the way.

More Thoughtful Ways to Grow Technology

To close the digital gap for good, we must shift how we see the challenge. Success is not in rolling out shiny, packed tools. It is in crafting solutions with care, realising that micro, small, and medium enterprises want a helping hand, not a tight leash. It means

• Crafting solutions for real-world chaos—cash transactions, late payments, vendor uncertainties 

• Backing sector-specific processes, such as lot tracking for pharmaceuticals or job work management for factories 

• Developing tools that scale with the company, not swamp it from the start 

• Building confidence—because small firms thrive on connections, and any system they adopt must feel like a reliable ally 

• Just as crucial is establishing robust local support networks—regional partners, groups, and information centers that can boost uptake, not just setup. 

The path to a more robust economy starts with MSMEs. Digital change in India can't stop at the top.  The true shift begins when the tiniest creators of our economy get tools that match their pace, honour their distinctiveness, and boost their toughness. We need to stop asking MSMEs to squeeze into our programs. It's high time we create programs that fit into their world.

Tejas Goenka is the Managing Director at Tally Solutions.