Microsoft smb research 2022: Indian SMEs lead global peers in tech spending: report

According to the Microsoft SMB Voice and Attitudes to Technology Study 2022, small and medium-sized businesses (SMBs) in India lead their global counterparts in technology spending, with around 35% dedicating more than 10% of their revenue to technology.

Growing customer base and improving customer retention are key drivers for technology adoption by SMEs in India.

“It is clear that linking technology investment and adoption to business strategy, as well as close collaboration with partners, is critical for SMEs to succeed. Organizations rooted in technology and committed to realizing their full potential, large and small, will Being able to stay ahead of the curve by becoming more agile, resilient and future-proof business,” said Samik Roy, Executive Director, Corporate Medium and Small Businesses at Microsoft India,

The report is based on a study by Analysys Mason of more than 3,000 companies with fewer than 300 employees in 10 markets around the world.


According to the report, less than a third of SMEs consider cost or value for money when evaluating new technologies, but half see it as a barrier to adoption.

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Microsoft SMB Research 2022 1ETtech

Illustration: Rahul Awasthi

“When SMEs evaluate new technology for their business, they consider a range of different factors. Reliability and security are paramount – SMEs want their technology to work and be safe without having to worry about downtime time or cyber threats affecting their business,” the report states.

More than a third of SMEs cited efficiency and the quality of customer support as other important factors.

The life cycle of SMEs

The report further shows that SMEs operate at different stages of the business life cycle, starting with startups (11% of the survey sample) and progressing to mature businesses.

Startups specifically invest in technology potential and are 1.6 times more likely to increase their technology budget by 10% or more than mature or declining SMEs. Most SMEs are in the growth or maturity stage. Almost all SMBs that have been in operation for 20 years or more are in a mature stage.

Microsoft SMB Research 2022 2ETtech

Illustration: Rahul Awasthi

Another important aspect raised by the report is the life cycle comparison of Indian and Chinese SMEs. According to the study, SMEs in India reported the shortest average tenure, with only 38% of them operating for 10 years or more, compared to 46% in other countries.

On the other hand, China has the longest average tenure – 53% of companies have been in operation for 10 years or more.

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