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SMBs in Asia-Pacific can add US$ 2.6 trillion to GDP by 2024

by BQ News Bureau
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The digitalisation of small and medium businesses (SMBs) in Asia-Pacific could add US$ 2.6 to 3.1 trillion to Asia Pacific’s GDP by 2024 and contribute to the region’s economic recovery post-COVID-19, according to the 2020 Asia Pacific SMB Digital Maturity Study.
Asia Pacific could add between US$ 10.6 to 14.6 trillion to its GDP by 2024, according to forecasts by International Data Corporation (IDC). Digitalization of SMBs could account for as much as 25 per cent of that growth.
Based on a survey of SMBs from across the region conducted by IDC and commissioned by Cisco, the study shows that SMBs that are more digitally mature enjoy twice as many benefits in terms of revenue and productivity compared to those that have an indifferent approach to digitalization.
Nearly 70 per cent of SMBs in Asia-Pacific are accelerating the digitalization of their businesses as a result of COVID-19.
“SMBs suffered the hardest impact on the current crisis but are expected to bounce back the fastest. This is not just because most of them have had to rely on technology to continue to deliver to their customers but also because of their agility and adaptability to innovate. As the region starts to emerge from the pandemic, this trend will play a pivotal role in the economic recovery. Cisco is committed to working with SMBs to help them emerge stronger with the right digital solutions and strategy,” said Bidhan Roy, Managing Director, Small Business, Asia Pacific, Japan and China, Cisco.
The Cloud, a foundational pillar for digitalization, is the top technology investment priority for SMBs in Asia-Pacific, followed by security and purchase or upgrade of IT infrastructure software.
Within the region, SMBs in Singapore, Japan, and New Zealand continue to lead the Digital Observer group, with no changes in their ranking compared to 2019. However, mainland China, Taiwan, and Thailand surpassed Korea, Hong Kong, and Malaysia, respectively. There has been notable progress made by SMBs in Indonesia and Vietnam.
“Digitalization is no longer an option for SMBs – it’s a matter of survival. Corona has forced them to move to digital-first, becoming more dependent on technologies to ensure business continuity and resiliency the study added.

Adoption of digital technologies by small and medium businesses (SMBs) could add $158-$216 billion to India’s GDP by 2024 and contribute to the country’s economic recovery post-COVID-19, according to Cisco India SMB Digital Maturity Study 2020.

 

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