The Confederation of Indian Industry (CII), in collaboration with Mastercard’s Centre for Inclusive Growth, is spearheading a digital revolution for micro, small, and medium enterprises (MSMEs) in West Bengal through Project Digital Saksham. This initiative, targeting Kolkata, Hooghly, South 24 Parganas, and Nadia districts, focuses on transforming industries such as leather processing, fruit processing, handloom, textiles, books, and paper.
Reviving Historic Industrial Clusters
Project Digital Saksham is playing a pivotal role in revitalizing Kolkata’s historic industrial heritage clusters, such as College Street Publishers and Book Retailers, and Baithakkhana paper and paper products. These clusters, integral to the city’s industrial identity for over 75 years, are now undergoing a digital transformation. College Street, renowned for its over 2,000 bookstores, aims to reach a global audience through this initiative.
Challenges to Digital Adoption
Despite the efforts, approximately 30% of businesses on College Street have yet to adopt digital platforms. The challenges they face are multifaceted and require targeted interventions.
Technical Hurdles
One of the primary challenges is the lack of technical know-how. Many traditional business owners are unfamiliar with digital tools and platforms. This knowledge gap makes it difficult for them to transition from conventional to digital operations. Project Digital Saksham addresses this by offering comprehensive training programs. These programs are designed to be accessible and practical, focusing on essential skills needed to operate in a digital environment.
Manpower Constraints
Another significant challenge is the shortage of skilled manpower. Small businesses often operate with limited staff, making it hard to allocate resources to digital transformation. Employees may be stretched thin, juggling multiple roles, which leaves little room for learning and implementing new digital strategies. To mitigate this, Project Digital Saksham provides training that is not only for business owners but also for their employees. By empowering the entire team with digital skills, the project ensures that businesses can smoothly transition to digital platforms without overburdening their existing workforce.
Security Concerns
Security concerns also play a crucial role in the reluctance to adopt digital tools. Many business owners fear cyber threats such as data breaches, phishing attacks, and online fraud. These concerns are particularly pronounced in the absence of robust cybersecurity measures and knowledge. Project Digital Saksham addresses these fears by including cybersecurity as a core component of its training. Business owners learn about the importance of secure online practices, how to protect their digital assets, and ways to mitigate cyber risks. This knowledge helps build confidence in using digital platforms.
Language Barriers
In addition to technical, manpower, and security challenges, language barriers also hinder digital adoption. Many training programs are available only in English, which can be a significant barrier for non-English speaking business owners. Recognizing this, Project Digital Saksham offers training programs in Bengali. This localized approach ensures that language is not a barrier to learning, making the training more effective and inclusive.
Also read: CII Conference: Empowering MSMEs for the Future
Tailored Training Programs
To address these varied challenges, Project Digital Saksham offers tailored training programs that cover social media marketing, e-commerce, and cybersecurity. These programs are specifically designed to meet the needs of MSMEs. The training on social media marketing helps businesses understand how to use platforms like Facebook, Instagram, and Twitter to reach a broader audience. E-commerce training covers setting up and managing online stores, handling digital transactions, and navigating online marketplaces. Cybersecurity training focuses on safeguarding business data, recognizing cyber threats, and implementing security best practices.
Expanding Reach and Impact
Project Digital Saksham is not confined to West Bengal alone. It is operational in 13 states across 55 clusters, aiming to reach 300,000 MSMEs. The project provides specialized training to over 75,000 micro-entrepreneurs, resulting in the adoption of digital tools by over 50,000 enterprises. This includes transitioning micro-enterprises from traditional to digital payment systems, assisting with e-filing of taxes, and supporting website development and social media marketing for online product showcasing.
The training provided under Project Digital Saksham is comprehensive. It covers essential aspects of digital commerce, such as product cataloging, digital marketing, and cybersecurity. By offering these trainings in Bangla, the project ensures that language barriers do not impede the digital transformation of local businesses. This approach has proven effective in empowering traditional businesses to connect with a wider market and enhance their competitiveness.
Strategic Collaborations
The success of Project Digital Saksham can be attributed to strategic collaborations. The CII has partnered with Mastercard’s Centre for Inclusive Growth and the National Institute for Micro, Small, and Medium Enterprises (ni-msme). This collaboration aims to educate and train micro and small business owners, enabling them to integrate into the digital economy, access credit, expand their market access, diversify their customer base, digitize financial operations, and solidify their supply chain.
Project Digital Saksham is a testament to the power of digital transformation in revitalizing traditional industries. By providing MSMEs with the necessary tools and training, the project not only helps businesses survive but also thrive in the digital age. The initiative’s focus on inclusivity and localized training ensures that even the smallest enterprises can benefit from the digital revolution. As Project Digital Saksham continues to expand its reach, it promises to unlock the full potential of MSMEs across India, driving greater profitability and financial resilience.