Impact of digitalization on the growth of MSMEs in India: A study in the district of Hooghly

This study investigates the impact of digitalization on the growth of Micro, Small, and Medium Enterprises (MSMEs) in the Hooghly District of West Bengal, India. MSMEs play a crucial role in economic growth and employment, and digitalization offers potential solutions to challenges they face, such as limited access to finance and markets. A structured questionnaire survey was administered to the owners and managers of registered MSMEs in Hooghly, and the data were analyzed using statistical tools. The findings revealed that a significant majority of respondents agreed that digitalization improved MSME performance (70%), enhanced employment opportunities (70%), helped poverty reduction (80%), improved business opportunities (80%), and served as a determinant of economic growth and development (80%). Chi-square tests confirmed significant associations between digitalization and positive outcomes. However, MSMEs still face barriers to digital adoption, including a lack of technical knowledge, inadequate infrastructure, and financial constraints. The study concludes that supporting digital transformation through policies, training, and infrastructure improvements is essential for MSMEs in Hooghly to fully leverage the benefits of digitalization and contribute to the region's economic development. Further research on specific digital solutions and their impacts could provide additional insights to guide policies and practices in this area.