Technological factors that affect the sustainability of SMEs

Article by
Mr. Girish Kumar H V
Assistant Professor, Research Scholar
Dept of PG-Commerce and Management
NCMS 

Technological factors plays a significant impact on the sustainability of Small and Medium-sized Enterprises (SMEs). These factors can either enhance business's ability to operate efficiently, effectively, reduce costs, and minimize its environmental footprint through technical aspects.

1. Digitalization and Automation: The adoption of digital technologies and automation can improve efficiency, reduce operational costs, and minimize resource wastage. SMEs that embrace digital tools for tasks such as inventory management, customer relationship management, and production processes can enhance their sustainability in future context.

2.Energy-Efficient Technologies: Implementing energy-efficient technologies, such as LED lighting, smart thermostats, and energy management systems, can help SMEs reduce energy consumption and lower operational costs while reducing their environmental impact in their working area in an organization.

3.E-Commerce and E- Marketing: E-commerce through digital marketing strategies can expand the reach of SMEs and reduce the need for physical stores, space for warehouse and lower marketing costs and storage costs. This can make SMEs more sustainable by reducing overheads and improving market access at larger level.

4.Data Analytics and IoT: The use of data analytics and the Internet of Things (IoT) can provide SMEs with insights to optimize processes, predict maintenance needs, and minimize resource consumption. For example, sensors can monitor equipment performance and energy usage for efficient maintenance and energy management.

5.Cyber security: Ensuring robust cyber security measures in place is crucial for protecting digital assets and customer data. A cyber security breach can not only lead to financial losses but also damage a company's reputation and sustainability.

6.Green IT Practices: Adopting eco-friendly IT practices, such as virtualization, server consolidation, and energy-efficient hardware, can reduce energy consumption and environmental impact in data centers and IT infrastructure in SMEs.

Incorporating these technological factors in their business strategies can helps SMEs to enhance their sustainability, reduce costs, and remain competitive in a conscious market. However, it is important for SMEs to assess their unique needs, resources, and constraints before adopting a new technology to ensure that they can meet with their sustainability goals.