Impact Of Digitalization on Micro And Small Enterprises In Retail Sector With Reference To Coimbatore City

Abstract: This study investigates the influence of digitalization on performance of micro and small enterprises (MSEs) in Coimbatore city. The emphasis is upon the way automated tools such as e-commerce sites, digital payment systems, social media marketing and mobile applications affect business growth, accessibility to customers and operational efficiency.
Results showed that digitalization led to substantial increase of sales, greater customer engagement and higher operational efficiency amongst retail MSEs. Most of the respondents indicated growth in revenue and customer base after using digital tools. The full adoption of these technologies is stifled by challenges like technical difficulties, insufficient digital skills and high implementation costs. The finding of the study clearly indicates that digitalization play an important and essential role in improving significantly the competitiveness and durability of retail micro and small enterprises (MSEs). However, at the same time it prudently emphasizes the myriad challenges associated with digital technology adoption that are best surmounted through programs of training that provide employees both ample opportunities for skill building as well as sustenance support to manage change.

Keywords: Digitalization, MSEs, E-commerce, Digital Payments, Business Growth, Customer Engagement