The Effect of E-commerce Adoption on Small and Medium Enterprises (SMEs) Growth in Maharashtra, India
DOI:
https://doi.org/10.17697/ibmrd/2025/v14i1/174289Keywords:
E-commerce, digital infrastructure, Small and Medium Enterprise, sustainable growth.Abstract
The rapid growth of e-commerce has transformed the business landscape in Maharashtra, creating remarkable opportunities for Small and Medium Enterprises (SMEs). This paper explores how adopting e-commerce influences SME growth in Maharashtra, particularly in terms of improving market access, lowering operational costs, and boosting competitiveness. From 2015 to 2022, e- commerce sales in Maharashtra grew from INR 50 billion to INR 600 billion, with a compound annual growth rate (CAGR) of more than 40%. SMEs that adopted e-commerce saw a 30% increase in sales, a 20% reduction in operational costs, and a 25% improvement in customer retention. However, there are challenges like inadequate digital infrastructure, which affects 60% of SMEs, low digital literacy among 50%, and regulatory challenges affecting 40%. This study highlights the transformative potential of e-commerce for SMEs in Maharashtra and concludes with practical recommendations for policymakers and stakeholders to promote sustainable growth through e-commerce integration.
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