78% of Indian MSMEs prioritise operational efficiency over expansion: CMR study

A new study shows that the focus of India’s Micro, Small and Medium Enterprises (MSMEs) is on efficiency, not expansion. The results released by CyberMedia Research (CMR) suggest that nearly eight out of ten small businesses (78%) are now prioritising improving operational efficiency as their top priority for the year ahead, over traditional metrics like revenue growth and customer acquisition.The findings highlight a shift wherein instead of focusing strictly on expanding their footprint, Indian MSMEs are turning inward to optimise resources, boost productivity and build long-term operational resilience in an uncertain business environment. As per the CMR study, 78% MSMEs rank operational efficiency as top priority, 71% prioritise revenue growth and 64% give more weightage to customer acquisition.To achieve these goals, small businesses are attempting to balance tech innovation with financial discipline. The study noted that digital transformation (58%) and cost optimisation (57%) are moving hand-in-hand, proving that businesses are leveraging technology to squeeze more value out of every rupee spent. Looking toward the future, 55% of MSMEs are planning to adopt artificial intelligence (AI), while 52% are actively sharpening their cybersecurity defenses.

“Operational efficiency has clearly overtaken traditional expansion metrics as the dominant focus, signalling a move toward a more mature and resilient phase of growth,” said Prabhu Ram, vice president of the Industry Research Group at CMR.“While revenue growth and customer acquisition remain relevant objectives, MSMEs are placing greater emphasis on productivity, resource optimization, and building long-term competitiveness in an uncertain environment.

What stands out is how structured, assessment-led approaches are helping MSMEs match their specific business gaps to the right enterprise solutions — spanning connectivity, cloud, cybersecurity, and digital tools — turning strategic intent into measurable outcomes on the ground,” he added.

The growth hurdles and solutions

Despite a strong desire to digitise, small businesses face steep execution challenges, the report said, highlighting that translating a digital strategy into everyday operations remains difficult due to limited budgets, security fears and a lack of technical expertise.While talking about the biggest roadblocks to digital adoption, MSMEs cited several key constraints. While 26% said they struggle with a lack of internal digital skills and expertise, 20% find it difficult to identify the right technology solutions for their specific business needs and 6% point to a lack of trusted, professional advisory support.“A clear pattern emerges around execution-level challenges. These gaps highlight where structured advisory support can deliver the greatest value as MSMEs move from strategic intent to actual implementation,” added Sugandha Srivastava, senior analyst at CMR.To bridge these technical knowledge gaps, small businesses are turning to structured, assessment-led digital advisory programs. The study revealed that 62% of surveyed MSMEs now recognise the Vi Business #ReadyForNext initiative as India's largest digital advisory program. A huge 83% of MSMEs that completed the #ReadyForNext assessment reported clear, tangible benefits from the recommended enterprise solutions. Furthermore, among the businesses that fully adopted the recommended changes, 87% reported a massive drop in system downtime and fewer day-to-day operational disruptions.