Technology could help SMEs grow up to 30%

Small and medium-sized enterprises (SMEs)

that implement technology in their operations can increase their profit up to 30% more than the ones that don’t, said Ruba Borno, vice president of growth and head of staff for Cisco’s CEO .

“There is a close relationship between the adoption of technology and the SMEs’ growth, which constitute a large majority of businesses worldwide. This is a call to action for the Mexican government to encourage the use of technology in these small companies,” Borno stated at a conference during the Cisco Live 2018.

According to the National Institute of Statistics and Geography (INEGI) , there are 4.1 million SMEs in Mexico, from which 97.6% are micro enterprises which concentrate 75.4% of overall jobs in the country.

Borno mentioned that small and medium-sized businesses employ 90% of people in the world, more so in Mexico.

“Greater connectivity allows for companies to grow and reach more clients and audiences,” she added.

On the other hand, a decrease in innovation causes companies to go bankrupt and die, “we believe it is our responsibility to help our clients innovate.”

Figures from the Federal Telecommunications Institute (IFT) in 2017 indicate that there are 43 economic units with broadband access out of every 100 companies in Mexico.

Members from the IT Management program at Cisco have recommended small and medium-sized businesses, as well as Mexican institutions, not to be afraid of technology.

Eddie Dejrhai

, director of the Ave María University , stated that technology is a business enabler which can lead companies to success. “Businesses can’t survive without technology nowadays. They must adopt it, administrate it, and be comfortable with it,” he claimed.

Dejrhai recommended companies to start with something small and simple.

“You shouldn’t try to run before you can walk. You don’t need large equipment for project development, you have to consider which ideas are worth investing in,” he explained.

On his part, Sampath S. Rengarajan , senior director of network architecture and technology services from the city of New York agreed that it is best to start with small things. “First, you must implement the technology that is strictly necessary and then grow from there, depending on what the company needs for further development,” he commented.

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