Operational efficiency overtakes expansion as top priority for 78% of Indian MSMEs: CMR
The survey found that 78% of MSMEs ranked operational efficiency as their leading business priority for the year ahead, ahead of revenue growth at 71% and customer acquisition at 64%.
- Jun 22, 2026,
- Updated Jun 22, 2026 10:26 AM IST
Nearly eight in ten Indian micro, small and medium enterprises are prioritising operational efficiency over aggressive expansion as they navigate cost pressures, technology gaps and an uncertain business environment, according to a CyberMedia Research study.
The survey found that 78% of MSMEs ranked operational efficiency as their leading business priority for the year ahead, ahead of revenue growth at 71% and customer acquisition at 64%.
The findings point to a shift in how smaller businesses are approaching growth, with companies focusing more closely on productivity, resource optimisation and resilience instead of pursuing expansion alone.
“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, Industry Research Group at CyberMedia Research.
“While revenue growth and customer acquisition remain relevant objectives, MSMEs are placing greater emphasis on productivity, resource optimisation, and building long-term competitiveness in an uncertain environment,” he added.
Digital transformation and cost optimisation are increasingly being pursued together. About 58% of the respondents identified digital transformation as a priority, while 57% said cost optimisation was a key focus.
Artificial intelligence is also moving up the agenda, with 55% of MSMEs looking at AI adoption as they prepare for their next phase of digital transformation. At the same time, 52% are strengthening their cybersecurity preparedness, indicating that businesses are balancing technology-led innovation with concerns around operational risk.
However, the ability to implement new technologies remains uneven. Budget constraints, shortage of skilled employees, cybersecurity concerns and uncertainty over which technology solutions to choose continue to hinder adoption.
Around 26% of MSMEs cited a lack of internal digital expertise as a key challenge, while 20% said they struggled to identify the right technology solutions. Another 6% pointed to the absence of trusted advisory support.
“A clear pattern emerges around execution-level challenges. Shortages in internal digital skills and difficulty identifying the right technology fit remain key constraints,” said Sugandha Srivastava, Senior Analyst, Industry Consulting Group at CyberMedia Research.
“These gaps highlight where structured advisory support can deliver the greatest value as MSMEs move from strategic intent to actual implementation,” she added.
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Nearly eight in ten Indian micro, small and medium enterprises are prioritising operational efficiency over aggressive expansion as they navigate cost pressures, technology gaps and an uncertain business environment, according to a CyberMedia Research study.
The survey found that 78% of MSMEs ranked operational efficiency as their leading business priority for the year ahead, ahead of revenue growth at 71% and customer acquisition at 64%.
The findings point to a shift in how smaller businesses are approaching growth, with companies focusing more closely on productivity, resource optimisation and resilience instead of pursuing expansion alone.
“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, Industry Research Group at CyberMedia Research.
“While revenue growth and customer acquisition remain relevant objectives, MSMEs are placing greater emphasis on productivity, resource optimisation, and building long-term competitiveness in an uncertain environment,” he added.
Digital transformation and cost optimisation are increasingly being pursued together. About 58% of the respondents identified digital transformation as a priority, while 57% said cost optimisation was a key focus.
Artificial intelligence is also moving up the agenda, with 55% of MSMEs looking at AI adoption as they prepare for their next phase of digital transformation. At the same time, 52% are strengthening their cybersecurity preparedness, indicating that businesses are balancing technology-led innovation with concerns around operational risk.
However, the ability to implement new technologies remains uneven. Budget constraints, shortage of skilled employees, cybersecurity concerns and uncertainty over which technology solutions to choose continue to hinder adoption.
Around 26% of MSMEs cited a lack of internal digital expertise as a key challenge, while 20% said they struggled to identify the right technology solutions. Another 6% pointed to the absence of trusted advisory support.
“A clear pattern emerges around execution-level challenges. Shortages in internal digital skills and difficulty identifying the right technology fit remain key constraints,” said Sugandha Srivastava, Senior Analyst, Industry Consulting Group at CyberMedia Research.
“These gaps highlight where structured advisory support can deliver the greatest value as MSMEs move from strategic intent to actual implementation,” she added.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine