HP Research: Generation X and Millennials Play an Important Role in the Digitalization of MSMEs

In the era digitization Increasingly rapidly, technology is becoming one of the main pillars in business development. As technology advances, society's expectations and views of technology itself vary, especially between different generations.

A recent study from HP revealed that the majority of millennials and X generations see technology as the key to future business success. However, a surprising phenomenon emerged when generation Z, who grew up in the digital era, along with generations baby boomers, expressed significant doubts about the benefits of technology investment, especially in Southeast Asian markets including Indonesia.

In a Kantar report supported by HP, it was found that technology is considered an important tool by 77% of MSME entrepreneurs to overcome business obstacles. Nonetheless, about 69% of those in the generation baby boomers (aged 59 years and over) do not see added value from technology investments.

Even more surprising, 57% of generation Z (19-26 year olds), who grew up in the digital era, hold similar skeptical views. In Indonesia, this mindset is also visible, technology seems to receive less support from 65% of generation Z and MSMEs baby boomers, when compared to their peers from generation X and millennials.

“HP understands how important the development of MSMEs is for Indonesia's economic growth. MSME players have to do many things—be at the forefront in an increasingly competitive business climate, increase consumers and income, and increase time and money efficiency. Therefore, technology should not be complicated and intimidating. "Technology must work simply, be smooth to use, be safe and be environmentally friendly," said Lim Choon Teck, Managing Director of HP Indonesia.

In today's digital era, success MSMEs often determined by the adaptation and use of technology. The research results show that there is an urgency for generation X and millennials to take control and guide MSMEs in this transition. They have an important role in overcoming psychological barriers, such as fear, doubt and anxiety that often arise when faced with new technology.

Credit: HP Smart Research Where IT Matters Study by Kantar Supported by HP

More than 70% of MSMEs expressed their concerns about the complexity and potential security risks of the latest technology. This figure is not just a statistic, but a reflection of the real challenges faced by business actors.

The Need for Synergy Between Generations

The author believes it is also important to consider how previous generations, such as generations baby boomers, who can still contribute. They have rich business experience and deep understanding of the industry. When this provision is combined with the technological understanding of the younger generation, it can create a strong synergy.

Therefore, it is not only about eliminating fear of technology, but also about combining the wisdom of the old generation with the innovation of the new generation to achieve MSME success in the digital era.

Finally, a holistic approach involving education, training and technical support may be a key solution to help MSMEs adapt and grow amidst rapid technological developments.