Impact of COVID-19 on small businesses
A vital pillar of the Indian economy, the MSME sector has developed into one of the fastest-growing industries in the Indian industry. MSMEs are the Indian business backbone and are annex to major industries. Their significant contributions to job creation are the intensive labour and economic enhancement of backward regions and play a crucial role in their socio-economic development. They spread through the economy and foster inclusive country industrialization. About 6.33 crore MSMEs in the country and some 11.10 crore employees employed in the country are for non-agricultural jobs. Indeed, any work created in the MSME or manufacturing sector has the effect of creating a further 2–3 jobs. MSME has made significant contributions to the country’s exports and economic growth despite the difficulties. Over the past five decades has been one of the main drivers of the Indian economy. But due to current scenario impact of COVID-19 Pandemic on small businesses has hit hard on them.
In the past six-year period of July September 2019, India’s economy has experienced a low growth rate of 4.5%. This slower rate was reawakened by the chaos of the two successive policy shocks, first with the demonetization of 86 percent of the currency and then implementing the latest overhaul of the tax on goods and services. The structural shifts in the economy has boost liquidity in the economy short to medium-term, with the hardest affected being cash-orient MSMEs. This liquidity crisis also led to changes in the structural makeup of the economy as many small and medium-sized firms were unable to withstand the confusing demand situation of the economy.
Impact of COVID-19 with declining Economy on MSMEs
With a decline in the economy, the unparalleled lockout has caused economic disarray. When a nation locks down in reaction to a pandemic, demand and supply are severely constrain in sealed towns with no jobs and income, stranded millions of migrant workers. With global activity standing idle, millions of livelihoods and companies are involved. The international and domestic supply chains have collapsed entirely. There has been no moving raw material and finished products because the national and state boundaries have closed sharply. There is also a shock to demand in the economy since investment is limited to essential spending. Both MSMEs and larger firms will have a shocking effect on Covid 19, but the influence on vulnerable MSMEs will be more evident.
The road ahead for MSMEs
The impact of COVID-19 Pandemic on small businesses has widespread consequences and are evolving further. Given the overwhelming destruction of the virus, must overcome the pandemic upheaval and its repercussions. MSMEs must grasp the nettle of the crisis of Covid 19 and devise appropriate methods to deal with its consequences. The MSMEs will survive, withstand, pursue or discontinue this current situation based on their management skills, leadership qualities, and financial fitness.
MSMEs should take steps to incorporate Covid 19 processes into the existing one to lay the groundwork for a new. With this they have to provide safe working culture Sanitary.
1) Approaching or series to each other to avoid handling the content should be the arrangement of activities.
2) Design layouts in such a way to allow the material’s easy flow to suppliers and customers.
3) Allow the number of persons involved in a particular activity, such as assembly, inspection, packaging, and workstations.
4) Recast the handling process of a commodity.
So it’s time now to change the market model and thought habits. This can be achieve by by turning panic into pragmatic and efficient work with the help of Fyndhere. Fyndhere is a digital platform that is working toward building a virtual marketplace. It allows small firms to connect with their prospective customers to grow their customer base and also allows them to connect to other vendors that can be their future partners. Download the app now.