Mumbai, April 27 2020: Leading data, insights and consulting company, Kantar, has launched a report on the impact of COVID-19 on the Micro and Small businesses in India.
The study reveals the economic outlook of the MSEs, challenges that threaten their existence and the opportunities that they seek to remain relevant in the current times. Key findings from the report:
Overall COVID-19 impact on business
- 79% of the MSEs are negatively impacted by COVID-19 crisis
- Only 24% MSEs are operational now, of which 18% are operating at less than 50% capacity
- Restricted movements, low demand from customers, financial and workforce woes are leading to high level of Customer-oriented challenges
Key business areas impacted
- 7 out of 10 businesses have witnessed significant decline in customer footfalls/enquiries
- 5 out of 10 businesses would run out of their working capital within two months- they will depend on loans from peers/friends/family to survive
- 7 out of 10 Manufacturing businesses are unlikely to procure raw materials for the next one month
- 6 out of 10 businesses are uncertain about their business financial health for next two weeks- 9 out 100 businesses are expected to lose 100% of their revenue during the next two weeks
- Only 2 out of 10 businesses have more than 10% contributing workforce- BFSI and Education sectors majorly experiencing higher workforce contribution
Despite the overall low sentiments, at least 55% businesses are looking at leveraging opportunities to better their businesses in the current scenario.
35% are turning to leverage Technology and digital solutions. These include rehashing their business models, adopting digital channel for sales and customer communication strategies, adopting technology products and solutions, etc.
The report surveyed 420 players in 12 cities across Manufacturing, BFSI, IT/ ITES/ Telecom, Travel, Transport, Logistics, Retail and Outlets, Education and related areas, and Other professional services sectors.