Impact of COVID-19 in MSMEs sector

The lockdown hauled MSME owners, employers, and stakeholders in startling times, where no one was familiar to handle this sort of circumstance. Lockdown because of the pandemic had negative impact on supply of finished goods, availability of raw material and employees, and supply functions. MSMEs faced challenges associated with obligation reimbursements, wages, statutory dues, etc.

Survey reports have shown that disturbance caused by the Covid-19 has affected MSMEs revenue by 20-50%. Micro and small enterprises faced maximum turmoil because of the liquidity crunch. Enterprises working in necessary commodity business were marginally better in hindered but predictable income. MSMEs located in remote areas also faced heaps of problems

Even consumers had low disposable income. Several enterprises laid-off their employees due to inability to pay salaries, emptied their offices due to expenses incurred, and reduced their production due to halted demand. Obscurity in future trade and bounce back of new normal is protecting financial institutions at bay for boosting financial lending or cover potential risk. A push was required from the government as well as on its own to stimulate market activities and bring back regular cash flow in the economy. 

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