The world after COVID-19 will be a challenging one for the world economy and the business sector. Considering the impact of demonetisation and GST, the future of the business scenario remains a big question. The continuous lockdowns have shattered the business world. This is a challenge that looms over the MSME sector.
The MSME segment is the most impacted by COVID. There are about 6.5 Cr MSMEs in India. Senior entrepreneurs say that the COVID era would be a golden opportunity for those entrepreneurs who quickly adapt to the new situation. The important point is to stay focused on the customer. They are the king. Always ensure to maintain healthy relationships with your customer. Identify their needs in the new situation and update your service or product accordingly. Another aspect is to be open to change. This is the time to convert a crisis into an opportunity. The current situation has opened a new avenue for MSMEs to expand their venture. The goal should be to develop with minimal capital investment.
Another factor to keep in mind is Financial fitness. Financial stability is of paramount importance to small and medium entrepreneurs. Staying away from customers for a long time might lead to huge losses. Prioritise productivity minimising other costs. Increase employee morale.
Try to make a profit by selling assets. COVID may cause at least a 10-12% loss to the revenue of corporates. Therefore, MSMEs associated with corporates may incur huge losses. So, it is important to remember that large-scale calculations are a necessary factor to consider now.
MSMEs can also make effective use of government programmes. The centre has announced a revival package of Rs 3 lakh crore. MSMEs can avail a four-year term and a first-year moratorium. Reviewing those plans and utilising them would help MSMEs overcome challenges.
No entrepreneur can move forward without the implementation of technology and digitalisation. The motto in the new era is to connect with your customers. Take your business forward with digitalisation. This will reduce costs and increase efficiency.
Adopt low-cost ways to influence the customer. Use free online services to deliver products and services to the customer.
Various consumer surveys indicate that ignorance about government schemes makes financial assistance inaccessible to many MSMEs. In the current economy where uncertainty prevails, lessons of survival must be followed. Entrepreneurs should try to turn the post-COVID era into a perfect opportunity to jump from the current slump to prosperity.
