Ease of Doing Business for MSMEs: Tencent-backed digital ledger app for MSMEs Khatabook on Wednesday reported an 11 per cent drop in enterprise activity amongst its MSME buyers through the second wave of the pandemic in comparison to 46 per cent last year. Khatabook, which analysed information of more than 80 lakh month-to-month active MSME buyers, mentioned the improvement in percentage decline of enterprise activity was due to the “phased and localized” restrictions across the nation post second wave in contrast to the nationwide lockdown last year.
“Based on platform insights from Khatabook’s over 80 lakh MSME userbase, MSMEs have experienced only an 11 per cent drop as per the median weekly business per merchant indicator across all business categories and regions due to phased lockdowns in 2021 during second Covid wave. This drop was close to 46 per cent in the 2020 national lockdown. Overall, MSMEs seem to be better prepared for Pandemic reality in 2021,” Ravish Naresh, Co-founder and CEO, Khatabook told TheSpuzz Online.
Throughout the pandemic, Khatabook’s buyers across all the tiers skilled more or significantly less the exact same influence although Tier I and Tier II cities have been fairly significantly less impacted through the second wave as compared to metros, Tier III, and Tier IV cities, the corporation noted in a statement. Among the most impacted enterprise categories have been textile/apparel, footwear, automobiles, traders, meals, and personal computer accessories and services this year as effectively although overall health, grocery, transportation, and agriculture categories continued to develop in 2021 amid the second wave.
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Multiple surveys, research, evaluation have been carried out due to the fact last year by associations, trade bodies, and enterprises to gauge the overall performance of the MSME sector and to recommend measures to accelerate their recovery. While the government and the Reserve Bank of India have undertaken various measures to cushion Covid distress, the help had seemingly fallen brief to assist revive MSMEs, a current survey by the Consortium of Indian Associations had indicated.
73 per cent of SMEs, as per the survey of more than 81,000 self-employed people and SMEs in India published last month, couldn’t make a profit through FY21 although only 13 per cent broke even amid Covid influence. The CIA survey had also noted that 80 per cent entrepreneurs have been insecure “about their future, with the double whammy of the pandemic crisis & economic implosion coupled with the lack of any support base.”
According to a Parliamentary panel report on Covid influence on MSMEs last month tabled in the Rajya Sabha, the stimulus package announced by the government last year for the financial revival post-Covid, was “found to be inadequate as the measures adopted were more of loan offering and long-term measures instead of improving the cash flow to generate demand as immediate relief.”. The report had noted that in the approach of financial recovery post-initial wave of the pandemic, the second wave even more vigorously ripped the economy specifically the MSME Sector.