The effects of COVID-19 were on all the sectors but it dreadfully impacted the small business and entrepreneurs. The widespread closing of stores and businesses in India and around the world due to the coronavirus is unprecedented. Stores, factories, and many other businesses have closed by policy mandate, downward demand shifts, health concerns, or other factors. Many of these closures may be permanent because of the inability of owners to pay ongoing expenses and survive the shutdown. The impact on small businesses around the world is severe.
The survey, conducted by data firm Dun & Bradstreet has shown 82 per cent of businesses have experienced a negative impact during pandemic year. The survey was conducted among over 250 companies, evenly split between the manufacturing and services industries, having a turnover of Rs 100-250 crore yearly.
Over two-thirds, or 70 per cent, said it will take them nearly a year to recover demand levels prior to Covid-19. Over the past year, India has emerged to be one of the worst-affected nations globally by the Covid-19 pandemic. The resultant lockdowns, which are springing up again across the country with rise in cases, have an impact on the economic front as demand disappears along with a dip in income generation.
Post-Covid, the majority of small businesses have been looking to sell themselves due to issues such as health issues, lockdown-related challenges, working capital issues, etc. Even as small businesses were hit hardest due to Covid, which reportedly led to the closure or temporary shutdown of some of these units, there is no official data on the number of such shutdowns.
Micro and small enterprises are looking to sell themselves, the scenario at the ecosystem level seems to be moving towards recovery. However, beauty & wellness, which included salons, apparel, footwear and jewellery were yet to catch up to the pre-pandemic levels of sale.
The Government realizes the difficulties faced by the business owners and start-ups to establish and run them. To ease the burden and encourage new business setup and startups, the Government has launched various schemes for business. The Union Government of India has launched schemes specifically for helping the business in India.
While it was difficult for smalll business to survive, as the consumers remained home to stop spread of virus, many had to go creative to run their business. Although many failed, others survived using their innovative operation plans .