Impact of COVID on SME in India

By Panchami G

Does SMEs have the capacity to survive Covid pandemic?

What is the main solution for an SME to strive in this scenario?

Covid-19 and the succeeding lock-down created a jolt to millions of small-scale businesses in the country. Without adequate financial and labour assistance, the circumstances of small-scale businesses are turning out grey. They are one of the most vulnerable sectors of the society due to their small size, limited scale of operation and limited financial resources. Normal times itself demand struggles to survive whereas are they prepared to survive this economic crisis which is totally unexpected?

“Of our 86,000 members in the India SME forum, 24,000 members are micro units. Almost 80% of them are going to be in deep trouble and will look at closing down if no funding comes in from the center or states”, states Vinod Kumar from India’s SME forum. Unless the SME sector is strengthened Indian economy is going to suffer.

It’s time to look out for a solution to this important sector of the economy.

The best and easy solution to this is to walk the path of Digitization. Businesses has to look out for Digital solutions to enrich the business strategies. Digital technologies will not only help the small-scale businesses to survive but also to thrive in this era of pandemic. Digital technologies can be used in various fields like supply chain management, employee engagement, working capital management and most importantly in marketing as well.

Retail sector and most of the consumer product industries will have to adopt digital marketing strategies so as to reach out to their potential market. It also important to analyze the demographic, geographic and many other factors that influences your customer behavior. Therefore, Digital Marketing has got huge potential due to the lock down that is forced upon the entire world.

SMEs can employ Digital Marketers who can in-turn bring potential revenue to the business in this lock-down period. It is a huge opportunity for SMEs to grow not only within the country but beyond the geographical boundaries as well. Reforms in digitization will bring a lot of benefits to the firm and the industry that it belongs to. We all know that SMEs are one of the important pillars of Indian economy. Therefore, as consumers we should acknowledge the efforts of SMEs digital presence as they are growing.

Contact Digital Marketing Certification professionals and get expert advice from Media Mavens.