International MSME Day 2020 is more of a sombre occasion requiring introspection instead of celebration. The pandemic has thrown the world economy into chaos and small businesses are facing the brunt of this economic shock.
The pandemic-led crisis is here to stay. Hence, it is imperative that MSMEs look for opportunity; the present situation demands prioritisation of survival over growth, besides being able to meet the immediate challenges of statutory dues, wages and pressing creditors.
Global not-for-profit Wadhwani Foundation has put out an advisory to MSMEs struggling to sustain and survive due to the ongoing crisis on the eve of International MSME Day (June 27).
Ajay Kela, President and CEO, Wadhwani Foundation, said the single biggest challenge for MSMEs is in getting access to funds and being able to pay for quality business consulting services.
“While fresh capital will always be welcome, uncertainty around growth will challenge them on issues such as capacity utilisation, investment in new business development, talent retention, sinking employee motivation and morale.
“SMEs will need to reorganise priorities – survival over stability to explode and emerge stronger. In these unpredictable times, MSMEs with resilience and adaptive measures will effectively be able to tackle vulnerabilities such as financial stress, low demand, dispersed workforce, and a downbeat export market to survive and thrive,” he said.
MSMEs have the capacity to bounce back in playing a pivotal role to achieving India’s dream of a $5-trillion economy by 2025. They are the backbone of the economy, he added.