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79% OF MICRO AND SMALL BUSINESSES HIT BY COVID-19: KANTAR REPORT

BY TEAM IMPACT

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Data and insights company Kantar has launched a report on the impact that COVID-19 has had on micro and small businesses (MSEs) across the country. The study reveals that a good 79% of the MSEs are impacted by the COVID-19 crisis so far in India and that the restriction on movements, low demand from customers and financial woes are all leading to a high level of customer-oriented challenges. The first of the three-wave study reveals the economic outlook of the MSEs, challenges that threaten their existence and the opportunities that they seek to remain relevant in the current times.

 

Below are some of the key findings from the report:

  • 79% of the MSEs are negatively impacted by the Covid-19 crisis.
  • Only 24% MSEs are operational now, of which 18% are operating at less than 50% capacity.
  • Restricted movements, low demand from customers, financial and workforce woes are leading to high level of customer-oriented challenges.

Some of the specific business areas that are impacted include:

  • 7 out of 10 businesses have witnessed significant decline in customer footfalls.
  • 5 out of 10 businesses will run out of working capital in two months, and will depend on loans from peers or family to survive
  • 7 out of 10 manufacturing businesses will not be able to procure raw material for the next month
  • 6 out of 10 businesses are uncertain about their business financial health for next two weeks
  • The BFSI and education sectors are the two that are experiencing higher workforce contributions

The survey also notes that despite the overall low sentiments, at least 55% businesses are exploring opportunities to better their businesses in the current scenario. Around 35% are turning to leverage digital solutions and technology in their business models, digital sales channels, products, solutions, etc.

The Kantar report surveyed 420 players in 12 cities across manufacturing, BFSI, IT, ITES, travel, transport, retail, education and related areas.

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Tags : IMPACT COVID-19 survey Kantar