Online delivery, cross-border trade positively impacted MSMEs during COVID-19: PayPal survey

According to a survey conducted by digital payments company, PayPal, 52 percent of the Micro, Small and Medium Enterprises (MSMEs) in India witnessed a positive impact in the wake of the COVID-19 pandemic owing to factors such as more delivery options, better transaction options, increased cross-border trade, increased offerings, and more online customers.

The survey also stated that disruptions in the supply chains, logistics and decreased demand are responsible for causing a negative impact among small businesses.

Around 250 small and medium businesses participated in the survey, with the average turnover and employee strength of the SMBs are Rs 123 crore and 386 respectively.

Moreover, social media emerged to be the top online selling channel (according to 66 percent of the respondents) for these businesses but the intention to leverage own platforms such as own mobile applications (28 percent) and third-party ecommerce platforms are the highest (29 percent).

ALSO READ

MSME Minister Narayan Rane inaugurates MSME Pavilion virtually at World Expo 2020 Dubai

According to research firm India Brand Equity Foundation, India is home to about 6.3 crore micro, small and medium enterprises (MSMEs). They form the backbone of the Indian economy, contributing 48 percent to India’s exports, making them a major revenue generator for the country. MSMEs have shown resilience during the first two waves of COVID-19 and are now in the middle of combatting the third wave too.

The survey also reported that almost nine in 10 businesses have grown during the pandemic through cross-border trade. Additionally, 86 percent of the SMBs witnessed an increase in the CBT business during COVID-19 with an average growth of 40 percent.

To conclude, the MSME respondents also highlighted that high costs (74 percent), exchange related issues (31 percent), and frauds (30 percent) are responsible for impeding the growth of this sector.