From MSMEs surviving the third wave to their expectations from Union Budget 2022, here’s what SMBStory covered this week
This week, SMBStory spoke to various MSMEs and institutions to understand how they are coping with the third wave and also their expectations from the upcoming Union Budget 2022.
The upliftment of micro, small, and medium enterprises (MSMEs) is crucial for the growth of the Indian economy. Considered as the backbone of the economy, the sector contributes nearly 30 percent to the country’s GDP.
With Union Budget 2022 just around the corner ready to be put forward in a few days, it is important to consider the views of MSMEs, and their condition and expectations from the budget.
Third wave: How are MSMEs faring?
The threat of the third wave of the coronavirus pandemic had been looming for a long time. However, with the number of people getting vaccinated only rising month-on-month, there was still hope that a third wave would not necessarily land.
Nevertheless, almost eight months after the draconian second wave hit us in May 2021, the third wave has now come knocking, this time with a new variant, Omicron, termed as a ‘variant of concern’ by the World Health Organisation (WHO), and also deemed to be highly transmissible by health experts. What’s more, individuals who have been vaccinated with both the doses are also getting infected.
India’s Omicron tally, as of January 16, stands at 7,743 cases whereas the overall cases stand at over 2.71 lakh.
India’s micro, small, and medium enterprises (MSME) industry has shown resilience during the first two waves, and in this article, we explore if surviving the first two waves has made a difference at all in helping the industry cope with a third wave.
Here is what MSMEs expect from Union Budget 2022
“Abhi toh market uth rahi thi, ye teesri leher ne phir se mann mein darr baitha diya, (The market was getting back into shape but this third wave has again made us scared),” Neeraj Mishra, a small business entrepreneur from Kanpur, Uttar Pradesh who runs a fabric store tells SMBStory.
The third wave of COVID-19 has added to the misery of the MSME (micro small and medium enterprise) sector, which was trying to recover from the setback caused due to the first two waves of the pandemic in 2020 and 2021.
“Had I been commenting about 20 days back, probably my comments would be more towards how the government should rebuild and focus on reducing the budget deficits. However in the 20 days gone by, we know exactly how uncertain things are with the new wave hitting India like a tsunami. The government should do well. I hope that they will be able to make adjustments to their planning (as the budget document to my knowledge would almost be ready),” says Ratish Pandey, Business and Executive Coach, Ethique Advisory.
Neeraj says that given his business health right now, he is in dire need of money to buy more inventory for running his shop. He also needs funds to make payments to his vendors and pay the shop rent. Curfews and declining customer footfall, he says, are adding to his problems.
The upheaval that the COVID-19 pandemic created in the business environment has seen MSMEs struggling to stay afloat, says Ratish. Each new wave, he says, is worsening the situation.
Ahead of the Union Budget 2022, SMBStory tried to find what small business owners expect from the budget. Here is what we found:
Other top picks of the week:
Silly
Popular American talk show host Oprah Winfrey once said that the “biggest adventure you can ever take is to live the life of your dreams”. The quote fits well for Karan Nohria who, since his teenage years, dreamt of opening a restaurant that would make people feel comfortable being themselves.
“Each one of us has a silly side but we, however, conceal that within when going to any fancy place for dining. I wanted to open a place where people could be who they are and not worry about dressing up or anything else. That’s what inspired me to start Silly — a fuss free, easy going space,” Karan tells SMBStory.
Twenty-one-year old Karan started Silly in March 2021 in the Khar area of Mumbai. He says that despite the COVID-19 restrictions, the place has been running well.
“We have been able to recover 45 percent of our investment and are expecting to reach break-even in the next six to eight months,” Karan claims, adding that the plan next is to expand beyond Mumbai.
Silly has been witnessing customer footfalls in spite of restrictions, a success Karan attributes to the company following all norms and checks in place without compromising on the offerings to the customers.
Edited by Kanishk Singh
