So many businesses and industries have been affecting due to this pandemic. Large companies still have the money and resources to produce goods and buy materials whereas small, micro and medium businesses aren’t being supported at all and have been hit hard by this recession and lockdown measure have restricted people from visiting these stores and put them on the edge of survival.
MSME’s play a big role in our economy and the only way of supporting them to help our economy grow is by asking people to avoid giving their money to large businesses and start supporting the smaller ones. Many owners have invested their own money into their business, workers and communities in these times of struggle. The United Nations Industrial Development Organization (UNIDO) demands to governments, buyers and consumers and other stakeholders to line up behind MSMEs to help them to build back their business from disaster.
In India alone, MSME’s provide about 12 crore jobs for the population. If people don’t buy from them and they don’t have money to pay the workforce they’ll have to let go of everyone increasing the unemployment rate that does not benefit us, the business, the government or the economy.
MSMEs have been heavily impacted by the COVID-19 crisis, with different surveys indicating that approximately 1/3rd of MSMEs expects to close within 3 months leading to loss of employment and incomes for crores of workers. Most MSMEs need cash resources to restock working capital to restart a business. Any cash investment in these businesses will be short-lived, and undeniably markets and consumer demand need to be rebuilt urgently to restart the economy.
Undoubtedly, MSMEs deserved honours as key contributors to the economy, trade, and income and employment generation. Overall, MSMEs though were underperforming regarding productivity and quality, energy and environment, health and safety and conditions of work. This is a reason they are very important to our economy and funding them with even some money could have a big effect on our economy and may even increase economic growth.
Writer: Anaya Parekh
28/06/2020
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