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Last Updated : Aug 09, 2020 07:40 PM IST | Source: PTI

81% micro enterprises confident of recovery post COVID-19: Survey

Initial results of a six-month survey that is underway by GAME (Global Alliance for Mass Entrepreneurship) in association with LEAD at Krea University covering 1,500 micro enterprises also reveal that 40 percent tried to borrow money to cover expenses.

PTI
Representative image
Representative image

Despite several businesses remaining closed during the lockdown, 81 percent of micro enterprises polled are confident of a recovery post COVID-19 whereas 57 percent reported not having any cash reserves to survive, according to a survey.

Initial results of a six-month survey that is underway by GAME (Global Alliance for Mass Entrepreneurship) in association with LEAD at Krea University covering 1,500 micro enterprises also reveal that 40 percent tried to borrow money to cover expenses.

However, only 14 percent of the overall borrowing was from formal borrowing sources.

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As per the revised criteria, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore is classified as a "micro" enterprise.

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Madan Padaki, co-founder of GAME, said COVID-19 has left a devastating impact on the Indian economy, especially micro-enterprises that comprise around 99 percent of all firms in India.

"Through this longitudinal survey, we intend to truly understand the on-ground situation and challenges faced by microenterprises in managing cash flows, dealing with broken supply chains and delayed payments. By keeping our ears to the ground, we want to provide specific recommendations to all ecosystem actors to accelerate the recovery of these enterprises," Padaki said.

The survey also revealed that across all respondents, female business owners faced more household challenges than men.

In fact, 70 percent female business owners suggested inter house conflicts as the biggest challenge while 53 percent men responded to the same. Women also faced more unaffordable expenses than men, with 46 percent suggesting the same, the survey said.

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First Published on Aug 9, 2020 07:31 pm
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