The pandemic was a big blow for SMEs, not just in India but around the world. Over 40% of emerging businesses in India were adversely affected and 15% discontinued operations. However, with challenges come opportunity and the environment in India, despite massive challenges, is ripe for SMEs.
Innovation is Imperative
One of the benefits of the pandemic is that businesses have understood that nothing can be taken for granted. They are being forced to innovate and this will result in only the best surviving, making for better goods and services for consumers as the pandemic abates. There is also a bigger drive than ever before to reduce waste and make the most of whatever resources are available, which is excellent for long-term sustainability.
Working Together
Indian SMEs are also realizing that micromanaging workers is not the way forward. Instead, people need to be provided with guidance and the room to excel and do things to the best of their abilities. This requires collaboration, which is something that India’s SMEs need now more than ever. The days of office politics and favoritism must go, in favor of a new meritocracy. The pandemic has created conditions ripe for this, as employers will now be looking to hire only the best people, who can function relatively autonomously.
Looking Towards New Opportunity
While the growth momentum of SMEs has been impacted by the pandemic, new opportunities are emerging and businesses are ready and willing to pursue these. This is clearly demonstrated by a recent survey of India’s major business centers, in which a whopping 69% of SME respondents said they are looking to expand in the future.
Digitalization
The pandemic has provided those with digitalized business models an edge, and forced much of the rest to adopt digital technology or perish. This is a huge step forward in terms of efficiency and productivity. Respondents in the aforementioned study also indicated that the impact of the pandemic on SMEs was relatively low, lasting on average 3 to 6 months. 40.5% of SMEs were able to recover within this timeframe.
Lower Cost of Borrowing
26% of the respondents expressed the intention to lease out new warehousing facilities, while 71% believed that commercial leasing rates would reduce, with the majority, about 48%, expecting a reduction of less than 10%.
All these factors together mean that there is plenty of opportunities, amidst rising challenges. But if India’s SMEs have proven anything over time, it is that they are resilient and fuelled by passionate people who simply never give up!
