The global pandemic has taught us one thing – every sector, every business is vulnerable and that no one is indispensable. One of the hardest hit sectors is undoubtedly the Micro Small and Medium Enterprises (MSMEs). MSMEs have been the greatest drivers of the Indian economy.

In 2019, it contributed to around 29 % of the total gross domestic product (GDP). COVID-19 changed the game and shoved MSMEs into uncharted waters and debt cycles. With the pandemic cases coming down drastically and the markets being fully opened, the MSME sector is striving to make a comeback and the picture looks bright at the moment. Also, thanks to the government for taking the right steps to lift the sector through its Rs. 3 lakh package as credit guarantee to financial institutions. Yet, a lot needs to be done for MSMEs that have their presence in rural as well as urban areas.

Besides, promoting MSMEs through various programmes and forums, it is necessary to work at the ground level to help them overcome challenges. Poor infrastructure, inadequate and timely access to finance is among the top hurdles in this sector. This was the scenario even before the pandemic. Moreover, most of the MSMEs have low technological expertise, improper access to the market, lack of quality human resource and less skill development trainings.

Now, MSMEs need to pull up their socks and address these issues first. They need to be more organized.

 Ray of Hope

The government of India came up with some solutions to revive the stuttering MSME sector. Some of these include repo-rate reduction, emergency credit line guarantee scheme, PF and EPF support, and e-market linkages. Surveys have shown that nearly 50% of the MSMEs are picking up well and are confident of recovering the lost period.

Some Solutions for Quick Recovery

Now, with the global health situation and markets back to normal, and with the governments schemes, MSMEs need to quickly grab opportunities. They should make the most of the governments initiatives. Second most important thing for MSMEs is to adapt to the latest technologies and go digital.

The brighter side is that many MSMEs have realized the need and demand of the time and have started adopting the changes. Many private organizations are also supporting the governments initiatives by encouraging MSMEs and felicitating them, like Global India Business Forum (GIBF). The no-profit organization recognizes the efforts of entrepreneurs and awards them through governors, central ministers and ambassadors of different countries.

The future at present looks bright for MSMEs.