Access To Funds A Major Challenge For MSMEs
Money & Banking
International MSME Day 2020 is more of a sombre occasion requiring introspection instead of celebration. The pandemic has thrown the world economy into chaos and small businesses are facing the brunt of this economic shock.
The pandemic-led crisis is here to stay. Hence, it is imperative that MSMEs look for opportunity; the present situation demands prioritisation of survival over growth, besides being able to meet the immediate challenges of statutory dues, wages and pressing creditors.
Global not-for-profit Wadhwani Foundation has put out an advisory to MSMEs struggling to sustain and survive due to the ongoing crisis on the eve of International MSME Day (June 27).
Ajay Kela, President and CEO, Wadhwani Foundation, said the single biggest challenge for MSMEs is in getting access to funds and being able to pay for quality business consulting services.
“While fresh capital will always be welcome, uncertainty around growth will challenge them on issues such as capacity utilisation, investment in new business development, talent retention, sinking employee motivation and morale.
“SMEs will need to reorganise priorities – survival over stability to explode and emerge stronger. In these unpredictable times, MSMEs with resilience and adaptive measures will effectively be able to tackle vulnerabilities such as financial stress, low demand, dispersed workforce, and a downbeat export marketto survive and thrive,” he said.
MSMEs have the capacity to bounce back in playing a pivotal role to achieving India’s dream of a $5-trillion economy by 2025.They are the backbone of the economy, he added.
Published on
June 26, 2020
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International MSME Day 2020 is more of a sombre occasion requiring introspection instead of celebration. The pandemic has thrown the world economy into chaos and small businesses are facing the brunt of this economic shock.
The pandemic-led crisis is here to stay. Hence, it is imperative that MSMEs look for opportunity; the present situation demands prioritisation of survival over growth, besides being able to meet the immediate challenges of statutory dues, wages and pressing creditors.
Global not-for-profit Wadhwani Foundation has put out an advisory to MSMEs struggling to sustain and survive due to the ongoing crisis on the eve of International MSME Day (June 27).
Ajay Kela, President and CEO, Wadhwani Foundation, said the single biggest challenge for MSMEs is in getting access to funds and being able to pay for quality business consulting services.
“While fresh capital will always be welcome, uncertainty around growth will challenge them on issues such as capacity utilisation, investment in new business development, talent retention, sinking employee motivation and morale.
“SMEs will need to reorganise priorities – survival over stability to explode and emerge stronger. In these unpredictable times, MSMEs with resilience and adaptive measures will effectively be able to tackle vulnerabilities such as financial stress, low demand, dispersed workforce, and a downbeat export marketto survive and thrive,” he said.
MSMEs have the capacity to bounce back in playing a pivotal role to achieving India’s dream of a $5-trillion economy by 2025.They are the backbone of the economy, he added.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
Support Quality Journalism
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