According to the Road to Recovery report, more than 50% of micro-enterprises lacked mechanisms to cope with the impact of Covid

• The survey among MSMEs during and after the lockdown period takes a closer look at the major problems faced by entrepreneurs.
• This survey shows that only 31 percent of those surveyed were aware of programs launched under the ‘Atmanirbhar Bharat’ initiative.
• The survey was conducted in 2020 and 2021 in two rounds, each of 1955 micro-enterprises.

A study of the impact of Covid-19 on micro-enterprises in India found that nearly 40 percent of them were denied loans (both formally and informally) because they lacked sufficient collateral or did not have a positive credit history. According to non-profit organizationGlobal Alliance for Mass Entrepreneurship(GAME), which conducted the survey, 21 percent of micro-enterprises lacked the required documentation for the application.

The report, entitled ‘Road to Recovery: Exploring the impact of Covid-19 on micro-enterprises in India,” recently released, is a nationwide study on how India’s SME (micro, small and medium-sized enterprises) sector has weathered the lockdowns during the pandemic, according to GAME.

The survey conducted among MSMEs during and after the lockdown period takes a closer look at the major issues entrepreneurs face in relation to financial impact, business confidence and stress management, it said.

The survey, conducted in 2020 and 2021 in two rounds each of 1,955 micro-enterprises, found that more than 50 percent of companies reported having no coping strategies or mechanisms in place to deal with the impact of the pandemic, GAME said. in a statement.

GAME founder, Ravi Venkatesan said there is a great need to build sufficient knowledge of bank managers, field officials and bank correspondents about banking and government regulations.

This survey shows that only 31 percent of those surveyed were aware of schemes launched under the ‘Atmanirbhar Bharat’ initiative, he said.

“As part of the package, financial institutions introduced a credit product for MSMEs whose loan accounts were categorized as Special Listing Accounts by credit institutions. While this was created to support MSMEs unable to repay loans, financial solutions can be created in the same way to encourage business adaptations in response to external challenges,” said Venkatesan.

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