Dun & Bradstreet: Over 82% of SMEs had negative impact during Covid-19

MUMBAI: Dun & Bradstreet launched a survey on the “Impact of Covid-19 on Small Businesses in India and the Way Ahead”. This survey covers responses from over 250 small companies (50% every in manufacturing and companies sectors) with annual income between Rs 100 crore and Rs 300 crores throughout seven main cities in India.

According to the survey, over 82% of companies have skilled a negative impact, and 70% imagine it is going to take them virtually a yr to get better demand ranges previous to COVID-19. Around 60% of firms surveyed anticipate extra measures and assist, together with authorities initiatives. The survey provides that three topmost challenges that may hinder small companies to scale up their companies are market entry(42%), enhancing the overall productivity (37%) and getting access to extra finance (34%).

The granular agency degree knowledge captured by the Dun & Bradstreet Commercial Disruption Tracker indicated that round 95% of corporations have been impacted in April 2020 when the nationwide lockdown was imposed. Even with progressive unlocking, 70% of companies remained disrupted until August 2020 and 40% until finish of February 2021.

The small enterprise homeowners cited the three measures that they should revive their companies submit the pandemic are higher credit score facility (59%), higher advertising assist (48%) and adoption of know-how (35%). The pandemic has exacerbated some of these points and made scaling up firm actions much more troublesome. Given the depth and length of pandemic’s devastation, these threats are more likely to persist within the close to future as nicely. “The charge of restoration of India’s industrial enterprises, and thereby the financial system, will probably be decided by the power of the restoration of small enterprise” stated Arun Singh, Global Chief Economist, Dun & Bradstreet, in a press release.

In a press release, Avinash Gupta, Managing Director, Dun & Bradstreet India stated “The pandemic has increased the pace of digitization across sectors and businesses have reaped advantages like cost reduction and increased productivity. Globally, digital adoption has accelerated by seven years due to the COVID-19 crisis. Our survey points out that 82% of surveyed small businesses have digitized their daily operations during this pandemic, which helped them in Reduction in cost (54%) and enhancing competitiveness (51%). Adapting digitization is extremely critical to manage the havoc the pandemic has caused on supply chains and to solve various logistics and supply chain issues going forward”.

Key findings from the survey

1. Challenges That Small Businesses Will Face And Support Measures They Need To Revive

  • The three high challenges that may impede them to scale up their companies: Market Access (42%), Improving the Overall Productivity (37%) and Having Access to More Finance (34%)
  • Three most vital assist measures which are wanted to revive their companies: Better Credit Facility (59%), Better Marketing Support (48%) and Adoption of Technology (35%)

2. Better Credit Score

  • Emphasis on Credit Score is the important thing problem for accessing credit score as said by 35% of the respondents and collateral necessities cited by 32%
  • Around 50% of the respondents imagine {that a} credit score rating by a third get together on their credit score worthiness and capabilities will profit them

3. Market Intelligence And Market Entry Support

  • More than 40% of surveyed Small Businesses use some kind of market intelligence gross sales instruments. Also, greater than 50% of Small Businesses who don’t use any market intelligence gross sales instruments, have plans to make use of it sooner or later
  • More than 40% amongst Small Businesses who use some kind of market intelligence gross sales instruments are cited to have taken assist from third get together to attach with world prospects

4. Role Of Digitization – During And Post Pandemic

  • 82% of surveyed Small Businesses digitized their each day operations during this pandemic
  • Reduction in Cost (54%), Enhancing Competitiveness (51%) and Better Understanding of Customer Behaviour (45%) are the foremost advantages derived by digitization
  • Leveraging on digitization, Small Businesses will be capable to handle their key conventional issues confronted over time i.e. More Focus on Customer Base (62%), Data safety (43%), Evolution of Products and Services (40%)

5. Future Plans Of Small Businesses Regarding Adoption Of Next-Gen Technologies

  • 66% of the respondents are planning to leverage Next Generation Technologies like Artificial Intelligence (AI), Machine Learning (ML) and Industrial Internet of Things (IoT) for his or her enterprise operation

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *