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There have been discussions about paying our house helps and our security guards. What about the neighbourhood pani puri seller though? Or the people who earn by selling jewellery and bedsheets on the footpath? Or that corporate employee who left their decent paying job and put all of their savings into a start-up?
This past year has undoubtedly tested all of us beyond measure. As soon as the pandemic struck India, there has been nothing but chaos all around. The virus outbreak has by far been one of the major threats to the Indian economy. Moreover, one of the significant sectors which belong to the small businesses of our country has had a severe economic impact.
Periwinkle, a clothing line that was launched in 2018 had shut down its production units due to lockdown. The employees working at these units went back to their hometowns away from the city. As production was at a halt so were the sales which meant no income- that’s where their downfall began.
The low-income self-employed has become one of the biggest victims of the pandemic. Devi, a Manipuri vendor operating in a popular marketplace has been selling handwoven shawls from four decades before the lockdown hit. The stack of unsold shawls reflects on her daily struggle to feed her family.
The state government said that they would provide 10,000 rupees in assistance to people like Devi. A scheme was launched which offered collateral-free loans of 10,000 rupees to about 5 million street vendors. On the other hand, businesses like Prewinkle are relying on schemes like ‘credit guarantee scheme’ which allows them to avail themselves collateral-free term loans or working capital loans.
Even the SBI covid-19 funding scheme which provides assistance to small businesses and GeM (government-e-marketplace) a platform for selling services and products to the government have both gained popularity.
Prime minister Narendra Modi's plan of self-reliance (aatma nirbhar) still remains a distant dream for the millions of Indian micro and small businesses which continue to struggle for survival as the economic crisis deepens. Nevertheless, the government is supporting this plan in full swing through low-cost credits and reduction on the dependency on imports.
Jayanagar Jaguars (JJ), is a fitness company focused on physical presence. Having conducted major marathons in the past, they never did any remote-based training despite their presence in 27 locations. Similarly, Bangalore Adventure School (BASCOOL) provides technical training for outdoor adventure activities relied on physical meetings even for their theory sessions.
JJ came up with a 'fit-from-home' programme. Whereas, BASCOOL considered how they could get people motivated to undertake safe adventures without having physical sessions.
Businesses are finding unique ways to connect with their customers. Technology has been a blessing at this time of social distancing, which could very well be the way of life for upcoming years. Digitization has been at the forefront leading to cost reduction and increased productivity.
Thus, it is important for small business owners to take the necessary steps to ensure that they are doing the best they can given the situation.
Maintaining a positive vision for the future with an optimistic mind might do wonders in distressing situations like these! So let us hope we strongly rise out of this pandemic and transform into a better world.