Industry body, PHD Chamber of Commerce and Industry (PHDCCI), has conducted an industry survey of 2,770 business firms which depicts some major concerns prevailing in the MSMEs quarters due to Covid-19 led disruption. And in the top three list, concern over salary payment appears as a major challenge. The survey was conducted by PHDCCI in the months of April- May 2020 to know the preparedness of the business firms to face post lockdown challenges and post lockdown business plans of the industry across the micro, small, medium and large enterprises across the sectors.
The survey report prepared by PHD Chamber has been submitted to PMO, Ministry of Finance, Ministry of Commerce, Ministry of MSMEs, among others.
According to the survey, the top ten challenges for businesses in the post lockdown business scenario include
· 61% of the respondents said maintaining price-cost margins/profitability
· 60% opined Payment of wages/salaries to employees
· 58% said availability of working capital
· 53% stated repayment of loans/payment of EMIs
· 52% said high costs of capital
· 51% respondents said availability of finances/loans
· 51% opined costs of social distancing
· 51% said weakening of demand
· 50% stated compliances of labour laws
· 49% said retaining of the full workforce
Sanjay Aggarwal, Senior Vice President, PHD Chamber said that Government should support the small businesses that are facing the issues of paying salaries to employees and subdued demand environment amid pandemic COVID-19. He suggested to increase public spending/investments, focus on building health and educational infrastructure along with buying technologies and not products from the foreign countries.
Pix courtesy: Ludomil Sawicki on unsplash (representational image used)