Despite the fact that demand has been steady since the epidemic, the economic situation for MSMEs has not yet stabilized. According to a poll conducted by Bhartiya Yuva Shakti Trust (BYST), an NGO that teaches young people entrepreneurship, over 57% of business owners expressed fear about receiving fresh orders for their goods or services.
5,685 micro-enterprises from states including Haryana, Rajasthan, Uttrakhand, Odisha, Jharkhand, Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Assam, and New Delhi were included in the study conducted in October 2022.
Another recurring problem that was brought up in the study was the shortage of operating capital. 27 percent of business owners reported that it is difficult for them to pay their loan installments on time. Nine percent of the respondents expressed concern about the rising cost of manufacturing, while another 20% of the respondents claimed they had trouble securing raw materials for production.
According to the survey, the average investment of these enterprises is roughly Rs 6 lakh, underscoring their small capital size and susceptibility to outside influences like a downturn in demand.
According to Lakshmi Venkataraman Venkatesan, founding and managing trustee of Bhartiya Yuva Shakti Trust, “Lessening consumer purchasing power leads to reduced demand and increased raw material cost due to higher transportation cost with increase in fuel prices have been cited among key problems faced by entrepreneurs during the last 27 months.
The study also showed that 14% of the questioned women company owners found it challenging to run their enterprises. Out of these, 26% of the women said that delayed payments were a deterrent, and 72% of the women said that promoting their items was difficult.
“Women entrepreneurs require particular coaching and skill development. Their incapacity to travel at odd hours, visit other places, and lack of proficiency with digital marketing tools limit their potential to build their businesses, according to Venkatesan.