Covid-19 and it’s impact on small scale industries

The covid-19 pandemic has hit the world big time. This pandemic has already completed close to two years of it’s existence and has caused negative impacts on all types of industries, but it has hit hard on the small scale industries the most. India’s export business is largely based on the export of the Indian small scale industries products. About 80% of the small scale industries have been suffering from this pandemic and about 70% expect it to be recovered within a year and get back to pre pandemic levels. This pandemic has made these small scale industries rely on the government’s support in-order to kick-start from where they left or to even start off fresh.These small scale industries also have a big challenge ahead, to target customer audience, to expand and have market access, having accessibility to finance amongst others. This pandemic has also brought about new challenges with respect to credit granting facility, having the support of the market, ie customers and a need for technological advancements in-order to cope with the challenges. This pandemic has made the adaptibility getting postponed because of the various other health facility challenges as well as boosting the economy challenges faced by the government, it’s their priority right now.

There are certain ways in which the government and other private agencies can tackle these challenges and boost the trust of the small scale industries on the government and the economy. These are my views on how the government can tackle these:

  1. Focus on the financial system of these small scale industries and allocate enough funds in-order to boost these industries in creating products and services and delighting customers.
  2. Bridging the gap between customers and producers and considering all the value chain activities with the attempt of deleting the activities which have no value.
  3. Customers need to shop from all the wholesalers and retailers in-order to boost their sales and stock up in-order to increase the production of these goods and services and and balance the demand and supply chain.
  4. Government should focus on providing incentives to these small scale industries so that they do not fall into the category of sick units and stope their establishment. These incentives will also boost the economy and the small-scale industries owners in giving services to the society.
  5. Government as well as private industries can focus on providing technological advances in terms of distribution of products and services and creating a consumer forum for solving grievances of their customers, and also focus on creating marketing strategies to boost their sales.
  6. A lesser cost advertising strategy can be implemented by the small scale industry owners in-order to boost their sales and attract their customers and create a market for production and distribution of goods and services. It can also start off within their locality and their friend’s cum acquaintances. Word-of-mouth marketing can generate good sales and services and reviewing the products quality and servicing to the owner and different groups and peers will ensure that there is an expansion of the customers within the area.
  7. Delivery of goods and services can be done through applications like dunzo, swiggy,etc. due to the ongoing condition in the country and this will also generate good revenue to the delivery executives and adds advantage to it’s customers.

Over 82% of small businesses had a negative impact during …

https://www.livemint.com › companies › news › over-8…

https://timesofindia.indiatimes.com/blogs/agyeya/covid-19-affect-on-micro-small-and-medium-enterprises-msmes/

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