Covid-19 Impact on MSME

The COVID-19 pandemic was a one-of-a-kind adversity that the world was not prepared for. It had a huge impact on almost every business sector. Survey reports have shown that disruptions caused by the COVID-19 pandemic impacted MSMEs earnings by 20-50%. The micro and small enterprises faced the maximum heat, mainly due to the liquidity crunch. However, the Enterprises working in essential commodity business were better off in terms of interrupted but predictable cash flows. Some enterprises innovated their ways by shifting focus from non-essential commodities towards essential commodities; like production of hand sanitizer and toiletries, PPE kits, reusable masks, etc. and are able to survive in tough times. MSMEs present in remote areas also faced lots of difficulties due to interrupted supply chain systems and intrastate lockdown provisions.