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COVID-19 Impact on MSME and Strategy to Overcome and Grow | 104333
International Research Journals
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COVID-19 Impact on MSME and Strategy to Overcome and Grow

Abstract

Sreedhar BN* and Renati Jayaprakash Reddy

The Micro, Small and Medium Enterprises (MSME) sector is the important business sector which contributes to the GDP and employees’ large number of work force throughout the world. In India also The Micro, Small and Medium Enterprises (MSME) contributing approximately 30% of the country’s GDP (Gross Domestic Product), 45% of manufacturing output and providing employment to 11 crores of India’s population during 2021-22. The COVID 19 has impacted business throughout the world, in India the COVID-19 is also severe. The MSMEs has been impacted severely, then the large industries. The COVID-19 impact on MSMEs in all the aspects, like shortage of raw material, low demand, unavailability of skilled labour as they migrated to the native place, financial crunch many of the MSMEs were not able to pay salary, electricity, rent, creditors not paid etc, technology barrier, etc. The government of India has announced various financial and non-financial measures for supporting the MSMEs. The strategy MSMEs has to adopt during this crisis to survive and grow are elaborated. The MSMEs should adopt the measures to overcome the difficult situation and progress strongly when the COVID-19 impacts reduce.

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