Majority Of MSMEs in Pune to recover within next six months: Study
According to a survey conducted by the Pune-based MCCIA, 28% of total businesses will reach the pre-covid recovery in six months. The survey was conducted on 150 businesses of which 72% were MSMEs.
According to a survey conducted by the Pune-based MCCIA, 28% of total businesses will reach the pre-covid recovery in six months. The survey was conducted on 150 businesses of which 72% were MSMEs. The survey also showed that 29% of businesses will recover in less than 3 months while 24% will recover in a period of three to six months. The remaining 19% have already achieved the pre-covid level.
It was observed that for the businesses which were surveyed, the current level of production remained the same as there was a marginal increase from 69 to 70%. The production level took a good leap before the second wave. It increased from 29% in May till 85% in February. The number of employees in these organizations has also increased from say 21% last year to 86% this year. This number declined to 70% in the month of April. 69% of the organizations that were surveyed, are from the manufacturing sector, 13% from the service sector, and the remaining are involved in both manufacturing and services.
According to LocalCircles survey, it is expected that around 59% of start-ups and MSMEs will scale down or even sell their operations in the coming six months. 41% of them have limited funds that will last for just one month and 22% have funds that might last for the next three months. 49% of start-ups and MSMEs will have to reduce their employee compensation and benefit costs so that they are able to sustain their business.
Out of the total MSMEs in India, around 99% are micro-enterprises, 0.01% are medium enterprises, and 0.52% are small enterprises, according to the MSME Ministry’s annual report 2020-21.
Source – Financial Express