3 Critical Lessons Small Businesses Must Learn From Covid-19 To Grow In Post-pandemic World

Ease of Doing Business for MSMEs: The small business owners must build trauma management capabilities to be able to respond to a crisis with their inherent strength, resolve and resilience.

Ease of Doing Business for MSMEs: Covid-19 has significantly increased the odds of around 19-24 per cent of the 75 million SMEs in India being at the risk of insolvency or extinction. Around one-fourth or one-fifth of the balance sheet of the loans to SMEs are at the risk of being NPAs. Around 10-25 million jobs in SMEs are expected to be lost over a period of next 12-18 months, particularly the temporary staff in manufacturing companies. Indian economy is expected to report the GDP growth close to 1-2 per cent by the end of 2020, with small businesses and poor people being the worst causalities. It is just not the irrational anxiety that is expressed in these dark predictions, but it is, indeed, a serious possibility. India is not the only country. The global economy is reset with a possible cost of Covid-19 anywhere between $5-10 trillion based on current estimates. As I observe Covid-19 and the mayhem it has caused globally, I reflect on several lessons that small businesses can learn from this epidemic. In this article, I present three of them.

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Be Proactive and Be Fast: The businesses must learn that while the Covid-19 brought the world to its knees, the societies that are less impacted have a better sensory perception system. The incidence in China made a few outside China, respond stronger. For example, the Bay Area in the US responded to the then invisible virus in their area much better by an assumption that they would be hit as badly. They prevented large-scale impending damage by assuming the worst scenario and took precautionary measures faster. They forced lockdowns earlier, prepared healthcare systems better and appear to have fared well. 

Source: Financial Express

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