The COVID-19 pandemic has hit the Indian micro-businesses hard and while 83 percent of those surveyed reported a decline in revenue, nearly half of them had to shut their business temporarily, a new report said on Wednesday.
Several micro and small businesses in India are impacted by low financial investment, with more than 70 percent of respondents reported experiencing an overall decrease in funds, according to the survey by domain registration and web hosting giant GoDaddy.
Forty-eight percent of small businesses said that maintaining cash flow was the most pressing need to keep their business running during this crisis period.
“Even with these challenges, the survey observed that very small Indian businesses are stepping up, with 56 percent of them believing it is more important now to positively impact their community, as compared to 41 percent globally,” the findings showed.
Additionally, 37 percent say they started donating to charitable causes as compared to 17 percent globally.
Despite facing problems, according to the “2020 Global Entrepreneurship Survey,” micro-businesses in India are optimistic about the future.
More than 60 percent of the very small business owners said that despite the slowdown and negative impact brought on by the pandemic, they are confident that their business will continue (as compared to 52 percent globally).
“While it is always good to maintain a positive outlook to help overcome present challenges, entrepreneurs in India are showing what the entrepreneurial spirit is about,” said Nikhil Arora, Vice President, and Managing Director, GoDaddy India.
“They may have had to shut down even if only temporarily, but they are adapting and working to rebound and help their small business grow,” he added.
The overwhelming majority of very small business owners in India surveyed (88 percent) believe their business will grow in the next three to five years, with 43 percent responding they expect a growth of at least 50 percent, and another 45 percent expecting least 25 percent growth.
“Additionally, 57 percent of the respondents said they expect to be able to recover from the aftermath of COVID within the next three to 12 months. This clearly states how determined SMBs in India are to get back on track,” the survey found.
The survey was conducted by the Savanta Group, a global research firm, during June and involved 5,265 small business owners across 10 countries including India.