Key Learning from 2020: How Indian MSMEs survived COVID 19 & Prepared to Kickstart 2021
The year 2020 was tough due to COVID 19 pandemic and like a nightmare for Indian brands & businesses and MSMEs. However, it has also proven to be a great learning curve. The global pandemic has redefined the business rules, forcing entrepreneurs to think out-of-the-box to find innovative ways to survive amidst challenging times.
According to a report published in Financial Express, ‘in 2020 about 38% of startups struggled with funds, and 30% of them had only 1-3 months of reserved working capital. Many businesses also reported around 80-90 % drop in their revenue’.
Though the Indian startup ecosystem emerged in the early 2000s, most businesses followed the traditional path to run their business operations in a straight, simple, and most convenient way.
According to the global innovation mapping and research company StartupBlink, ‘Indian startups ranked 23rd amongst 202 countries, based on their strength.
When the worst-ever global health emergency was also stuck in India, immediate measures were required to survive the lockdown. Though many Government Schemes were launched, Indian businesses and MSMEs also stepped up their game by mobilizing their operations online.
So how did they manage to survive during the challenging times? Check out the key learning’s from 2020 that helped the Indian MSMEs survive:
- Digital Innovation & Manage Cash Better
The reason why Indian startups are growing at a rapid pace is their flexibility to adapt to new changes and optimistic approach. During the pandemic, the most important learning that entrepreneurs or solopreneurs are willing to implement in 2021 is cash management and digital innovation.
Umar Akhar, Founder of Bengaluru-based Koskii also agrees. He says, “every entrepreneur must learn to increase their efficiency and manage cash better.
Also, digital innovation and the rise of online business operations is a promising trend, for which every business owner must be prepared.
- An Upward trend for Ecommerce
If there was one way through which most of the businesses survived during the pandemic, it was the power of digitalization.
With the imposed nationwide lockdown, the SMEs realize that for their business survival, they needed to adopt technology and constantly power themselves with digitalization.
The Chief Corporate Affairs Officer of Flipkart Group says the COVID 19 pandemic has helped MSMEs realize the potential of technology and e-commerce. Thanks to that, they have become modernized and upgraded.
- Cloud Adoption
Cloud adoption is the latest entrant that has given a new direction to SMBs. By upgrading themselves, the SMBs have increased their efficiency and productivity, since remote working allowed them to work in a secure environment.
2021 has come with great opportunities for SMBs to grow and expand with the power of technology, reimagined business models, and optimized business operations. Most of the MSMEs are willing to make the changes that are required for them to sustain.
However, it takes more than just the willingness to bring your business from the losses inflicted by the year 2020. Other key problem areas might require your attention. Resolve all the business-related challenges with our Problem Solving Courses.
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