As small businesses face an existential threat as demand and supply vanish in the market amid coronavirus pandemic. It is expected that the government might release relief funds for small businesses. Also, the challenges of working capital shortage and lack of manpower, the survivability of these small firms are the most to be threatened.
It is expected that more than a quarter of India’s 63 million small, micro and medium firms may have to shutter before the summer’s end. Chief Executive Officer and Co-founder IoTfy, a technology partner to consumer durables and appliances brands, Arpit Chhabra said,
“Supply chain and production disruptions have impacted our business in the current season. We have a lot of surplus inventory for summer appliance categories such as air conditioners,
air coolers, and water purifiers because of reduced production in February and March”.
He adds that overall the company can anticipate at least 15 percent less production compared to initial plans. And thus, this is making the company hitting badly because the capital is gets trapped in inventory.