The backbone of the Indian economy, the micro, small and medium enterprises (MSME) which account for half of India’s manufacturing output needs the proper support and relief during this crisis and post. India comprising of 63 million MSME units as per the ministry’s annual report for 2018-2019 should need to have proper plans and actions to face the situation and to grow.
Unlike the big companies where they have proper plans and resources to use adequately and in a proper manner, small businesses do not have much and if they act with wisdom only, can they survive. The whole economy is getting affected by the crisis, it is having a huge impact on all of the sectors whether it be business, trade, commerce, or economics.
International relations are likely to remain disrupted in disagreements, and lack of consensus over the next few months. During this period, MSME needs to consider the following questions like what should they do to emerge stronger? How can they be in a normal situation? What actions should they take?
India by 2022
Some of the estimates suggest that MSME may contribute between 35% and 20% from the current 29% of GDP. Also, in this scenario, the rise of unemployment can be seen to rise to around 30%.
Apart from the predictions, the MSME sector could use these guideposts of action. They are listed as follows:
1. Keep the trust of your customers and employees.
2. Try to change and focus completely on business.
3. Invest in both short term and long term.
4. Create not compete.
5. Hire smart talent and move slowly with media.
6. Get involved with digital media.
7. Be modest and open, don’t hide organizations weaknesses
8. Use data along with intuition.
9. Having a portfolio approach serves better and try to build a trauma management capability before it hits.
10. Plan for the upturn
11.Focus and change business.
12. Build a family culture and lead with humanity.
13. Try to outsource and think for sustainable long-term productivity.
14. Think from a win-win situation and do not earn unfairly.
15. Think globally and be philanthropic in conduct.
Though these actions cannot be taken at once but MSMEs can follow a step by step process and this will help them to bounce back with more vigour.
