The examine carried out over 2020 and 2021 in two rounds, every throughout 1955 micro companies, identified that over 50% of enterprises reported having no coping methods or mechanisms to cushion the pandemic’s influence. Additional, the examine highlights that just about 40% of the micro companies had been denied loans (each formal/casual) as they didn’t have enough collateral and/or lacked constructive credit score historical past, whereas 21% of the companies lacked requisite documentation for the applying.
Ravi Venkatesan, Co-Founder, International Alliance for Mass Entrepreneurship (GAME), said, “There’s a dire want for constructing enough information of financial institution managers, area officers, and banking correspondents on financial institution and authorities schemes. This examine exhibits that of these surveyed solely 31% had been conscious of schemes launched beneath the Atma Nirbhar Bharat initiative. As a part of the bundle, monetary establishments launched a credit score product for MSMEs whose mortgage accounts had been categorized as particular point out accounts by lending establishments. Whereas this was created to help MSMEs unable to repay loans, equally, monetary options might be created to encourage enterprise modifications as a response to exterior challenges.”
On Girls Entrepreneurship
The report launched to commemorate Girls’s Entrepreneurship Day offers insights to policymakers and different stakeholders to higher perceive the hardships microenterprises have confronted and create actionable options. The analysis was undertaken by LEAD at Krea College and was supported by the IKEA Basis.
General, stress ranges elevated over time, with over 20% of the entrepreneurs mentioning that they felt careworn practically daily one yr into the pandemic. When wanting on the influence on gender, patterns differed between women and men. Taking a look at those that reported being not careworn in any respect and people who had been careworn nearly daily, girls appear to have been extra careworn than males within the early section of the lockdown. Girls entrepreneurs additionally reported being extra careworn than males within the early section of the lockdown in 2020.
This development, nevertheless, didn’t present up after 6 months. Among the many staff laid off throughout the 2021 pandemic section, 55% had been girls.
The examine additionally identified that girls entrepreneurs are likely to make use of girls of their enterprises in comparison with these owned by males. The analysis discovered that 80% of employees in women-led microbusinesses had been girls, whereas solely 14% of these employed in male-led microbusinesses had been girls. The info exhibits that microbusinesses led by feminine homeowners witnessed better layoff general.
There are 489.3 lakh persons are employed in varied micro enterprises in city areas of which 20% are girls (NSS 73rd spherical, 2015-16). These micro enterprises comprise 99% of the MSME phase of the nation. Their common productiveness which is the Gross Worth Added (GVA) divided by variety of employees stood at Rs 60,544 in 2010-11 was nevertheless decrease than the general common of MSME Sector. This implies how the micro phase of enterprises are on the Base of the Pyramid using a overwhelming majority of the employees.
Supply: India Times