Following list exhibits the number of prevalent issues faced by the MSMEs during COVID 19 pandemic.
The most obvious obstacle that becomes prominent soon after the advent of COVID 19. MSMEs’ contribution to the economy is somewhat unparallel as compared to other sectors. While the pandemic was too drastic for the economy, the MSMEs operating pan India was finding it hard to cope up with its adverse effect.
There was a time when everything was at a halt due to this pandemic and MSMEs were struggling to meet the production demand due to liquidity crunch. As per government sources, almost 90% of the MSMEs, smaller ones in particular hardly manages to complete the daily production target due to the unavailability of funds and necessary resources.
Shortage of Raw Material and Other Essential Inputs
MSME is facing the shortage of the raw materials as they are dependent on the raw materials imported from the multiple countries and due to the COVID-19 virus both the export & import of raw materials have been disrupted creating widespread scarcity
Absence of Manpower
No sector can maintain a sustainable production level without skilled laborers. They have continued to remain the major contributor for the companies, especially MSME. But after the arrival of the COVID 19 everything was changed since the majority of the laborers were forced to remain at home, leaving the industrial sector to face the biggest scarcity of manpower of all times.
Covid 19 emerged as an unprecedented threat to human life and the global economy. It not only sabotaged the purchasing power of the consumer but also disrupted the supply-chain mechanism. Due to this, the manufacturer was finding it hard to raise the demand for their product.
Escalating Operating Cost
Since Covid 19 virus causes the widespread scarcity of resources, the MSMEs operating nationwide encounter a sudden dip in the production volume that further translated into low revenue generation followed by rising operating costs.
There is no doubt that MSMEs are confronting the relentless economic crisis at present despite the launch of ample government schemes. Although the government is trying its best to contain the after-effects of the Covid 19 pandemic, there are still many gaps that need to be filled.
We hope that the Government will come up with initiatives that can bring the affected MSME sector back on track as anticipated. Share us your views or queries related to this topic i.e. initiatives taken by the government for MSMEs.
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