COVID-19 impact on Small and Medium Businesses: All you need to know
As per the HP Asia SMB Report 2020, more than 73% of the Small and Medium-sized businesses (SMBs) in India are confident that they will survive in the ongoing pandemic and will bounce back post-COVID-19.
The Indian SMBs are more confident than their Asian peers in bouncing back after the pandemic. The regional average stood at 60%.
'SMBs are critical to our economy as they contribute nearly a third of our GDP and generate employment for millions. The ongoing pandemic has impacted SMBs as much as any other segment', as per Ketan Patel, Managing Director, HP India Market.
He further added, 'But the agility and flexibility in their operations, coupled with the adaptability to changing business environments and customer needs means they can bounce back far more quickly.'
Key points of the report
1- As per the report, two-thirds of the respondents from India believe that the pandemic is a good opportunity to reformulate the business strategy.
2- Almost half of the respondents believe that the pandemic will bring opportunity in the long run.
3- Small and Medium Businesses in India have recognised the power of digitalization to bring their businesses back on track. Indian SMBs have recognised 4 aspects that will help them to bounce back-- Using Online Tools (34%), Flexible Work Options (33%), Advice on Strategy (32%) and Innovation at Work (28%).
4- 75% of the people who took part in the survey believe that digital adoption is essential to success.
The survey also outlined several challenges that Indian SMEs have identified as roadblocks in the path of recovery. These are:
Out of SMEs which reported good business growth in the last Fiscal Year, 56% consider digitalization as a path to success while 14% consider it of low importance. Another reason is global instability but is less pronounced in India than the rest of the Asian countries.