The revival of Small Businesses – A Challenge & Impacts
COVID-19 has impacted a lot to this world. During this pandemic situation, the time has been turned round to the zero when only the रोटी कपड़ा और मकान was the basic need. Now, in this pandemic, the businesses are also categorized into two major parts – Essential Needs and Non-Essential Needs.
Today, people are struggling with their jobs, businesses, or in short for their आजीविका.
Many of us who are reading this article must have faced this challenge or might be still in the struggling phase.
However, the government has launched so many plans to boost the businesses up but factually the advantages are taken by big businesses only, who already have fewer chances of collapse whereas the small businesses are already collapsed or are in collapsing stage.
Small businesses that are actually the basic building bricks for large scale businesses are ignored somewhere or we can say that compensation benefits are not still out of reach to them. As these businesses are not breathing so as per the opinion funding done by the government is almost of no use if market cash flow is not done.
Let’s see in this perspective, how the ground market works and who are the actual consumers, responsible for the majority of the cash flow.
The people who are आम जनता used to go to the local markets and shop for their daily needs are not able to spend due to limited earning opportunities. Their spending supports the local markets which raises the demands to factories/small businesses and which in nutshell is propagated towards higher level i.e. brands etc. We can also say, these local shoppers are the backbone of the Indian Economy and are the prime demand raiser. If we look at the Indian population, the majority of the population lies under either the Lower Class or the Middle Class and most of them use the local markets for fulfilling their requirements and that’s why they are the backbone.
These people are totally dependent either on their daily wages works, shops, or the factories/companies which are their primary source of income. Unfortunately, all their income sources are got limited now which resulted in very limited or controlled spends means very less cash flow in the market.
Nevertheless, during the lock-down period, most of the entrepreneurs supported their workers to live with their essential needs which lead to their fund crisis. These fund crises have become the show stopper to them and they are not able to trigger their businesses again. The operational cost starts from day one of switching on the machinery and limited or almost no fund is not allowing them to run the business or take the risk. This scenario has lead to unemployment and hence the again, many people are impacted which turns into very limited cash flow in the market. This means, there is almost no demand or the very limited demand which never qualifies the business case.
So, the loop of less cash flow due to unemployment, less demand, and fund crisis has been created.
Until this loop is broken, it is very difficult to make the market vital. Slow-down will continue threatening, more businesses will collapse, and the overall lay down of human resources means unemployment will go on increasing.
In a nutshell, small businesses are required to be recognized as potential sources to the economy and special drive should be run or a policy should be made to revive them to increase the opportunities in the market and come out of slow down.