The coronavirus outbreak has left India’s startups and small businesses jittery about their future.
As much as 61% startups and small & medium enterprises (SMEs) in the country are staring at the possibility of scaling down their business in the next six months. Only 13% are expecting their business to grow, according to a survey conducted between April 18 and 23 by LocalCircles, a community-led social media engagement platform.
This nervousness, among a majority of the total 13,970 respondents from 90 Indian districts, is a consequence of the economic climate prevailing in the country.
The nationwide lockdown to check the spread of coronavirus, which began on March 25 and is likely to last till at least May 3, has brought several businesses to a grinding halt.
E-commerce deliveries have been restricted to essential products, service deliveries have been shut, and malls and market complexes do not yet have permission to open for business. The travel and tourism industry, which has been impacted globally because of the Covid-19 pandemic, has seen no activity since the lockdown began.
These factors also appear to have directly impacted the cash reserves of SMEs and startups. Over a quarter of the respondents said they have no cash for their monthly operational costs. Another 20% said they have funds to last less than a month.