A recent Private survey conducted to check the perception of MSMEs on Government’s Atma Nirbhar Bharat Package found that almost 44 per cent of MSMEs did not find it useful while only 32 per cent did. According to 44 per cent MSMEs, the national relief package announced by the government has failed to meet their expectations while 86 per cent said that they want direct cash support from the government.
The survey result said, “Overall sense is that the package was difficult to understand and not addressing the felt-needs that MSMEs have and therefore the mood overall is grim”. To this, the survey result further added the statement that the most immediate challenge for MSMEs remains to pay salaries, discharging vendor bills, and meeting other fixed expenses. Around 77 per cent of businesses want emergency funds from the government.
The survey was initiated by Skoch Consultancy Services in association with Federation of Indian Micro and Small and Medium Enterprises (FISME), Bhartiya Vitta Salahkar Samiti and Tax Law Educare Society. The survey was conducted among 200 members of FISME in the National Capital Region (NCR). The survey found that over three-fourth of MSMEs have cut down salaries of their employees while two-thirds are continuing laying off workers after seeing no increase in market demand. In April, the number of MSMEs having laid-off employees was 4 per cent which has increased by 2 per cent more this month to 6 per cent. About 26 per cent of MSMEs are planning to scale down a quarter of jobs while about 30 per cent are planning to retrench half of their employees.
About 59 per cent MSMEs feel that their business is unlikely to survive if the government does not provide them with direct support. Though the business sentiment for survival has improved after the relief package announcement as in April the uncertainty on business sentiments was about 77 per cent. Sector Analysts and Market Watchers have advised the government to provide direct benefit transfer to MSMEs like the kind provided to Jan Dhan Account Holders. This direct cash benefit would help MSMEs to pay for their immediate expenses which have become stressful for them at times their businesses have suffered and incomes have declined.