{"id":16237,"date":"2020-12-15T04:15:13","date_gmt":"2020-12-14T22:45:13","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=16237"},"modified":"2023-05-17T18:55:41","modified_gmt":"2023-05-17T13:25:41","slug":"5-ways-small-businesses-stayed-afloat-during-covid19","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/5-ways-small-businesses-stayed-afloat-during-covid19\/","title":{"rendered":"5 Ways Small Businesses Stayed Afloat During A Tough Year"},"content":{"rendered":"

Optimism is the anchor that can make your ship sail through the turbulent waters.\u00a0<\/strong><\/em>2020 has been the toughest for the global economy, but many small businesses have braved it all, giving us a ray of hope.<\/p>\n

\u201cMSME sector contributes 30% to GDP and export from it is 48%. Presently MSME is the most important sector for the country, I say it’s the backbone of Indian economy,\u201d –\u00a0Nitin Gadkari, Union Minister of MSMEs<\/p><\/blockquote>\n

Data shows that MSMEs have the resilience to endure tough times and bounce back stronger. A survey by American Express India and YouGov recently confirmed this fact. Four out of five businesses believe their business will survive even if the pandemic continues.<\/strong><\/p>\n

So how did the Indian small business pull through the most difficult and testing period?<\/p>\n

What helped small businesses brave the pandemic?<\/h2>\n

#1 Innovation<\/h3>\n

COVID-19 saw the rise of innovative solutions from entrepreneurs to sustain and survive. Some businesses incorporated innovation in their product offering as well. For instance,\u00a0researchers in IIT-Delhi developed the world’s most affordable COVID testing kit ‘Corosure’\u00a0in July 2020.<\/p>\n

The power to innovate and think out of the box to gain the consumers’ trust during these unique times kept the MSMEs optimistic and confident.<\/p>\n

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Innovation process in SMBs<\/figcaption><\/figure>\n

Also Read: Innovation at the time of COVID \u2013 How these Indians came through during a tough time<\/a>\u00a0<\/strong><\/p>\n

#2 Government initiatives<\/h3>\n

MSME sector is the second-largest employer in the country after agriculture with more than 12 million shops, states a Nielsen report.<\/p>\n

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Image source: www.mbarendezvous.com<\/figcaption><\/figure>\n

While there is certainly much scope to do more, timely and strong support from the government also helped the SMBs.<\/p>\n

International Monetary Fund\u2019s head Kristalina Georgieva observes that “India’s\u00a0below-the-line stimulus (equity, loans, guarantees) has been better than the average developing countries during the pandemic.\u201d<\/p><\/blockquote>\n

Some notable initiatives by the Government are Champion Portal, which provided a platform to anyone who has a business idea to pitch their business and acquire funding or investors interest, and Emergency Credit Line Scheme.<\/p>\n

Also Read:\u00a0How has the ECLGS helped MSMEs so far?<\/a><\/strong><\/p>\n

#3 Support from consumers\u00a0#I\"\u2764\ufe0f\"local<\/h3>\n

This year saw small businesses getting support from the Indian consumers too. This meant consumers chose to buy from a local seller over a popular brand.<\/p>\n

According to the Unicommerce report, over 78% of new buyers preferred buying from small businesses. <\/strong>Campaigns around \u2018Handlooms\u2019, \u2018Vocal for Local\u2019 and \u2018Made in India\u2019 were a big hit. They encouraged a shift in buyer behaviour and pushed small businesses to take the online route to boost sales.<\/p>\n

#4 Going online<\/h3>\n

Small businesses increasingly optimised the use of social media to promote their products and services and increase sales. With COVID-19 shutting physical shops, many small businesses pivoted to start their online journey.<\/p>\n

A survey by Bluehost found that more than half of the businesses surveyed observed growth in their online traffic. 9 out of 10 respondents felt it is vital to selling online.\u00a0<\/strong><\/p>\n

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Source: https:\/\/www.bluehost.com\/blog\/<\/figcaption><\/figure>\n

In India,\u00a0over the last year, order volumes on the \u2018Amazon of the Government\u2019 \u2013 the Government e-marketplace has increased by 89%.\u00a0<\/strong><\/p>\n

Read:<\/strong>\u00a0How you can sell your products\/services on the GeM platform<\/a><\/strong><\/p>\n

#5 Digital-first approach<\/h3>\n

The outbreak of the pandemic proved to be a major catalyst for many small businesses in adopting end-to-end digital services and sustaining the recovery stage.<\/p>\n

According to the Visa Back to Business study, 78% of consumers have changed their shopping habits in the wake of COVID-19, including shopping online whenever possible and using contactless payments at checkout.<\/strong><\/p><\/blockquote>\n

This implies an increased need for contactless experiences and affordable payment options at the point-of-sale (online or in-store) for the customer will continue to improve the buying power, especially during the recovery phase.<\/p>\n

As per an EY survey ‘Sentiments of India \u2013 Pulse of the country, Kiranas’, 40% of small business owners are now open to partnering with online delivery and supply platforms.<\/strong><\/em><\/p>\n

Want to take your small business digital? Start with Instamojo!<\/h3>\n

To be successful, small businesses need smooth processes like\u00a0business payments, inventory, sales order and fraud management, etc. Efficient partnerships between fintech, big technology players, and payment networks are also critical for their success.<\/p>\n

Instamojo provides an all-round digital solution for your small business to grow and scale. With Instamojo you can:<\/p>\n