Lower purchasing power, costlier raw materials, create challenges for MSMEs, says survey

Even as COVID-19's impact is gradually receding, the economy is yet to stabilise completely, because of several factors.

FPJ Web DeskUpdated: Wednesday, December 21, 2022, 09:52 PM IST
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In the past year, the costs of ingredients for their business, Art Eatables, have surged between 10 per cent and 50 per cent./ Representative image | Image by Mango Matter from Pixabay

Falling demand and higher prices of raw materials triggered by high transportation costs, created challenges for micro, small and medium enterprises in the last 27 months.
    
A survey by Bhartiya Yuva Shakti Trust (BYST) says that although markets have stabilised, almost 57 per cent of factories are struggling to bag new orders for their products.
    
Lakshmi Venkataraman Venkatesan, Founding and Managing Trustee, BYST, called low purchasing power among consumers and higher production costs largely because of raw materials, as spoilsports for Indian entrepreneurs.

Even as COVID-19's impact is gradually receding, the economy is yet to stabilise completely, becuase of multiple factors.
    
About 27 per cent of the entrepreneurs have said that they are finding it difficult to repay their loan instalments on time, it added.
    
As per the report, 53 per cent of MSMEs stated that they are doing better in some aspects in comparison to the pre-pandemic phase.

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