There was an era when one business coordinated with another and the chain continued with making India a hub of business. Nevertheless, cities to cities began connecting with one another till we could see an economic rise in the nation. But with the bomb of Coronavirus, many businesses had to stop their ventures, and lately we were left with no other option than being “atma-nirbhar” or self-reliant.
Recently, the Reserve Bank of India (RBI) has increased the exposure threshold of micro, small and medium enterprise (MSMEs) to Rs 50 crore for them to participate in its Resolution Framework 2.0. The second iteration of RBI’s restructuring offer was originally introduced in early May but was limited to small businesses with loans up to Rs 25 crore. The availment of this restructuring scheme will not only ensure smooth flow of liquidity, at reasonable costs but will also benefit the MSME’s in long run by restructuring the account without classifying it as an NPA.
The pandemic and subsequent lockdown has hit many businesses, but some have also considered this as an opportunity, because there is no other option left. Amongst this, the notion of being independent yet working out on business ideas has become successful among businesses to an extent.
Here are a few examples:
Health and sanitisation have become very important in the past two years. Considering this, many vendors have also started business for sanitisers and masks as it has become an essential commodity. So, apart from Dettol and Lifebuoy which were the prominent brands for sanitizers, many others too began manufacturing and selling their own after there was a shortage of sanitizers across the nation. Somehow it gave a hike to their business entities. Furthermore, many people began reselling these in bulk from city to city.
The idea for elaborating businesses began with online buying and selling of products. Since moving out became impossible given lockdown and restrictions, online sources got a hike in their business. Many other brands too began joining popular online sites like Amazon, Flipkart, Myntra etc. These online portals have given rise to many small ventures as they could resell in a way that they cannot in retail outlets.
Secondly, many online manufacturing sites too got a boost after their online business witnessed a noticeable jump in sales in the market.
The initiative of atma nirbhar abhiyan has also benefitted in many ways. The government had initiated several policies, including the Rs. 5,000 crore credit facility for street vendors. These credits would be available on affordable loans with an initial capital loan of minimum Rs. 10,000. The scheme will cover both rural and urban areas. The idea is to benefit up to 50 lakh vendors with initiating a credit flow of Rs. 5,000 crores across the nation.
With online boost, liberal bank loans and development of e-commerce market flow, people can definitely get their business on track in these hard times. Talking about city to city growth, the online market is extended to a wide range across the country. Therefore, B2B as well as B2C can be relied upon when it comes to city-to-city affiliation. For this, courier services are able to make it easy for people to buy and for businesses to grow.
Authored by Shivam Soni, CEO & Founder, Beyoung Folks Private Limited