Document Type : Original Research Article
School of Management, KIIT University, Bhubaneswar, India
The study highlighted that a higher number of MSMEs comprising manufacturing and retail firms have shut down their businesses temporarily during the nationwide lockdown. We analysed literature related to the topic addressed by this study. It was found that the relief package was not sufficient to compensate for the losses faced by business entrepreneurs of MSMEs in India. Furthermore, many people migrated from rural regions to urban regions in search of better job opportunities, which worsened the situation.
In this research, a secondary qualitative analysis has been applied. With the aid of a narrative thematic description based on the role of the relief fund and nationwide lockdown pandemic situation, we probed into the disruptive situation of the Indian MSME sector. Additionally, the preparation of keywords was realized through a Boolean table and an illustration of PRISMA helped to define the search strategy for this research. Other perceptions of the research method were also discussed. The results showed that manufacturers of both non-essential goods as well as essential goods suffered loss close to 50% during the pandemic. Furthermore, small businesses in India experienced a drastic contraction in business due to a negative growth rate of net sales. It was discussed that the strategy of providing facilities of credit would enable business entrepreneurs to adopt the latest technology such as e-commerce. Probable recommendations included disbursement of credit guarantee schemes, provision of subsidies and extension of tenure of repayment of loans.