Challenges and Opportunities for MSMEs in light of the Covid-19 crisis #GameChat Highlights
Contextually curated highlights from #GameChat about Challenges and Opportunities for MSMEs in light of the Covid-19 crisis.
image credit: @GameIndia2
We’re bringing together a panel of experts to discuss how MSMEs can survive the present and what the future holds for them in a post-COVID world. We welcome your participation to collectively arrive at solutions and overcome this global crisis. #GAMEChat #BusinessContuinity pic.twitter.com/QziqHSHs8T
— G.A.M.E. India (@GAMEIndia2) April 15, 2020
@rvenk @madanpadaki @sthukaram @PriyadeepSinha @viditaatrey @ShekharGupta @RajivKumar1 @TVMohandasPai @amitbasole @amitabhk87 @binnybansal @wadhwani_alkesh @deepalikhanna @Her_and_Now @goonj @_sattva @WadhwaniF @DeshpandeFdtn @deAsra_FDN @TiEBangalore @TiEPune @NITIAayog
— G.A.M.E. India (@GAMEIndia2) April 15, 2020
#GAMEChat is geared towards enabling small businesses to stay sure-footed and receive the support they need in an unsteady economy. Use #GAMEChat and share your answers in the comments below. @_mekin @DalbergTweet @Sairee @sharon_buteau @ChampacaBooks @DoegarAniket pic.twitter.com/BgVJKvKueW
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
A large number of businesses are SHUT.
— Mekin (@_mekin) April 16, 2020
Some of these businesses can sustain a week's shutdown, but we are not almost in the 2nd month.
Survival of the business, Paying salaries, supply of inputs, people(labour) availability & movement are some of the large challenges I see
#GameChat
— Mekin (@_mekin) April 16, 2020
Clarity on which businesses can operate & which can not, took 7-15 days .... this was precious time - and made the situation very challenging for the entrepreneurs.
#GameChat
— Mekin (@_mekin) April 16, 2020
Over 90% of our businesses in India are informal - and we need a way for the schemes and packages the govt is announcing to be able to reach them.
eg. The moratorium that RBI announced, hasnt yet reached the MFIs that work most closely with the informal businesses.
MSME's don't have runway and don't have backers. They need daily sales and customers to keep going. With no incomes the impact is spiral on workers, their families and eventually the society and economy. #Gamechat It is a collective challenge
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#gamechat The other challenge is the power of collective - MSME's don't have the same seat at the table as India Inc or startups. They are fragmented and don't bring the same influence as large cos. Their interests come much later in the chain unless policymakers are proactive
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#gamechat The challenges are connected - one person's expense is another's income - it is a blanket situation of unprecedented scale which poses threat to peace in civil society
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#GAMEchat On HR side: Most MSMEs usually employ contractual workers. And most of these contractual workers are migrant labourers. But as witnessed in the past couple weeks, reverse migration has happened at a large scale, thus creating manpower shortages.
— Sharon Buteau (@sharon_buteau) April 16, 2020
#GameChat
— Mekin (@_mekin) April 16, 2020
And hence, resuming operations even when the lockdown lifts up - will be a large challenge for a LOT of the MSMEs.
Ideas to counter this?
1. Liquidity infusion @DellFdn @on_india @GAMEIndia2
— Ashwin Chandrasekhar (@AshwinChandras7) April 16, 2020
2. Entrepreneurs networks to learn and connect hyperlocal supply/demand - @Facebook @WhatsApp @MSKaizalaApp
4. EXTREMELY easy for new enterprises to form - @deAsra_FDN @WorldBank @DIPPGOI @ccsindia
#GAMEchat On Finance side: Cashflow is severely disrupted. (both paying supplier and receiving funds from client side issues). Huge danger if liquidity issues become insolvency issues.
— Sharon Buteau (@sharon_buteau) April 16, 2020
One of the big operational challenges for MSMEs right now are supply chain bottlenecks. MSMEs generally have a very localised supply chain for their business, with both consumers and suppliers usually in the same geographical area as the MSME.
— Sharon Buteau (@sharon_buteau) April 16, 2020
#GAMEchat On HR Side: Increase of mental health issues such as anxiety, depression, stress on potential long term income. As well as we can see the gender disparity, women take the burden of housecare, education in lockdown,
— Sharon Buteau (@sharon_buteau) April 16, 2020
A coordinated body like the cii or ficci is needed to share the concerns of msme for policy. We do have a similar body for MFIs as well.
— aniket doegar (@DoegarAniket) April 16, 2020
#gamechat @GAMEIndia2 @_mekin @Sairee @ChampacaBooks - cash is king right now and there isn't enough to go around; long lines to ATMs and MFIs/NBFCs not lending; flight to safety & flight to quality from banks not good right now @livemint #Indiaagainstcovid19
— Ashwin Chandrasekhar (@AshwinChandras7) April 16, 2020
Every economic meltdown witnessed the birth of disruptive business propositions. So what lies ahead for us beyond the pandemic? Use #GAMEChat and leave your answers in the comments below. @_mekin @DalbergTweet @Sairee @ChampacaBooks @DoegarAniket @sharon_buteau pic.twitter.com/OvgxagxnDU
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
#GameChat
— Mekin (@_mekin) April 16, 2020
There is an opportunity for us to work on & increase TRUST all around.
Govt to TRUST businesses, especially current informal ones.
Businesses TRUSTING each other
& most importantly
CUSTOMERS & BUSINESSES trusting each other a LOT more.
#GameChat
— Mekin (@_mekin) April 16, 2020
A lot of trends will get accelerated:
Remote/Home businesses (like Cloud kitchens) ... enabled by digital platforms
LOCAL - will gain in importance.
#Gamechat Micro entrepreneurship, DIY, local governance, communities, peer to peer commerce, cluster approach will be in focus as opportunities move away from the end of globalisation and the China model of cheap and mass. Even today states with better autonomies are doing better
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
Other emerging market opportunities lie in creating market networks which are not centralised - every buyer is a seller, every seller is a buyer and their are central infra stacks enabling attribution, payment etc. #gamechat
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#Gamechat Post Covid world demands a reset of our priorities - a complete relook at what we focus on. All it took was one month for security and economic engine to crumble. It means we build for humanity above everything else and every business is an impact business
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
How do we enable ideas like #buylocal and #spendmore to enable cash to keep cycling in the economy, @Sairee ?
— Priyadeep Sinha (PD) (@PriyadeepSinha) April 16, 2020
Should the Govt circulate more currency in the economy, clearly inflation will be adjusted given spends are drying up considerably.
#gamechat We need fiscal enablers - support for local businesses, access to capital and less paperwork. We need creation of consumable upscale-able value for society - things that strengthen the people - and things essential to human existence.
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#GAMEChat Going local in manufacturing is something to focus on, but it won't happen immediately. We've cracked the local home stay concept in tourism - can we replicate with community manufacturing for instance
— aniket doegar (@DoegarAniket) April 16, 2020
#Gamechat The opportunities lie in centre of local communities, small businesses and sustainable means. They will also come from reducing social inequity - conscious businesses in health, well being, learning, civic management, universal basic incomes and indigenous crafts
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#GAMEChat I think this is a massive opportunity for us to go local and double/ tripple our women workforce participation meaningfully. We have an opportunity to rethink on business and credit models
— aniket doegar (@DoegarAniket) April 16, 2020
Do you think we need to rebook at our manufacturing and services units to not lose production yet enable social distancing and all needed hygiene measures in place?
— Priyadeep Sinha (PD) (@PriyadeepSinha) April 16, 2020
So far we have focused on customers in Bangalore. Going forward, as we invest further in an online presence, we can connect with customers all over India, and beyond. Of course, we want to retain our essence, which is that of a carefully thought-out community space.
— Champaca (@ChampacaBooks) April 16, 2020
How does this phenomenon take place for 10s of thousands of businesses around the country? For micro and small businesses? If we can build a #movement around this, the whole economy can benefit immensely. Jobs can be retained, businesses survive #GAMEchat
— Priyadeep Sinha (PD) (@PriyadeepSinha) April 16, 2020
#GAMEchat: There has been a requirement to quickly shift to everything “virtual” – potentially better “virtual meeting/conference” facilities, online education, virtual tourism, etc
— Sharon Buteau (@sharon_buteau) April 16, 2020
#GAMEchat: Health-tech sector. Despite India doing relatively better in containing the spread of coronavirus, gaping holes in the country’s healthcare system and its supply chain have been brought to light., Opportunity to plug at least some of these gaps.
— Sharon Buteau (@sharon_buteau) April 16, 2020
@_mekin @Sairee @sharon_buteau @DoegarAniket - to stimulate MSME demand: what do we think of a 'be Indian buy Indian' combined with a '100% desi' brand label for consumers? Like 'shudh desi ghee' but now 'shudh desi kanghi' btw lots of comb imports from China. WHY! @GAMEIndia2
— Ashwin Chandrasekhar (@AshwinChandras7) April 16, 2020
#GAMEChat I think more than buy indian we should focus on the brand of quality products from our MSMEs. That will automatically push local and foreign consumers to buy from indian small manufacturers. We have already proved it with artisans and weavers industries in the past
— aniket doegar (@DoegarAniket) April 16, 2020
#GAMEChat I agree on this point! It's also time we think about how local, small manufacturers manage their operations. So much of it is right now legacy-old systems! Can we enable small businesses with digital infra — customer engagement, scale, etc.? @RestatCo @richaverma8792
— Leena Soni (@leenasoni_) April 16, 2020
We even import Idols, Rakhis, Candles, Flowers, Fruits etc from China and Thailand and Vietnam. How do we enable hyper local substutution? Where should we start from? #GAMEChat
— Priyadeep Sinha (PD) (@PriyadeepSinha) April 16, 2020
Digital disruption, collaboration to push safe mobility, delivery is a huge opportunity. Also hygiene factor in businesses will be really important post covid. Focussing on building that trust will be crucial
— aniket doegar (@DoegarAniket) April 16, 2020
The role of a leader cannot be understated in times of crisis. They have the power to uplift morales and help businesses shift gears towards stability. Use #GAMEChat and let us know what you think in the comments below. @_mekin @Sairee @DoegarAniket @ChampacaBooks @sharon_buteau pic.twitter.com/0E4ooL8WdY
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
As countries like Finland, New Zealand, Taiwan, Germany have shown us - leadership is about transparency, empathy, action oriented accountability - #gamechat and same stands true for businesses - MSME's carry a lot of weight on their shoulders inspite of challenges
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#GameChat
— Mekin (@_mekin) April 16, 2020
This is a time where decisions - likes of which felt impossible, can become real. Some crazy things I have already seen
Collaboration between competitors,
Customers paying advance without being asked
People working without expecting money
Its a Time to REIMAGINE
#GAMEChat do you think we are going to see a lot of mergers, aquisitions, consolidation in the MSME space as well ? We are already seeing it in large service delivery companies
— aniket doegar (@DoegarAniket) April 16, 2020
#GameChat
— Mekin (@_mekin) April 16, 2020
Doing more of the same, WILL NOT work for a large number of businesses.
It is important to make decisions - tough ones too.
Good leaders, will shepherd their businesses to not just safety but also to emerging opportunities.
Does leadership in such situation also look distributed? We know old ways won't work, there is a lot of conversation around that just some form of stimulus package won't work. How do we push governments, corporates and the whole ecosystem to think very, very different? #GAMEChat
— Priyadeep Sinha (PD) (@PriyadeepSinha) April 16, 2020
#GameChat
— Mekin (@_mekin) April 16, 2020
Wherever being distributed leads to SPEED & PROXIMITY to customers - its great at a time like this.
but if being distributed slows down decision making - it could be fatal.
#gamechat This shift is perhaps the biggest test of leadership in recent history. Not only federal leadership but local self governance, businesses, communities - it is imperative to bring voices that are diverse
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
Create an online network of local service enterprises and their hyperlocal customers. Enable lending by customers at low to no interest rates. Conceptually similar to Community Shares in the UK. This will help create self-sufficient hyperlocal enterprises.
— Pr80 (@Pr8010) April 16, 2020
The key to surviving a crisis is awareness. So help those in need in our network by leaving your inputs in the comments section below. Use #GameChat @_mekin @Sairee @DoegarAniket @ChampacaBooks @DalbergTweet @sharon_buteau pic.twitter.com/GBdOEwbjcu
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
#GAMEChat some of the schemes right now available pic.twitter.com/Tka4gtwfqh
— aniket doegar (@DoegarAniket) April 16, 2020
The Govt and public sector organizations need to shed their old skins and provide access to schemes at super high velocity. If resolutions took 10-15 days earlier, can it be a day now? The time is now to build the momentum #GAMEChat
— Priyadeep Sinha (PD) (@PriyadeepSinha) April 16, 2020
We really appreciate networks like you, @GAMEIndia2 for the support that you've given small, community spaces like ours. This helps keep our women-run bookstore and cafe going. #GAMEChat
— Champaca (@ChampacaBooks) April 16, 2020
#GAMEchat Gov: •Reduction in wage bill by bearing employer’s end of PPF, RBI reduction of repo rates, easing liquidity and loan interest rates, Lifting of restrictions from certain rural and semi-urban enterprises from April 20th. Special focus on manpower-intensive sectors
— Sharon Buteau (@sharon_buteau) April 16, 2020
What are various digital tools to ensure business continuity? Use #GAMEChat and share your answers in the comments below. @_mekin @sharon_buteau @Sairee @ChampacaBooks @DoegarAniket @DalbergTweet pic.twitter.com/HHVdI1wL3G
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
#GAMEChat
— Mekin (@_mekin) April 16, 2020
Huge opportunity here..
Besides generic platforms like Whatsapp, Phonepe - very few tools currently being used at scale
Lots to learn from Tally.@udaandotcom is a saviour.
Good to see likes of @KhataBook & @_okcredit
But SO MUCH MORE CAN BE DONE.
Business continuity in these times means seamless communication - thankfully there are lots of easy to use tools making that happen. Business visibility is another - tools like @FloBizOfficial make it easy for MSME's to track business minus complexity #gamechat
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
Sharing something on some digital initiatives we are running for the community - #remotework #sheco #helpline https://t.co/JTxhpaW0fv#gamechat
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
Even as non technologists, we were able to use @squarespace, @Razorpay, @Shopify, @MemberstackApp and @stripe to start building our online presence. What other tools are relevant to small businesses like ours?
— Champaca (@ChampacaBooks) April 16, 2020
#GAMEChat Working virtually and tools associated with that are going to become a reality of how we operate. These also have to support our local Indian languages.
— aniket doegar (@DoegarAniket) April 16, 2020
#GAMEChat We also need to have digital transactions at speed and have everyone adopt the digital signature infra which will help in quick payments and advance. Tools to help share the work done by MSMEs on social media is also the need
— aniket doegar (@DoegarAniket) April 16, 2020
#GAMEChat Some of the platforms - @Shopify @FBBusiness @WhatsApp @webflow @instamojo @NowFloats If relevant, even listing your store on @AmazonBusiness @DunzoIt @swiggy_in @Zomato
— Leena Soni (@leenasoni_) April 16, 2020
@Facebook @WhatsApp @MSKaizalaApp opportunity for digital tools to truly transform small businesses. #GAMEChat https://t.co/IKnTCfUCfk
— Sandhya Thukaram (@sthukaram) April 16, 2020
We’re leveraging our alliance of supportive partners and setting up a $100 million fund to maintain a steady cash flow for the survival of small establishments. If you have other suggestions, use #GAMEChat and let us know in the comments below. @Sairee @DoegarAniket pic.twitter.com/23l7ouY6hc
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
#GAMEChat
— Mekin (@_mekin) April 16, 2020
Game is setting up a $100M Small business stabilisation fund, aimed at refinancing small businesses to ensure survival & faster bounce back.
#gamechat Great initiative. Lot of outreach and communication - across local communities would be great. An MSME support helpline with experts sharing resources, responding to FAQs and making sure field orgs can do a lot of base work would help too
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
We just launched a helpline!@PriyadeepSinha #GAMEChat
— Mekin (@_mekin) April 16, 2020
#GAMEChat There's a great opportunity for the discussions Haqdarshak is having with @GAMEIndia2 for a resource bank on schemes and government services for MSMEs which hopefully we will be able to scale nationally soon
— aniket doegar (@DoegarAniket) April 16, 2020
this a link to some of the ongoing initiatives to support small business recovery https://t.co/oGjRp7CXPz happy to collaborate in any way. #GAMEChat @_mekin @PriyadeepSinha @GAMEIndia2
— Sandhya Thukaram (@sthukaram) April 16, 2020
We are contextually curating #GameChat conversations @ https://t.co/ZTwqoB8CiM
— Jatin Chaudhary (@jatin10) April 16, 2020
For those who prefer the more traditional forms of reading ...
— Mekin (@_mekin) April 16, 2020
or who just missed the #GameChat https://t.co/QkV9bd3WQF
Use #GAMEChat and leave your suggestions in the comments below. @Sairee @_mekin @ChampacaBooks @sharon_buteau @DoegarAniket @DalbergTweet pic.twitter.com/X79vYN0nYV
— G.A.M.E. India (@GAMEIndia2) April 16, 2020
#gamechat Shared purpose and viable economics for everyone in the chain. Federal central models are not set up for collaboration. Small wins for everyone are important. The interchangeability of givers and takers makes a robust collab ecosystem.
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#gamechat We had love to work on building special access for women entrepreneurs, micro entrepreneurs, self employed and MSMEs.
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#gamechat We need the big companies and startups on this too. We need the Fortune 500s and conglomerates to consciously own this and share their might towards enabling MSMEs. It cannot be done in isolation. We need to hold everyone accountable
— Sairee Chahal SHEROES (@Sairee) April 16, 2020
#GAMEChat Offer what you can, ask what you need!
— Leena Soni (@leenasoni_) April 16, 2020
I believe #60Days60Voices is a great place for organizations and individuals to do that - we are already seeing a lot of our partners share their needs and some very strong collaborations emerging out of this.