Tuesday, September 22, 2020
Home BUSINESS Corona Impact - Startups and SMEs Want To Close Businesses

Corona Impact – Startups and SMEs Want To Close Businesses

Startups and small and medium enterprises (SMEs) have cut marketing expenses, manpower, and operating costs in the last three months due to coronavirus. Despite this, 14 percent of startups and SMEs are considering shutting down their businesses altogether. This has been revealed in an online survey by the community social media network LocalSircles.

35 percent expected growth in business

LocalSircles has done this online survey on 28,000 startups, SMEs, and entrepreneurs in the country. 16 percent of startups and SMEs are not sure about the future. He has only cash left to run the business for three to 6 months. However, 35 percent of the startups and SMEs surveyed are expecting growth in their business.

80 percent cut fix cost

The survey by LocalSircles stated that 80 percent of startups and SMEs have cut their fixed costs. Startups have made this cut to keep the business running and to do business on a low budget. According to the survey, travel and mobility-related start-ups have been more affected due to the nationwide lockdown and restrictions on movement from one state to another. Over the past two months, several startups have fired employees, including MakeMyTrip, Udaan, Swiggy, Zomato, Lendingkart, Ola, Curefit, WeWork India, Sharechat, and Uber India.

Higher Income Tax To Be Paid Even During Work From Home in Corona Crisis

38 percent of the funds have ended

Twelve percent of the firms surveyed said that they now have only one month left to run the business. At the same time, 38 percent say that their fund is already exhausted. Four percent of firms said they had already closed their business due to declining revenue in the lockdown. The revenues of many SMEs and startups have fallen by 80–90 percent in the last two months. In such a situation, it is becoming very difficult for them to run the business.

No success in raising funds

According to Sarva, many startups and SMEs have made considerable efforts in the past few months to raise funds, but have not been successful. The reason for this is that investors are no longer much interested in investing in startups and SMEs. Apart from this, a liquidity problem has arisen with many investors.


Please enter your comment!
Please enter your name here

Most Popular

Delhi: Transport Strike Against Amended Motor Vehicles Act, Offices and School Declare Holiday

The United Front of Transport Associations (UFTA), has called for transports strike today from 6 am to 9.30 pm. Due to transport strikes in...

Secret of Success in Business – Motivational Story

To become a successful businessman, along with adopting special abilities, there is a need to quit some bad habits. Today, getting a job for the...

How To Start a Car Washing Business in India?

How to start Car Washing Business - Friends, you must have thought about many businesses, when you thought that we should start a business....

Ways to Improve Your Business Sales?

There is no doubt in saying that sales play a vital role in business growth. To run a business successfully, you need to have...

Recent Comments