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Start-ups ‘lock’ with no key in sight
About 38 pc startups are starved for funds while 30 pc have back up for 1-3 months, reflecting the impact of lockdown on fledgling businesses, as per a survey
By
migrator
migrator
Chennai
But many startups may not be able to avail these benefits under the Atmanirbhar Bharat scheme even if they are registered as MSMEs. Most can’t afford to chase the paper work and loans/funds for months and still sustain their business
STATE OF BUSINESS
- 16 per cent entities have 3-6 months of cash left
- 12 per cent respondents less than a month’s worth of cash left
- 4 per cent have already shut down the business due to lockdown effect
- 80-90 per cent revenue drop reported by many businesses in last two months making it hard for them to even sustain their business
CASH CRUNCH FOR SMEs/NEW VENTURES:
- From 27 per cent to 42 per cent rise (April to June 2020)
- Cutting or deferring marketing and HR costs to sustain business
- 35 per cent see growth in business in next six months
- 35 per cent to scale down operations
- 14 per cent see business getting shut down
- 16 per cent quite unsure of future
Rs 3 LAKH CR EMERGENCY CREDIT LINEVIA FORMAL STIMULUS PACKAGE
- 14 per cent gain
- 57 per cent no gains
- 29 per cent unsure about it
SOURCE: LocalCircles survey (over 28,000 responses from more than 8,400 startups, SMEs and entrepreneurs)
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