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Lockdown blues: Small businesses in doldrums

After the lockdown came into effect in the State, several small entrepreneurs have faced huge losses owing to production coming to a grinding halt. But that has not deterred them from paying their staff and workers. In fact, many have managed to pay their workers in advance for 21 days despite the losses staring at their faces.

Lockdown blues: Small businesses in doldrums
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Chennai

However, hope remains that the lockdown would end soon. But many entrepreneurs are scared that in the event of it being extended further, they are bound to face severe cash crunch as they have spent all their money, including their savings, in paying the workers. Many express fears over managing the remaining days without any business.

Siva Priya N, who runs a tailor shop in Tiruvottiyur, said, “Usually, we pay the staff on a daily basis. But after the lockdown, we couldn’t do anything as the materials are locked in at the shops. Last month, we got a few orders for a wedding and as it has been cancelled now. The customers have been asking us to return the materials but we are unable to even open the shop fearing the imposition of Rs 5,000 as a penalty by the police. For people like me, who depend on daily income to even pay the staff, life has turned pathetic. I mortgaged my jewellery to survive these 21 days.” Even the provisional shops are running out of stocks and do not have enough workers. Their business has fallen considerably in the past three weeks. But many still paid their workers to help them tide over the crisis.

“After the lockdown was announced, all workers left to their hometown and we paid them Rs 5,000 to Rs 10,000 each. I have been managing the store alone for the past three weeks. The stocks in the shop will be over in three to four days and with no supply, I would have no choice but to close the store. Many provisional store owners like me are clueless as to how we are going to survive without income,” said V Murugesan, owner of a provisional store at Royapuram.

The situation of cottage industries across the State is also no different with them forced to down their

shutters after paying their staff for 21 days. “We have given an advance to our workers. Usually, such advance payment would be deducted from their salary, but this time that won’t be done. If the lockdown is extended, it would be difficult for them and us. As there is no truck service, the supply from other states has stopped,” said Usha Rani B, JV Natural foods and herbs manufacturing palm sugar company at Tiruchengode in Namakkal district.

The proprietor of a ‘chikki’ (groundnut candy) manufacturing company at Kariapatti in Virudhunagar district said there is no point in keeping the unit open as there is no supply of raw materials.

“If the lockdown extends, we don’t know how we are going to manage,” said Stalin B, Motherway Traditional Sweets and Snacks

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