How COVID-19 Is Affecting Small Businesses Owners

How COVID-19 Is Affecting Small Businesses Owners

COVID-19 Is Affecting Small Businesses Owners

According to a survey conducted by an ILO SCORE Programme, the micro, small, and medium-sized enterprises (MSME) are more significant than ever in helping out small businesses in these times of crisis. The covid-19 has made the continual employment of small businesses tough these days, and acquiring an MSME certificate has become very important for letting the business sustain and profit.

The MSME has been providing training to the small business owners giving them strategies to keep on making a profit and also sustain in these times. MSME has also been constantly supporting the growth of such a business and has also been working nonstop to fulfill all their needs and requirements.

What is MSME?

The MSME full form is a Micro, Small, and Medium enterprise. It is the only sector responsible for continuously supporting the economic section of a developing country like India. That is the sole and primary contribution to India’s employment, export and imports, and manufacturing in India.

It is always better to get an MSME certification if you have a small business to smooth running and processing your business. It will not only legalize your business but also help in acquiring a good profit from it. The MSME is responsible for 45% of the total industrial employment in India.

Which type of business is eligible to obtain the certificate of MSME?

Although MSME brings about many added benefits for a company, not every company can register itself for an MSME certificate. According to the MSMED (Micro, Small, and Medium Enterprises Development act, 2006, the eligibility criteria for registering your company for an MSME certificate are:

  • For the manufacturing sector:

  1. If it is a micro-enterprise and the investment amount does not exceed Rs. 22 lakh.
  2. If there is a small enterprise and the investment amount goes above rs. 25 lakh but does not exceed rs. 5 crore
  3. If it is a medium enterprise and the investment amount goes above Rs. 5 crores, it does not exceed Rs. 10 crores.
  • For the service sector:

  1. If it is a micro-enterprise and the investment amount does not exceed Rs. 10 lakh.
  2. If there is a small enterprise and the investment amount goes above Rs. 10 lakh, it does not exceed Rs. 2 crores.
  3. If it is a medium enterprise and the investment amount goes above Rs. 2 crores, it does not exceed Rs. 5 crores.

How to register for MSME online?

It is very easy and beneficial to register yourself for the process of MSME. MSME registration is a very smooth and hassle-free process and does not require much effort. The steps to get your company ca certificate of MSME are:

  • Open any website that allows the registration of MSME certificates online. Fill in all the required criteria of the form correctly.
  • Submit the filled application on the website by clicking the submit button.
  • Once you submit the filled form, you will be receiving a 12 digit registration number.
  • Now you have to pay the minimal registration fee online for the process.
  • As soon as the payment is made, the registered business gets MSME certified in 1-2 working days.
  • Once the company is registered as an MSME-certified company, the applicant receives the certification through the registered email id.

How is covid19 affecting small business owners?

As part of MSME day, 2020, more than 1000 small business companies from over eight countries and over from four continents participated in a survey. The survey states that about 70% of the companies and their operations have been shut down. However, the other part is going through an on and off of their employment and manufacturing process. Sustainability and profit-making have become the most difficult for small business owners.

Almost 50% of the companies shut down their operations due to what the authorities ordered. The other half had to temporarily close their operations because of the reduced number of orders received. In some companies, more than half of the working members and the staff have been infected with the virus, and some of them had to quit because of the risk involved in working during these times, which is why they had to quit the company. The strategies made by MSME training have been helping such small businesses in surviving, which is why it is more important than ever to get your company registered for the MSME certificate.

 

 

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