As the global COVID-19 pandemic moves from a health crisis to an economic crisis, with adverse outcomes looming large on the economy, relief interventions will need to minimize permanent damage to lives and livelihoods. Among the many parts of the economy that require immediate attention and succor, are the micro, small and medium enterprises. The Government of India is giving relief to the MSMEs sector by providing collateral-free automatic loans amounting to Rs 3 lakh crore for the micro and small enterprises, with a moratorium on the payment for the first year. This is for those units which have Rs 25 crore of outstanding loans or Rs 100 crore of turnover. This is expected to benefit around 45 lakh units.
At this unprecedented time, many companies are also coming forward to give business support to India’s MSMEs sector in various ways to evolve and stay afloat during these times.
Here is the list of 5 companies that are giving business support to India’s MSMEs sector in various ways:
Amazon India:Amazon India has set up a special fund to support delivery service partners and transportation partners associated with the company, and provide financial aid for April. Through the one-time disbursement, the fund will support the partners in multiple ways, including enabling them to provide financial aid to close to 40,000 of their staff for the month of April, Additionally, it will help cover some critical fixed infrastructure costs, and support liquidity as well as cash flow for these businesses as they resume and scale their operations post lockdown.
Tradeindia:For almost three decades Tradeindia has been the lending hand for the MSME sector and has seen the sector from close quarters. Even before the crisis arising out of COVID-19, Tradeindia has seen several economic crises afflicting the Indian MSMEs and did what it could do to bring them out of the quagmire – and it had succeeded too – the sole reason why today it has a database of more than 5 million registered users looking up to us to take them to the finish line. This platform uses artificial intelligence (AI), real time data analytics and in-house digital tools to improve users’ search experience, design their products and generate demand for MSMEs listed on its platform. In collaboration with their lending partner, Tradeindia is also offering short term collateral-free loans to MSMEs for their operational needs and expansion. Company has also been educating small businesses across India particularly in Tier-1 and Tier-2 cities through seminars/webinars and SME workshops on how to use online collaboration tools and also provide them solutions to digitise their operations and payments, thus streamlining their operations and plugging loopholes. Tradeindia with all its innovative tools and services has been successful in helping and supporting the MSME sector as also to equip these small businesses to take their business online and expand their target markets and to establish a firm foothold in domestic and global markets.
Burgeon Law: India’s leading boutique law firm Burgeon Law is on a mission to guide the distressed stakeholders of the startup investment ecosystem. It is proactively guiding promoters and entrepreneurs on the legalities of managing the uncertainty and extension of the runway in order to tackle various issues rising up with the lock-down and its impact on the industry. As per Ms. Roma Priya, Founder of Burgeon Law, India’s MSMEs sector is the largest across the world after China. MSMEs might be considered as small investment enterprises but their contribution to the Indian economy has always been noteworthy. Our homegrown enterprises have been hit hard by the pandemic and this move by the government lays a path for liquidity infusion, thereby giving them the necessary handholding. Many of our startups are facing a crisis with the liabilities and are waiting to resume activity and engage their workforce, at least for the next quarter.
Vistaprint India: An e-commerce platform for customised printing services for individuals and small business owners, Vistaprint is striving to help small businesses to get back on their feet. A Cimpress company, Vistaprint is the leading destination for customized printing products for small business owners, empowering them to create a professional identity of their own. With over 2 lakh designs, Vistaprint offers a wide selection of category-leading products and printing services including visiting cards, letterheads, and stationery for businesses and products like coffee mugs, calendars, books and clothing for individuals. The company manufactures all its products locally with the help of local workers and employees to support the MSMEs; market their business. In a way Vistaprint acts like a marketer for the marketeers.
Crediwatch: India has more than 50 million small and medium enterprises that face the problem of liquidity crunch. Out of which only 15% of them get access to formal credit due to the trust deficit that exists and they lack collateral. They find it to be “risky investment”. And for the ones who get access to formal credit, they have to wait for 4 to 6 weeks to get their loan processed at a staggering rate of 16% – 24%. This scenario creates a debt financing gap of 1 trillion dollars in the market and hence these small and medium enterprises are under-banked and underserved. This platform comprehended the gaps in the market and envisioned a solution that the loan deficit only can be addressed if the lenders have valuable data-points of these small and medium businesses in order to bank them. Crediwatch is an information intelligence platform providing big data risk analysis to corporates, helping them in the process to deploy intelligence while making credit decisions.
The Company provides ‘Data Insights-as-a-Service’ to enable lenders, businesses with actionable credit intelligence on private entities to improve trust and increase their lending and trading activity. Because of our cloud-based platform, services can be consumed by any one from any part of the country. Leveraging over 18 million risk profiles of large companies and unregistered small businesses, the platform is designed to deliver incisive insights across the credit lifecycle right from pre-disbursal decision through its Digital CAM to post-disbursal monitoring via Early Warning System (EWS). The platform aims to provide lending institutions, corporates (large, MSMEs, SMEs and small business entities) the ability to manage and raise credit efficiently.