81% SMEs confident of recovery post Covid, 57% have no cash reserve: Survey

Madan Padaki, co-founder of GAME, said Covid-19 has left a devastating impact on the Indian economy, especially micro-enterprises that comprise around 99 per cent of all firms in India

Despite several businesses remaining closed during the lockdown, 81 per cent of micro-enterprises polled are confident of a recovery post Covid-19 whereas 57 per cent reported not having any cash reserves to survive, according to a survey.

Initial results of a six-month survey that is underway by GAME (Global Alliance for Mass Entrepreneurship) in association with LEAD at Krea University covering 1,500 micro-enterprises also reveal that 40 per cent tried to borrow money to cover expenses.

However, only 14 per cent of the overall borrowing was from formal borrowing sources.

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