Nearly half of the country’s small businesses have run out of cash or are close to doing so, as the unprecedented drop in demand due to the extended coronavirus-led lockdown forced them to sustain into their own reserves, reveals a recent survey.
The survey conducted by community platform LocalCircles, that included around 7,000 businesses such as start-ups, small and medium enterprises (SMEs) and entrepreneurs around the country, reported that 47 percent of them have either already run out of cash or have less than a month of savings before they exhaust their funds. The survey report was shared exclusively with ET.
The survey revealed that about 24 percent of respondents responded saying that cash reserves to sustain their businesses for the next one to three months, while 23 percent said they can sustain themselves for between three to six months.
Only 6 percent of respondents said their cash reserves will last till six months at the current rate of burn.
Responding on how the lockdown will impact their businesses, 61 percent of the respondents of the survey said that 13 percent are considering shutting down completely.
Only 13 percent of respondents said they are looking at growing their business in the current scenario.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
