More than 70 percent of micro, small and medium enterprises (MSMEs) and 40 percent corporate are planning to sack their employees in a bid to bring their business back on track, said a survey by All India Manufacturers Organisation (AIMO). The MSME sector is going through tough times due to the outbreak of Covid-19 pandemic.
The survey has also covered several aspects likely to be faced by the sector during the Unlock 1.0 such as visibility of demand, collection of pending dues, raw materials, future EMI payments along with present interest burden and salary issues.
K E Raghunathan, immediate past president, AIMO said, “The extent of the job loss will be more clearer by the end of August’20 , as most of the respondents were in process of gauging how many of their labour will return and also they are currently gauging the optimum employee strength required to sustain their business in the near future.”
Among the surveyed people, 36 percent of self-employed stated that their biggest concern is pertaining to their ability to pay EMIs as they had issues with pending collections for work done earlier and also the receipt of new orders and profitable prices for the business.
It also shed light on the concerns faced by the corporates such as manpower concerns, raw materials sourcing and price management, and demand in terms of new orders dominating their set of challenges for the next three months.