Covid-19 has impacted the Trade, Business, and Industry very badly. This has further impacted the Micro Small Medium Enterprises (MSME) and the aftereffects are already seen.
In the context of our economy, the relevance and contribution of MSMEs is very vital and impactful. MSME contributes 30 to 35 % to the national GDP. As mentioned by the well-known business consultancy firm KPMG, MSME constituents 36 % of our business-31% of the manufacturing and 33 % of other types of business activities. Hence it is important to think about the MSMEs in a post- Covid-19 world.
The last quarter of the business year is always very crucial from the business transaction and turnover of all the enterprises including the MSMEs. This is the way and manner our business cycle has been operating for decades. The effects of Covid-19 therefore become much relevant. As far as MSMEs are concerned, and to put it in a rural perspective, this situation can be compared when the farmers lose their ready to cut crop due to storm and heavy rains and the effect lasts at least for the next financial year.
Paving the progress through the “P4” approach
“P4” approach for revisiting and revival of the business of MSMEs post- Covid-19 : While reviving post -Covid-19 the MSMEs need to assess and ascertain as to how much and to what extent they are impacted at the business level and then to formulate their action plan in a timely basis. This exercise of revisit to revive the business at the enterprise level would enable us to generate and execute the business in a new context.
The above exercise must focus on vital issues such as business impacts the unit had on a short-term and long-term basis, the strategic and operational changes required, and executed with reference to business potential, strategy, production, or services leading to implementation and execution at the enterprise level. The “P4” approach customized for MSME and comprising of Projecting, Planning, Preparing, and Performing thus can prove to be useful in this regard. The latest classic example of Maruti and Mahindra the well-known car manufacturing companies shifting their planning and priority to manufacture ventilators speaks for itself.
The way forward and business beyond Corona
Going forward, adopting and implementing requisite types of changes and business priorities shall be essential as a part of their business. The adoption, implementation, and methodology need to be customized to the MSME, its business, product and changing requirements of the business. This approach would certainly prove the game-changer for them in multiple areas.
(Mr. Ambulkar is an HR-Management and Entrepreneurship Development Consultant at Involve2Resolve HR Services Pvt. Ltd. Pune. This is an edited excerpt from the article that appeared in the November 2020 edition of Sampada, the monthly magazine of MCCIA. The complete issue of Sampada can be accessed at https://www.mcciapune.com/media/Publication/Publication_File/final_Oct_-_Nov_Diwali_Issue_2020_2.pdf )