Start-Ups, SME Scramble for Cash for Discharge Hits Hard: Coronavirus

A Local Circle survey found that only six percent were covered as cash for a period of more than six months.

According to a survey by Community Forum Local Circles, the heat of business disruption is being felt in India with coronavirus and subsequent lockdowns, start-ups, and the expected decline in small and medium enterprises (SMEs).

The survey received over 13,970 responses from start-ups and SMEs in 90 districts.

It was found that for a period of more than six months, only six percent were covered in terms of cash. 23 percent said the available migration was between three and six months while for 24 percent, the remaining cash would remain for only one-three months.

20 percent said their cash would last less than a month, while 27 percent had already run out of funds. Outlook for business Asked what was happening in the next six months for their respective businesses, 61 percent said they were planning on a larger scale. 13 percent said they would develop, as they said, the number would stop. Seven percent also said they wanted to sell their business.

According to several reports, unicorns in India’s start-up ecosystem, such as Facebook-backed Misho and UDAN-heavy capital players, have banned regular activities. seeking help Last month, start-ups and SMEs through local boards presented various demands to the government to overcome the crisis. Demands include 50 percent employee salary for a month or a lump-sum INR 20 lakh grant for those registered with the government.

There were some other demands from public service units, large corporates, and the government to expedite payments, initiate the process of TDS refunds for the last financial year within 15 days, and deploy CSR funds to start-ups.

Earlier in April, a number of start-up founders, venture capitalists and other stakeholders sent a joint letter to Indian Prime Minister Narendra Modi seeking help for six months’ salary, interest-free loans, and tax benefits among other things was.

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