Micro, Small and Medium Enterprises (MSMEs) play an important role in the global economy including  in India. The sector contributes significantly in terms of GDP, exports, manufacturing output, employment, etc. However, with increasing globalization, world class competitiveness is needed to integrate into global and domestic value chains so that benefits can reach deep down the value chain. It is also true that, today, competition has gone beyond the individual enterprise or cluster level and even global value chains are competing with each other. Indian MSMEs are to enhance their competitiveness and sustainability and offer greater value to their partners to benefit from national and international trade.

The COVID-19 crisis impacted heavily on businesses, particularly MSMEs. As per various surveys, up to one third of MSMEs report to be on the verge of closing operations or have already shut down. In order to reinvigorate or build back business from this crisis, the aspects of occupational safety and health (OSH), manpower planning (including skill upgrading), production planning and supply chain management are undoubtedly essential to MSMEs. Coupled with these aspects, diverse sourcing, digitization, skilled labor, manufacturing competitiveness and quality improvement will enable stronger, smarter, dynamic & flexible supply chains, and ensure a lasting recovery as well as crisis proofing and sustainability. Moreover, MSMEs need to practice Responsible Business Conduct (RBC), in areas of governance, environment, labor, community and fair business practices to access business opportunities in global value chains.

The lack of business and sales during lock down period stopped business income whilst some expenses continued. This caused a cash crunch in business. Finance had already been one of the biggest challenges to MSMEs in India (and elsewhere), which has now worsened seriously. Many MSMEs find themselves on the brink of staying solvent amidst lockdown and upon gradual lifting of restrictions, and the high uncertainties moving forward. Markets are stalled with disruptions in both upstream and downstream supply-chains. There are serious cashflow implications for businesses, such that the full impacts will only be understood in months to come. As money is tight, prioritizing is a must. Industries needs to make sure to spend on things that matter most for sustaining business in an incremental manner in the immediate future. Effective approaches would include increasing and speeding up income, while simultaneously decreasing and slowing down expenses to alleviate the immediate cash flow concerns. Scrutinization and prioritization of ongoing and planned expenses and incomes is the need of hour to stabilize the cash flows of your business.

In the above backdrop, National Productivity Council and United Nations Industrial Development Organization (UNIDO (Regional Office- India), are jointly organizing a information sharing and discussion on ‘Leveraging MSME Financing for Post COVID Revival’. The training session will be undertaken by

MSME technical and finance experts who have extensive knowledge in the domain area. It would focus on key areas where support is required by the MSME ecosystem, viable solutions along with implementation strategy to enable enhanced competitiveness and resilience of MSMEs. Besides, case studies on best practices will also be covered as to how MSMEs could adopt and customize some of the processes for leveraging the opportunities that are available in India

Agenda