71 pc MSMEs Optimistic about Business Growth in July-Dec
71 pc MSMEs Optimistic about Business Growth in July-Dec

71 percent of the MSMEs are optimistic about growth in the remaining six months of 2022 and only 5 percent of MSMEs expect a dip in this time frame.

The 2022 Mid-Year MSME Business Sentiment Survey by fintech firm Khatabook also found that the first six months of 2022 have been growth positive for Micro, Small, and Medium Enterprises (MSMEs) across all categories and regions.

According to the survey, MSME ecosystems in all the states are growth positive, with Telangana, Rajasthan, Maharashtra, and Gujarat being at the top. All the categories have displayed growth, including those in negative growth in 2021, like industrial services, stationery, and home furnishing. Pharma, salons, and restaurants/eateries are the top growth categories in the first two quarters of 2022.

About 66 percent of businesses mentioned they had no significant business-related issues. In contrast, others said weak demand, credit availability and liquidity, and payment collection were some of the major concerns, found in the survey.

Of 7,295 MSMEs surveyed, 58 percent witnessed improvement in business from January to June 2022, while 14 percent of businesses saw a dip in business during the period as compared to 23 percent in the last six months of 2021.

Sentiment improved across retailers, wholesalers, distributors, and manufacturers. A major improvement was seen among wholesalers and distributors, while manufacturers saw the least improvement in sentiment index scores, the survey found.

Ravish Naresh, CEO and Co-Founder, Khatabook, said, "We are seeing a steady improvement in the actual business performance. For the next two quarters in 2022, 71 percent is a high business performance optimism score by the MSME community. I hope the actual business performance feedback in the next survey aligns with this optimism score."

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