4 out of 5 small businesses hope survival despite Covid spread; see consumer spending back in 3 months

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September 23, 2020 6:12 PM

Ease of Doing Business for MSMEs: Majority consumers are likely to prioritise shopping from local shops or small businesses to help them overcome the Covid impact.

Four out of five merchants believe their business will survive even if the pandemic increases in their region.

Ease of Doing Business for MSMEs: Indian small businesses remain positive about surviving the current Covid and lockdown-induced business downturn despite facing headwinds for around six months now. 80 per cent of a sample group of 300 small business decision-makers based on an American Express India survey earlier this month are optimistic about surviving the pandemic while four out of five small businesses believed their business will survive even if the pandemic increases in their region. Moreover, 71 per cent claimed confidence in the measures taken by them to gain consumer trust. For instance, 37 per cent increased their efforts to advertise on social media while 34 per cent adopted contactless delivery route. Moreover, 44 per cent enhanced in-store safety measures and 40 per cent endorsed non-cash payments among the ways to bring back consumer trust.

The survey was conducted by the UK-headquartered market research and data analytics firm YouGov involving over 1,000 consumers as well, 63 per cent of whom are optimistic about returning to their pre-COVID shopping habits in the coming three-six months. “Interestingly, our survey reveals that 70 per cent of consumers are likely to prioritize shopping from local small businesses as they open. While people are starting to head out again, small businesses are still facing the challenge of getting consumers to return at the levels they need,” said Manoj Adlakha, SVP and CEO, American Express Banking Corp India.

Also read: DPIIT says there’s no data on startups’ contribution to GDP, number of shutdowns due to Covid

42 per cent small businesses owners expect consumer spending to return in the coming three months for their businesses to stay afloat. The survey also claimed that 70 per cent of the consumers surveyed are likely to prioritise shopping from local shops or small businesses. “Use of sanitizer, masks, temperature screens, contactless payment options by the local shops or small businesses top the list of consumers to shop small,” said the statement by American Express. The company has been running an international movement called Shop Small to encourage shoppers to support small businesses in the recovery path.

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