UNDP’s Noda calls for new business model
FICCI President Dr Sangita Reddy has called on the government to support MSME sector which has been severely impacted by Covid-19, affecting 110 million jobs.
“There are around 110 million people in MSMEs who are affected due to Covid-19. We need to give them interest free, collateral free loans and guaranteed by the government,” said Reddy on 4 May 2020.
Companies with less than Rs.500 crores turnover should be given interest free support for minimum of six months and hopefully for 12 months, said Dr Reddy at a webinar to discuss the impact of Covid-19 on MSMEs and business continuity in India.
“MSME sector needs envision, partner, train, handholding, and support which will help create a vibrant sector. The entrepreneurship, skillset and hard work of this sector are India’s biggest strength and we should ride on that strength,” Dr Reddy stressed.
UNDP India Resident Representative Shoko Noda stressed upon the need to have a new business model with sustainability, climate change and focus on women entrepreneurs.
“If we incorporate them in business, we will become much more resilient towards the society,” she said.
In India, over 14% of the MSMEs are owned by women which has the potential to grow further, Noda noted.
“The new eco-system gives more opportunities to women entrepreneurs to enter into business,” she said.
GAME Founder Ravi Venkatesan, addressing the same webinar, noted that many of the companies have started adapting to the crisis, and better run companies are taking all prudent steps.
“Post crisis, these companies will emerge more resilient,” he underlined.
“Capital is going to be precious and we need to protect workers.
“We need to use this crisis into opportunity in order to start businesses. We need to create massive wave of entrepreneurship,” stressed Venkatesan.
FICCI CMSME Committee President Sanjay Bhatia noted that the government is trying to balance the lives and livelihood.
“It is important in the short-term to preserve the business. There is a loss of skill today due to migrant labours. MSMEs need more of short-term measures than long-term,” he said.
FICCI jointly with UNDP, Facebook, Josh Talks and Global Alliance for Mass Entrepreneurship, organised the webinar. fiinews.com