UNIVERSITY OF MUMBAI

“A STUDY OF IMPACT OF COVID-19 PANDEMIC ON THE

PROFITABILITY OF SMALL SCALE BUSINESS IN
MUMBAI”

A Project Submitted to
University of Mumbai for partial completing of Degree of

MASTER OF COMMERCE
(ACCOUNTANCY)
BY
MR. MANISH PRAKASH LAD
ROLL NO. 38
SEMESTER III

UNDER THEGUIDANCE OF
DR. SAMRAT. A. GANGURDE

Parle Tilak Vidyalaya Association’s

M.L. DAHANUKAR COLLEGE OF COMMERCE
DIXIT ROAD, VILE PARLE(E)
MUMBAI-400057
DECEMBER 2023
 CERTIFICATE

This is to certify that Mr Manish. Prakash Lad has worked and duly
completed his project work. For the degree of Master of Commerce under the
Faculty of Commerce in the Subject of (Accountancy) under the faculty of
Commerce and his project is entitled, “A Study of Impact of Covid-19
pandemic on the profitability of small scale business in Mumbai”. under my
supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any
Degree or Diploma of any University.

It is her own work and facts reported by her personal findings and
investigations.

Date of Submission:

Name and Signature of

Guiding Teacher

Signature of Principal:

Signature of Co-Ordinator:

College seal:
 Declaration by learner.

I undersigned Mr.Manish. Prakash Lad here by, declare that the work
embodied in this project work title “A Study of Impact of Covid-19 pandemic
on the profitability of small scale business in Mumbai ” . Form my own
contribution to the research work carried out under the guidance of Dr. Samrat
A. Gangurde and the result is of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to
this or any other University.

Whenever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this documents has been
obtained and presented in accordance with academic rules and ethical conduct.

Manish Prakash Lad

Name and sign of the learner

Certified by
Name and signature of Guiding Teacher
 Acknowledgement

It is pleasure to acknowledge many people who helped me, to complete my

project work. I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project

I would like to thank my Principle, Prof Dr. Kanchan Fulmali for providing
the necessary facilities required for completion of this project.

I take this opportunity to thank our coordinator Dr. Samrat. A. Gangurde

for support and guidance.

I would also like to express my sincere gratitude towards my project guide Dr.
Samrat. A. Gangurde whose guidance and care made this project successful.

I would like to thank my College Library, for having provided various reference
book and magazines related my project.

Lastly, I would like to thank each and every person who directly and indirectly
helped me in the completion of the project especially my Parents and Peers who
supported me throughout my project.
 INDEX

PAGE
SR NO TOPICS NO

CHAPTER1

INTRODUCTION

1.1 Small Scale business in covid-19

1.2 Small scale business meaning & characteristics
1.3 Meaning of Profitability
1.4 Small business challenges to adapt to the ongoing crisis.
1. 1.5Key issues and COVID-19 impacts.
1.6 Estimations of impact of corona virus 1-19
1.7 Efforts taken by the government to uplift MSME
Industry after COVID 19
1.8 Impact on covid-19 on small scale industries
1.9 Some Positive impact of COVID- 19 on small scale
industries:-

CHAPTER 2

REVIEW OF LITERATURE
2 20-33
2.1 Review of Literature
2.2 Research Gap

CHAPTER 3

RESEARCH METHODOLOGY

3.1Objective of the Study

3.2Hypothesis of the Study
3.3Scope of the study 34-37
3 3.4 Sources of data
3.5Sample size
3.6Sampling method and statistical tools
3.7 Limitation of the study
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4 38-58
4.1 Analysis and Interpretation
4.2 Hypothesis Testing

CHAPTER 5

CONCLUSION
5 59-61
5.1 Findings of the study
5.2 Suggestion and Recommendation
5.3 Conclusion

6 REFERENCES 62-63

7 WEBLIOGRAPHY 64

8 APPENDIX 65-67
 CHAPTER 1
INTRODUCTION

1.1 Small Scale business in covid-19

The COVID-19 pandemic, an unprecedented global health crisis, emerged in late 2019 and
swiftly evolved into a multifaceted challenge that transcended boundaries, affecting nearly
every facet of human life. Beyond its devastating health implications, the pandemic sent
shockwaves through the global economy, altering the landscape of businesses both large and
small. The city of Mumbai, a bustling economic hub and the financial capital of India, was
not exempt from the far-reaching ramifications of this crisis.

Small-scale businesses, often the lifeblood of local economies, found themselves at the
forefront of economic vulnerability during the pandemic. These enterprises, characterized by
their modest size and resource constraints, confronted a myriad of challenges as they
navigated the uncertainties imposed by lockdowns, supply chain disruptions, and shifting
consumer behaviors. Consequently, the profitability of these small-scale businesses came
under scrutiny, as they grappled with operational disruptions, reduced demand, and an
uncertain business environment.

This study seeks to shed light on the profound impact of the COVID-19 pandemic on the
profitability of small-scale businesses within the bustling metropolis of Mumbai. With its
densely populated neighborhoods and vibrant markets, Mumbai's small-scale businesses
represent a diverse array of industries, from retail and hospitality to manufacturing and
services. Understanding how these businesses fared during the pandemic not only provides
valuable insights into their resilience but also offers important implications for local
economic recovery efforts.

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In this context, the study's objectives are twofold. First, it aims to comprehensively assess the
financial impact of the COVID-19 pandemic on small-scale businesses in Mumbai by
scrutinizing key profitability metrics, including revenue, net income, and profit margins,
during the pandemic period in comparison to pre-pandemic times. Second, it endeavors to
identify the pivotal factors that contributed to the observed changes in profitability among
these businesses. This exploration encompasses an examination of government interventions,
evolving consumer behavior, and the adaptive strategies adopted by small-scale
entrepreneurs.

The findings of this research hold significance not only for business owners and
policymakers in Mumbai but also for small-scale enterprises worldwide facing similar
challenges. By elucidating the experiences and lessons learned from Mumbai's small-scale
businesses during this extraordinary period, this study contributes to a broader understanding
of resilience and adaptability in the face of unforeseen crises.

As we delve into the intricacies of Mumbai's small-scale business ecosystem, this study
endeavors to provide a nuanced perspective on the interplay between crisis, adaptation, and
profitability in the context of the COVID-19 pandemic.

COVID-19 is shuddering the world economy and it is a pandemic making a giant distractions
to life and livelihoods as well as social and economic systems in the world. Based on
different reports, it is the most horrible global crisis since WW II. Tis virus is highly
transmittable and has spread with inconsistent progress in every corner of the world without
any variance. COVID-19 is a massive health crisis BUT also much more. It is a systemic
shock with profound implications, both in the short- and medium- to long-term. Tis virus has
triggered a substantial short-term economic contraction, shuttered many firms, whether big or
small, thrown tens of millions out of work, and has other effects on business activities. To
prevent unemployment, poverty, and food insecurity rates from further skyrocketing during
any time, small and medium enterprises around the globe can and should play a crucial role.

2
Small businesses are the backbone of any economy, and with the ripple effect of COVID-19
on economies all over the world, their protection has become important more than ever. Since
the first case of pandemic surfaced in Ethiopia, the government has been taking various
sweeping health and economic measures to mitigate its impact. Recognized by the
government as a driver for economic growth and job creation, small businesses, or more
commonly referred here as small and micro enterprises as the lexicon goes, the sector has
been growing steadily for the past decade or so.

Since 2020, the outbreak of the COVID-19 crisis has caused a great deal of social and
economic damages to micro and small-scale enterprises (MSEs). This research examined the
most common damages of this crisis in active and inactive rural MSEs and also assessed
different kind of responses the managers and owners of theses MSEs have received dealing
with these damages. The sample population of this study consisted of all managers of 72
active and 38 closed rural MSEs in the Dastjerd village, Hamedan, Iran. These MSEs were
mainly garment small factories. This research utilized a mixed approach (quantitative-
qualitative) to study the research objectives in depth. First, in qualitative part, semi-
constructed interviews and field visits were done.

Then, using quantitative, results of the qualitative section, previous studies and the existing
literature, a researcher-made questionnaire was created. Based on qualitative part information
through interviews, damages of rural MSEs during COVID-19 pandemic were categorized
into three classes, including damages related to production, and financial and marketing
issues. Also, two categories of managers' responses that could be labeled as passive and
adaptive behavior were identified.

Findings showed that active rural MSEs have taken more adaptive measures and tried to find
appropriate ways to reduce or overcome damages. Active MSEs were mainly owned and
managed collaboratively by more literate and experienced managers. Also results revealed
that rural MSEs' managers reacted to different kinds of damages based on their ability,
knowledge, and experience. Based on research results, managers' knowledge and skills can
help them find more adaptive solutions to keep the firms stable and overcome damages. It can
be concluded that COVID-19 pandemic has a great impact on rural MSEs and they need
more financial support and managerial advice to overcome this kind of crisis situation.

3
The economic impact of the COVID-19 pandemic in India has been largely disruptive. India's
growth in the fourth quarter of the fiscal year 2020 went down to 3.1% according to
the Ministry of Statistics. The Chief Economic Adviser to the Government of India said that
this drop is mainly due to the coronavirus pandemic effect on the Indian economy. Notably,
India had also been witnessing a pre-pandemic slowdown, and according to the World Bank,
the current pandemic has "magnified pre-existing risks to India's economic outlook.

The World Bank and rating agencies had initially revised India's growth for FY2021 with the
lowest figures India has seen in three decades since India's economic liberalization in the
1990s. However, after the announcement of the economic package in mid-May, India's GDP
estimates were downgraded even more to negative figures, signalling a deep recession. (The
ratings of over 30 countries have been downgraded during this period.) On 26
May, announced that this will perhaps be India's worst recession since independence. State
Bank of India research estimates a contraction of over 40% in the GDP in Q1. The
contraction will not be uniform, rather it will differ according to various parameters such as
state and sector. On 1 September 2020, the Ministry of Statistics released the GDP figures for
Q1 (April to June) FY21, which showed a contraction of 24% as compared to the same
period the year before.

Major companies in India such as Larsen & Toubro, Bharat Forge, UltraTech
Cement, Grasim Industries, Aditya Birla Group, BHEL and Tata Motors temporarily
suspended or significantly reduced operations. Young startups have been impacted
as funding has fallen.Fast-moving consumer goods companies in the country have
significantly reduced operations and are focusing on essentials. Stock markets in India posted
their worst losses in history on 23 March 2020.

• Government Action

In India the life versus livelihood debate also played out, with the government first
announcing that life would be prioritized over livelihood, which later changed to an equal
importance being given to life and livelihood. By mid-May the center was keen to resume
economic activities, while the Chief Ministers had mixed reactions.

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Prime Minister Modi announced the first 21 days of India's lockdown on 24 March. During
this address to the nation he said, "Jaan hai toh jahaan hai" ( Only if there is life there will be
livelihood).On 11 April, in a meeting with the Chief Minister's of India, the Prime Minister
said "Our mantra earlier was jaan hai toh jahaan hai but now it is jaan bhi jahaan bhi
(transl. Both, lives and livelihood matter equally)." On 14 April, another address to the
nation was made by Modi in which he extended the lockdown, with adjustments, to 3 May.

In the Prime Minister's fifth meeting with the Chief Ministers on 11 May, the Prime Minister
said that Indians must prepare for the post coronavirus pandemic world, just as the world
changed after the world wars. During the meeting Modi said "Jan se lekar jag tak"
(transl. From an individual to the whole of humanity) would be the new principle and way of
life. On 12 May, the Prime Minister addressed the nation saying that the coronavirus
pandemic was an opportunity for India to increase self-reliance. He proposed
the Atmanirbhar Bharat Abhiyan (Self-reliant India Mission) economic package.

2020
On 12 January 2020, the WHO confirmed that a novel coronavirus was the cause of a
respiratory illness in a cluster of people in Wuhan, Hubei, China, which was reported to the
WHO on 31 December 2019.

On 30 January 2020, India reported its first case of COVID-19 in Thrissur, Kerala,which rose
to three cases by 3 February 2020; all were students returning from Wuhan. Apart from these,
no significant rise in transmissions was observed in February. On 4 March 22 new cases were
reported, including 14 infected members of an Italian tourist group. Transmissions increased
over the month after several people with travel history to affected countries, and their
contacts, tested positive. On 12 March, a 76-year-old man, with a travel history to Saudi
Arabia, became the first COVID-19 fatality of India.

A Sikh preacher, who had a travel history to Italy and Germany, turned into a superspreader
by attending a Sikh festival in Anandpur Sahib during 10–12 March. Over 40,000 people in
20 villages in Punjab were quarantined on 27 March to contain the spread. On 31 March, a
Tablighi Jamaat religious congregation event in Delhi, which had taken place earlier in
March, emerged as a COVID-19 hotspot. On 2 May, around 4,000 stranded pilgrims returned

5
from Hazur Sahib in Nanded, Maharashtra to Punjab. Many of them tested positive, including
27 bus drivers and conductors who had been part of the transport arrangement.

In July 2020, it was estimated based on antibody tests that at least 57% of the inhabitants of
Mumbai's slums may have been infected with COVID-19 at some point.

A government panel on COVID-19 stated in October 2020 that the pandemic had peaked in
India, and could come under control by February 2021. This prediction was based on a
mathematical simulation referred to as the "Indian Supermodel", assuming that India reaches
herd immunity.

2021: Second wave

Timeline of the COVID-19 pandemic in April 2021

India's two waves versus Delhi's four waves in the same time period taking into account daily
COVID-19 cases
India began its vaccination programme on 16 January 2021.On 19 January 2021, nearly a
year after the first reported case in the country, Lakshadweep became the last region of India
to report its first case. By February 2021, daily cases had fallen to 9,000 per-day.However, by
early-April 2021, a major second wave of infections took hold in the country with destructive
consequences; on 9 April, India surpassed 1 million active cases,and by 12 April, India
overtook Brazil as having the second-most COVID-19 cases worldwide.By late April, India
passed 2.5 million active cases and was reporting an average of 300,000 new cases and 2,000
deaths per-day. Some analysts feared this was an undercount. On 30 April, India reported
over 400,000 new cases and over 3,500 deaths in one day.

Multiple factors have been proposed to have potentially contributed to the sudden spike in
cases, including highly-infectious variants of concern such as Lineage B.1.617, a lack of
preparations as temporary hospitals were often dismantled after cases started to decline, and
new facilities were not built,and health and safety precautions being poorly-implemented or
enforced during weddings,festivals (such as Holi on 29 March, and the Haridwar Kumbh
Mela which was linked to at least 1,700 positive cases between 10 and 14 April including
cases in Hindu seers),sporting events (such as IPL), state and local elections in which

6
politicians and activists have held in several states, and in public places.An economic
slowdown put pressure on the government to lift restrictions, and there had been a feeling of
exceptionalism based on the hope that India's young population and childhood immunisation
scheme would blunt the impact of the virus. Models may have underestimated projected cases
and deaths due to the under-reporting of cases in the country.

Due to high demand, the vaccination programme began to be hit with supply issues; exports
of the Oxford–AstraZeneca vaccine were suspended to meet domestic demand, there have
been shortages of the raw materials required to manufacture vaccines domestically, while
hesitancy and a lack of knowledge among poorer, rural communities has also impacted the
programme.

he second wave placed a major strain on the healthcare system, including a shortage of liquid
medical oxygen due to ignored warnings which began in the first wave itself,logistic issues,
and a lack of cryogenic tankers.On 23 April, Modi met via videoconference with liquid
oxygen suppliers including Reliance, SAIL, JSW, Tata Steel, JSPL, AMNS, LINDE, INOX
Air Products and Air Water Jamshedpur, where he acknowledged the need to "provide
solutions in a very short time", and acknowledged efforts such as increases in production, and
the use of rail, and air transport to deliver oxygen supplies. A large number of new oxygen
plants were announced; the installation burden being shared by the center, coordination with
foreign countries with regard to oxygen plants received in the form of aid, and DRDO.A
number of countries sent emergency aid to India in the form of oxygen supplies, medicines,
raw material for vaccines and ventilators.This reflected a policy shift in India; comparable aid
offers had been rejected during the past sixteen years.

The number of new cases had begun to steadily drop by late-May; on 25 May, the country
reported 195,994 new cases—its lowest daily increase since 13 April. However, the mortality
rate has remained high;by 24 May, India recorded over 300,000 deaths attributed to COVID-
19. Around 100,000 deaths had occurred in the last 26 days, and 50,000 in the last 12. In May
2021, WHO declared that two variants first found in India will be referred to as 'Delta' and
'Kappa'. The state of Karnataka announced a COVID-19 memorial later that spring, to honour
healthcare professionals who had succumbed to the virus.

7
On 25 August 2021, Soumya Swaminathan said that India "may be entering some kind of
stage of endemicity where there is low level transmission or moderate level transmission
going on" but nothing as severe as before, in other words India is learning to live with the
virus.

India announced a mandatory 10-day quarantine on travellers arriving from United Kingdom
irrespective of their vaccination status starting 4 October 2021 after United Kingdom also put
the same restrictions on travellers from India by not recognizing India's vaccine certificate.
On 8 October the United Kingdom opened up the restrictions on travelers from 47 countries
and locations including India.

2022
By March, India had just 22,487 cases across the country. With 58.8% population fully
vaccinated and 70% having received at least one dose opening up post-pandemic has been
steady. Buoyed by the success of its vaccination program among senior citizens, adults, and
adolescents, the vaccination program is now inoculating children in the 12-15 age group.
Further, the central government has urged state governments to end all COVID curbs except
masks and social distancing. International flights were resumed on 27 March after a gap of
two years.

1.2 Small scale business meaning & characteristics

A business which functions on a small scale level involves less capital investment, less
number of labour and fewer machines to operate is known as a small business.

Small scale Industries or small business are the type of industries that produces goods and
services on a small scale. These industries play an important role in the economic
development of a country. The owner invests once on machinery, industries, and plants, or
take is a lease or hire purchase. These industries do not invest more than one crore. Few
examples of small-scale industries are paper, toothpick, pen, bakeries, candles, local
chocolate, etc., industries and are mostly settled in an urban area as a separate unit.

8
 (https://loantap.in/blog/types-of-small-scale-businesses-that-opt-for-business-)

(https://loantap.in/blog/types-of-small-scale-businesses-that-opt-for-business-)

Small- scale industries require minimal capital but require lot of labour. Manufacturing or
service industries are examples of small size industries. Tiny scale industries are made up of
limited business that purchase things or offer services using smaller machine and a small
number of workers and employees.

The company must follow the rules set forth by the Indian government. Small scale enterprise
in India are vital to the country’s economy, and they provide a variety of opportunities for
trained workers. Small-scale industries, after all, are critical to the enonomy’s financial and
social well-being.

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 • Characteristics of Small Scale Industries

Ownership: They have a single owner. So it is also known as a sole proprietorship.

Management: All the management works are controlled by the owner.
Limited Reach: They have restricted area of operation. So they may be a local shop or an
industry located in one area.
Labor Intensive: Their dependency on technology is very little because they are dependent on
labours and manpower.
Flexibility: Because they are small, they are open and flexible to sudden changes, unlike large
industries.
Resources: They utilize local and immediately available resources. They do better utilization
of natural resources and limited wastage.

• Categories of Small-Scale business.

(1) Small Scale Industry (Before 2006)

They invest in fixed assets of machinery and plant, which does not surpass than one crore.
For export improvement and modernization, expenditure ceiling in machinery and plant is
five crores.

(2) Ancillary Small Industrial Unit

This industry can hold the status of an ancillary small industry if it supplies a minimum 50
per cent of its product to another business, i.e. the parent unit.
They can produce machine parts, components, tools or standard products for the parent unit.

(3) Export Oriented Units

This industry can possess the status of an export-oriented unit if it exports exceeds 50 per
cent of its manufactures.
It can opt for the compensations like export bonuses and other grants awarded by the
government for exporting units

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(4) Small Scale Industries Owned by Women
An enterprise operated by women entrepreneurs in which they alone or combined share
capital minimum of 51 per cent.
Such units can opt for the special grants from the government, with low-interest rates on
loans, etc.

(5) Tiny Industrial Units

It is an Industrial or a company whose expenditure on machinery and plant does not exceed
Rs. 25 lakhs.

(6) Small Scale Service and Business

It is a fixed asset investment on machinery and plant excluding land and building should not
surplus Rs. 10 lakhs

(7) Micro Business Enterprises

It is a tiny and small business sector.
The investment in machinery and plant should not exceed Rs.1 lakh.

(8) Village Industries

The industries which are located in rural areas and manufacture any product performs any
service with or without the utilization of power is called village industries.

1.3 Meaning of Profitability

What Is Profitability?

Profitability is a measurement of efficiency. It is a metric that is used to determine the scope

of a company's profit in relation to the size of the business and ultimately its success or
failure.

11
Profitability can tell key stakeholders whether a company is able to sustain its position in the
market and continue to grow. It is the extent to which a company earns a profit. There are two
parts to a company's profitability: revenue and expenses. As such, a company is profitable if
its revenue exceeds its expenses.

This metric is often expressed as a financial ratio to help management, analysts, and investors
to better understand how the company is able to earn the money necessary to cover its
expenses and other company-related costs. These ratios include profit margins and return on
equity (ROE). Another key ratio is the earnings before interest, taxes, depreciation, and
amortization (EBITDA). This ratio lets stakeholders know whether a company is financially
healthy and how it can generate revenue.

Profitability can also be used to describe a business's ability to produce a return on an

investment based on its resources in comparison with an alternative investment. To determine
the worth of a company, investors cannot rely on a profit calculation alone. Instead, an
analysis of a company’s profitability is necessary to understand if the company is efficiently
utilizing its resources and its capital.

• The Difference Between Profitability and Profit

Although the two terms are used interchangeably, profitability and profit are not the same.
Both are accounting metrics that are used to analyze the financial success of a company, but
there are distinct differences between the two. To adequately determine whether a company is
financially sound or poised for growth, investors must first understand what differentiates a
company’s profit from its profitability

Profitability is measure of a company’s ability to generate income relative to its expenses.

When a business’s revenue growth outpaces its spending and operating costs, it is said to be
profitable. Companies that are not making enough money are considered unprofitable and
must make adjustments in order to become profitable again.

12
 • Profitability is measured in two ways: accounting and economic profitability

Accounting Profitability: Accounting profitability, sometimes referred to as net profit, is the

measure of a company’s income after all expenses and taxes have been paid. It is calculated
by subtracting total expenses from total revenue generated.

Economic Profitability: Economic profitability measures the ability of a business to generate

value for its customers relative to its costs. This is measured using economic value-added
(EVA), which subtracts a company’s costs of capital from its income. Other factors like
customer satisfaction, customer loyalty, and product quality can also be used to measure
economic profitability.

Profitability is the main reason any business exists—without an excess of revenue over
expenses, it cannot survive. Companies need to continually monitor and adjust their
operations in order to remain profitable and stay ahead of the competition.

• Why Analyze Profitability?

Since profitability is a key measure of success, understanding and managing it is important

for businesses. There are several benefits to analyzing profitability:

Looking into net profitability helps companies understand their financial performance and
identify trends that can help them make better decisions.

By understanding the current state of a company’s profitability, businesses can decide

whether or not investing in a new project or initiative will yield a positive business
outcome.Breaking down the individual elements of cumulative revenue shows companies
which of their core business activities are valuable and which aren’t, driving operational
efficiency.

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1.4 Small business challenges to adapt to the ongoing crisis.

One of the biggest trends to emerge during the COVID-19 pandemic is small businesses
going online and creates different opportunities to solve many challenges. Indeed, for many
small businesses, the internet remains a lifeline, helping them to stay afoat during the
pandemic. According to Facebook’s report, in the 30 days prior to the survey fielding, 23%
of businesses reported using digital ordering tools, 16% service delivery tools, and 37%
digital payment tools. 36% of operational personal businesses that use online tools report that
they are conducting all their sales online.

However, we have also seen a lot of small businesses find creative ways to succeed during
COVID-19, from expanding into new markets to finding new ways to deliver their products
and services. At the same time, a number of large technology companies such as Facebook
and Google are creating new ways for small businesses to connect with their customers. Even
when businesses remain open, employees are experiencing financial cuts from lost
employment or fewer hours worked. It’s important to remember that any time a business
closes or has to lay of workers, it affects entire communities of people who rely on income
from jobs to support themselves, and in turn, support other local businesses and
organizations.

In the country, specially, employees working in micro, small and medium-size enterprises
(MSMEs) in the urban and rural sectors including (manufacturing, construction, trading,
retail, hospitality, and tourism), predominantly helpless children and adolescents such as
street children, workers in industrial parks who are already laid of or in danger of losing their
jobs, frontline health care professionals, Children of school-going age who are from poor,
food insecure households, groups with specifc vulnerabilities (persons living with HIV/AIDS,
persons with disabilities, older persons, the homeless), migrants, returnees/relocates and
returning migrants, Developing regional states (DRS), MSMEs in supply chains in
construction, manufacturing, agro-industry, hospitality,tourism, and retail, MSMEs in supply
chains for agricultural and horticultural exports as well as production+marketing of critical
food crops and soon.

14
1.5 Key issues and COVID-19 impacts.

• MSMEs
30%+of SMEs could be in jeopardy, mostly in urban areas and those embedded in small-
scale manufacturing, export, construction, and service industry supply chains.

• Jobs
A 10–15% loss of employment/livelihoods leading to a cumulative loss of perhaps 1.6– 2.4
million jobs/livelihoods depending on the severity and duration of the crisis, mostly in urban
areas. In the worst case, 3.2–4 million could lose their jobs/livelihoods. Knockon efects on
small businesses/enterprises and self- as well as wage employment in both the formal and
informal sectors, especially in the services sector, afect larger urban centers most sharply
with business closures and rising unemployment or loss of livelihood and loss of productivity
in the case of widespread illness in the workforce.

• Sectorial/sub-sectorial impacts

1.) Agriculture
Production might drop by 30% if producers revert to the extensive production system for cash
crops. Signifcant income losses in specifc sectors, e.g., livestock, horticulture and supply
chain disruptions, are an increasing possibility. Start-up of agro-industrial parks will be
delayed and broader negative impacts on food availability, access, and utilizationsupply chain
disruptions, are an increasing possibility. Start-up of agro-industrial parks will be delayed and
broader negative impacts on food availability, access, and utilization.

2.) Manufacturing
Total shutdown or sharp drop in production capacity and reduced employment in industrial
parks, subsectors such as textiles and garment and leather and leather products will be hit
hard, the fower industry faces catastrophic losses and agro-food processing but beverages
subsector will be relatively less impacted.

15
3.) Services (tourism, hospitality, aviation, trading, retail)
High likelihood of closure of businesses and large-scale loss of jobs/livelihoods, in both the
formal and informal sectors, especially in urban areas, women, who are disproportionately
represented in the informal sector, will be impacted seriously and signifcant and prolonged
forex losses from tourism are very likely.

4.) Education
Te COVID-19 pandemic has resulted in school closures across the world. It is estimated that
learning for 89% of the world’s student population has been disrupted. In Ethiopia, schools
have been closed since 16 March 2020 and this is likely to remain the case until the end of
the academic calendar. Tis means that over 26 million children are currently not in school, of
which approximately 77% are primary school pupils. Tese children are neither learning nor
beneftting from other school-based support mechanisms, such as protection, health, and
school feeding. In short, children’s well-being is at risk. Key education indices which were
already dismal before the COVID-19 pandemic are at risk of worsening in the current crisis.

1.6 Estimations of impact of corona virus

• Promote measures that put people at the center and protect them and their rights
While also conserving vital economic and fnancial assets and systems.
• Recognize and target those sectors and groups that are most severely impacted and are
either already or likely to be left behind
• Avoid distortions in policy and investments that turn temporary measures into
permanent ‘giveaways’ unless deliberately designed as incentives connected to longer
term development objectives
• Seize the opportunity to boost longer term goals tied to the short term goals that foster
a fairer and more resilient, productive, greener, and sustainable future for India.

16
 • Opportunities of COVID-19 for some sectors

Beyond its innumerable challenges and crisis, Corona viruses has some advantages and
opportunities for some sectors in the country. From these many firms are trying digital
activities for the first time, opportunities will also emerge, however, to accelerate a return to
trend, for instance, using repurposing to boost MSMEs in the manufacturing sector through
the production of health equipment and supplies or to take a signifcant step forward in the
digitalization of services in the public and private sectors and greatly initiating innovations.

1.7 Efforts taken by the government to uplift MSME Industry after COVID 19

Atma Nirbhar Bharat Abhiyan’ or the Self-Reliant India Scheme of 2020 by the Government
of India has given a new definition for MSMEs. The Atma Nirbhar Package announced by
the Government provides various kinds of assistance to the economy including units in the
MSME Sector. 4 Under Atmanirbhar Bharat, Government announced a special economic and
comprehensive package of Rs. 20 Lakh crore for all the sections of the society including
Industries and MSMEs. Government has taken a number of initiatives to support the MSME
sector in the country which include the following;

i. Rs 20,000 crore Subordinate Debt for MSMEs.

ii. Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
iii. Rs. 50,000 crore equity infusion through MSME Fund of Funds.
iv. New revised criteria for classification of MSMEs.
v. New Process of MSME Registration through ‘Udyam Registration’. vi. No global tenders
for procurement up to Rs. 200 crores, which will help MSMEs.

1.8 Impact on covid-19 on small scale industries.

Severe acute respiratory syndrome corona virus which causes corona virus disease (COVID-
19),was first identified in December 2019 in Wuhan city, China, and later spread worldwide. The first
positive cases in India were reported in the state of Kerala on January 30th, 2020.
Subsequently, the number of casesdrastically rose.As of May 8th, 2020, Maharashtra, Delhi,
and Gujarat states were reported to be hotspots for Covid-19. To impose social distancing, the
“Janata curfew”

17
The “Janata curfew lockdown was ordered on March 22nd, 2020. Afurther lockdown was
initiated for 21 days, starting on March 25th, 2020, and the same was extended until May
3rd,2020, but, owing to an increasing number of positive cases, the lockdown has been
extended for the third time untilMay 17th, 2020 Nineteen districts in Uttar Pradesh are
identified as hotspot districts, and this was followed by 14and 12 districts in Maharashtra and
Tamil Nadu, respectively. The complete lockdown was implemented in thesecontainment
zones to stop or control the community transmissionDuring the lockdown all offices and
businesses were closed. All public places including schools and colleges werealso closed.
Only the necessary services like hospitals, pharmacies, groceries, vegetables and dairy
businessesremained open with strict observance of pandemic lockdown norms. Because of
this, all the stakeholders of this business have suffered a huge loss.

The MSMEs sector plays a vital role in stimulating the growth of the Indian economy. Prior
to the COVID-19 thissector is experiencing slow rate of growth due to a multitude of
challenges like lack of Finance, shortage of RawMaterial, lack of availability of power,
proper Marketing techniques, advanced Technology, Inadequate andinappropriate
transportations and communication network, poor project planning, Skilled Manpower etc.
But the problems have been provoked more by the process of demonetization (2016) and
Goods & Services Tax (2017). Butthe sudden outbreak of COVID- 19 pandemic has
disrupted many businesses around the world due to subsequentcomplete or partial lockdown
and social distancing measures, which are essential measures to reduce the spread ofthe
virus.Workplace closures affected the supply chain and led to reduced production. Income
decline, salary cutoff, layoffs, fear of infection are some ofthe reasons which have led to reduced consumer
spending, which isfurther causing job losses and business closures.

1.9 SomePositive impact of COVID- 19 on small scale industries:-

There are also some positive impacts on MSMEs due to COVID-19. In the time of lockdown,
the movement ofgoods has been stopped. MSMEs are self-dependent and try to produce
goods within the country. MSME is a greatopportunity to produce hand sanitizer, face mask,
etc. Some businesses are positively affected, which deal with therequired items for
livelihood. People demand the essential items more than necessary, which ultimately
increases the price due to lower supply. In the containment zones, movement of the

18
individual has been banned and in this criticalsituation, some business deals with packed
products hold the opportunity by making home delivery and creating ahealthy society.

The COVID- 19 pandemic had adversely affected the productivity of small scale industries.
Some businesses totallyshut down their work. The crisis is an unexpected event, and the
key is to act quickly to implement responses. Firmsor businesses diverged in their responses,
while some opted for a retreat strategy like a distress sale of assets, takingnew debts, lying off
employees, which in the long run can undermine the competitiveness of the company.
Othersacted in a more resilient manner, which includes taking into account the new needs of
the customers, moving toonline channels for sales, in case of supply chain disruption,
sourcing from new suppliers.

• Relief Packages for small scale industries through MSME:-

Businesses have been taking a hit due to Covid-19 lockdown. The supply chain has been
disrupted, imports andexports are down, and markets are bearish. The MSME segment has
perhaps been the hardest hit. The governmenthas started taking some steps to keep the
MSME segment afloat. The Reserve Bank of India recently introducedLong Term Repo
Operations (LTRO) worth Rs 100,000 crore to help banks increase lending at cheaper
interestrates. Government-run banks are also being encouraged to keep loans worth Rs
60,000 crore ready.

The government of India has taken the following policy initiatives to support the MSMEs to
manage the shock ofCOVID-19 pandemic. However, we must note that only the registered
MSMEs are eligible to get the financialsupport. The government announced a support
package with the specific objective to support the availability ofcredit to SMEs and
microenterprises.

19
 CHAPTER 2
2. Review of Literature.

Al-Fadly (2020):examined negative economic impacts caused by the COVID-19 pandemic

in SMEs, specifically, in tourism sector in Kuwait. The author interviewed selected sample of
SMEs that were affected by the pandemic in order to identify the most important factors,
which influence business, labour force, supply chain and cash flow in SMEs. The analyses
concluded that the pandemic caused high unemployment, and the government measures are
required to reduce negative impacts of the pandemic and to avoid bankruptcy in SMEs.

Aribisala and Olufolarin (2020) : analysed the effects of the COVID-19 pandemic on
employment in SMEs in Nigeria. The authors emphasise an importance of active government
measures that may reduce negative pandemic impacts, and the bankruptcy of many SMEs.

Mahajan, Y. (2020): examined the economic effects of the pandemic on SMEs, while they
especially focussed on the manufacturers. In their study, the authors distinguish between
immediate impacts and long-term impacts of the pandemic on SMEs in terms of the global
value chains. The demand disruption and the logistic challenges, that depend on the rate and
the severity, and differ from the company and the sector, were result of the short-term
impacts. The study concludes that the political interventions may not be universal, but they
have to take into account the pandemic impact on the individual companies and sectors.
Innovations, internationalisation and networks’ formation are required to support the renewal
and the growth of SMEsSectoral heterogeneity of the studies indicates the specificities of the
companies, and those processes within the companies that are impacted by the pandemic the
most. For instance, the study by the Malaysian authors.

20
Belanova (2020) : draws attention to the critical consequences of the COVID-19 pandemic
on micro, small and medium-sized companies in Slovakia. In the analysis, the author states
that almost 8.9% of the entrepreneurs in SMEs were forced to terminate their business
activities during the pandemic. On the other hand, those entrepreneurs who survived and
continued in their activities (57%) had difficulties with the declining demand for their
products and services.

Waiho et al. (2020) : also uses a case study to declare the impacts of the COVID-19
pandemic on the aquaculture sector in Malaysia. The authors create wider discussion
framework in order to develop such strategies that could also be used by other sectors and
countries with similar economic characteristics.

Wojcik and Ioannou ( 2020) : perceive the pandemic impacts more broadly. The authors
especially examine the macro-economic impacts of the pandemic. Also, the authors state that
the financial regulation may slow down, the consolidation processes of the companies may
continue, and the business services in the financial sector may grow as a consequence of the
pandemic crisis. However, the authors argue over the differences between local, regional
financial centres and international centres, and their significance at the financial markets.

Razumovskaia et al. (2020) : assess the effectiveness of Russian government policy to

support SMEs during the pandemic crisis. The authors focussed on the development of
cognitive – econometric model, while they created a system of key indicators, which
influence the economic development in SMEs. Similarly, the authors assessed the impacts of
the public policy tools on the economic development in SMEs based on the econometric
methods. In conclusion, the study contains important implications, while the authors declare
that private and government institutions may use the developed cognitive model to
permanently monitor efficiency of the public policies, which were created to support SMEs.

21
Mohanty, P., & Mishra, S. (2021) : present the results of McKinsey survey that was
conducted in August 2021 on the sample of 2200 SMEs in five European countries: France,
Germany, Italy, Spain and the United Kingdom. It focussed on the assessment of the COVID-
19 pandemic crisis impacts. Almost 70% of the respondents confirmed revenue decline that
caused serious economic consequences in the company. More than half of the respondents
expected that their entrepreneurship may be terminated in one year due to the pandemic
crisis. However, there were those respondents (20%) who used various forms of government
support e.g., tax reliefs, and/or payments to furloughed staff. Similarly, as other authors,

Ali, A. (2020) : emphasises an importance of SMEs in the economy of a country. The author
examined 69 manuscripts in order to analyse an impact of the previous crises on SMEs.
Consequently, the author suggests some prevention options on how to avoid an economic
decline within the country in the area of strategies, finances, and institutional environment.

Deschryvere et al. (2020) : the authors state that in many countries, the governments
accepted support measures during the pandemic crisis. However, majority of those measures
dealt only with short-term issues of liquidity. Thus, the authors consider the role of aid
programs and support mechanisms in order to renew the economic structure. Also, the
authors declare that it is important to remove any obstacles that prevent from innovations,
and to offer solutions to policies’ creators and agencies that support SMEs for solving these
system problems caused by the pandemic. Similarly, technological development level,
including digital technologies use in SMEs, influences overall pandemic impacts.

Priyono et al. (2020) : evaluate to what extent SMEs are able to switch to various levels of
digital transformations of their processes. This rate is related to digital literacy of SMEs that
varies from company to company. The authors, whose study has limitations especially in
generalising the results for different sectors of the economy, emphasise the need to research
digital aspects in the transformation processes of the companies on the sample of SMEs in
various sectors. In the reports, many institutions intensively evaluated negative pandemic
impacts on multiple economic areas. Their analyses’ results assess the impacts from a short-
point of view. However, these findings are necessary to create such policies that would form
effective systems in order to implement different grant mechanisms and supports.
Subsequently, it is possible to assess to what extent the targeting of support mechanisms and
policies was successful in preventing the bankruptcies of the most sensitive economic sector.

22
Kornelius et al. (2020): emphasises a necessity to create effective strategies that would
support SMEs during the pandemic, and that would also focus on ECONOMIC other aspects
apart from the elimination of negative impacts. This study covers strategies from various
countries that successfully retain SMEs during a pandemic. The innovative capacities of
SMEs are very important. Consequently, it is inevitable to set such strategies that would
maintain SMEs by using the innovative potential of the companies, and that would not be
only used as business compensation for damages. Also, the authors use experiences of
multiple countries and search for optimal strategy that could be used in especially those
countries, where the impacts in SMEs are the most critical. Some authors declare that it is
important to obtain as much information as possible on the national SMEs and to closely
monitor all factors that have an impact on their survivals in order to formulate effective
strategies which would eliminate the COVID-19 pandemic impacts.

Nurunnabi (2020): showed an example of Saudi Arabia and how this country solved all
changes in SMEs survival strategies during the pandemic. The author used interviews with
the executive directors in 111 SMEs out of six administrative sectors. As the author suggests,
close monitoring may provide a sufficient flexibility to implement all necessary emergency
plans in SMEs. Many SMEs will be touched by the effects of the crisis and the economic
recovery of their processes in the long term as well as ensuring the enterprise growth and
prosperity will be a part of their strategic objectives. This will also have an impact on the
creation of new risk management systems in the enterprise that should be more flexible to
reflect on predictable as well as unpredictable changes in the external business environment
and in the global enviroment too.

Bartik et al. (2020) : conducted a survey in late March of nearly 6000 small businesses that
were members of the alienable business network. Tey fnd that 43% of businesses are
temporarily closed, large reductions in employees, and the majority of businesses have less
than 1 month of cash on hand.

23
Desai & Looze, (2020) : Te Stanford Latino Entrepreneurship Initiative (2020) surveyed 224
high-revenue Latin-owned businesses and found that 86% of respondents reported immediate
negative efects, such as delayed projects and closure from the pandemic. Tis paper builds on
the previous work by focusing on early-stage efects in April–June using CPS data, and by
exploring diferential efects for female, minority and immigrant business owners, which is
potentially important for targeting government aid to preserve small businesses and the jobs
they create.

Alexander et al. (2020) : research examined the fnancial fragility of many small businesses,
and how deeply afected they are by the current crisis. In their sample, which is skewed
toward the retail sector, they found that 43% of businesses were temporarily closed and that
employment had fallen by 40%. Tis represents a shock to America’s small frms that has little
parallel since the Great Depression of the 1930s. Te study result suggest that many of these
frms had little cash on hand toward the beginning of the pandemic, which means that they
will either have to dramatically cut expenses, take on additional debt, or declare bankruptcy.
Tis highlights the ways in which the immediacy of new funding might impact medium term
outcomes. Based on the above problem statements and lack of sufcient fndings on the related
area the researcher was initiated to conduct this study. So that the study will fll the
knowledge and other gaps such as researches with inconsistent results that are conducted in
the recent world.

Eggers (2020) : most of the studies that focus on fnance are concerned with the
consequences of the crisis on small frms, namely, the lack of funding and fnancing sources.
strategyoriented studies indicate that successful frms adopt a strategy that is both market- and
entrepreneurship-oriented during a crisis. Small business research has recognized the
importance of a crisis perspective.

Kuckertz et al., (2020) : examines how innovative startups deal with the lockdown and the
most efective policies. To find that many startups deploy various responses associated with
resilience to turn crisis-induced adversity into opportunity. Tey propose that entrepreneurs
who demonstrate fexibility in their business models are likely to access broader emerging
opportunities. Tis fnding points to the temporal aspects of the crisis that require further
investigation.

24
Perwej, A. (2020) : Although, crises can be highly damaging for business as they erode trust,
damage company value, threaten business goals and objectives, and may even lead to
business failure. Existing literatures suggest that small rmss may be more vulnerable to crisis
events due to lower levels of preparedness, resource constraints, relatively weak market
positions, and higher dependence on government and other domestic agencies. SMEs usually
sufer from high losses, reduced sales volume, inability of meeting contract terms, reduction in
staf numbers, and even close down of the business during or after crises. During this kind of
challenging times, new startup frms have a high chance of surviving during crisis periods
than during the growth period, likely due to the lack of job opportunities. Entrepreneurship
activities could ofset the negative impacts of crises by maintaining the fow of goods and
services and restoring the public condense of other business owners and the community at
large, and entrepreneurs pursued new opportunities and established new directions for their
frms during crises.

Swamy, S. (2020).: author and his co-authors observed that, because of lack of disease
prevention resources, workers' failure to return to work, production lines interrupted, and a
decreased business demand, most small businesses were unable to restart work.

Jamuar (1992) : in his investigation talks about the improvement of small Industries and
house Industry in India and the job of small-scale Industries in India, the current position
and issues of small Industries Industry with extraordinary references to Industrial disorder,
government strategy and measures to grow small Industries and Industrial policy and new
Industrial approach for small-scale and cottage Industry.

Rama Swamy (1993) : in his investigation inspects three theory with respect to little scope
fabricating units, to be specific: small firms use more labour per unit of capital, they produce
more yield per unit of capital and small firms use assets more productively than huge firms in
to Ms of all out Factor Productivity

25
Dev & Sengupta, (2020) : SMEs are considered one of the most important aspects that
contribute to economic growth and support the increasing Gross Domestic Product (GDP) of
many countries. It increases the trade opportunities and helps create employment with the
help of innovation, offerings, and aiding business functions and actions Therefore, the
countries are always conscious about SMEs’ performance in the countries that can support
them in increasing the business performance to maintain positive results.

Robinson & Kengatharan, (2020) : have argued that SMEs current performance in the
country has been badly affected due to the current pandemic situation and increasing rate of
COVID-19 in the country China. By the beginning of this pandemic situation, China’s
country has experienced an annual growth to drop to 2.4% in the year 2020 (Kamal, 2020).
On the other hand has also highlighted that SMEs’ current performance has decreased
China’s GDP below 5% year on year

Bullough and Renko (2018) : who stated that entrepreneurs should engage in business
development training and seek networking events or special lectures to learn by modeling
others who have survived through challenging times. Ethiopia can be considered as a high-
risk country based on the societal structure and socioeconomic basis. Tere are strong social
ties and attachments with frequent physical interactions that have been developed for
centuries as a benefcial means of integrity, which are now considered risk factors for
COVID-19 transmission. In urban cities such as Addis Ababa, institutions that provide public
services are inadequate, such that crowding is common in hotels, cafes, restaurants, public
transportation, market places, hospitals, and other social institutions. Tese may fnd it difcult
to maintain physical/ social distancing as a means of infection prevention strategy, thus may
facilitate swift spread of coronavirus disease and run business activities.

Liu et al. (2020) : has also highlighted that it has created the global recession risk that has
resulted in declining growth of the International Monetary Fund (IMF) by 2.5% a year.
Secondly, based on the current situation of COVID-19 that has affected the performance of
SMEs, it has been observed that it has affected each sector and has also created a decreasing
rate of returns as far as the performance of SMEs is concerned.

26
Robinson & Kengatharan( 2020) : Based on the COVID-19 situation, the investment and
retail sales have decreased by 13.5%, 24.5%, and 20.5%, whereas the unemployment rate has
increased and reached 6.2%. Therefore, as referred to in the study of the countries need to
impose short-term and long-term risks and shall also design contingency plans that can be
effective and can be restricted towards the activities that can be designed for reducing the risk
of operations to manage the support in short-term and long-term performance in the country
China. One of the researches carried out the case of Chinese SMEs; it has been observed that
nearly 50 to 60% of the SMEs in the country are having difficulties in paying salaries to the
employees, as referred to in the study.

Yogesh Mahajan (2020) : “study of impact of corona virus pandemic on small and medium
enterprises(MSE‟s) in India”. The Indian economy is undergoing significant growth in
MSE‟s with divers‟ businesses,including machinery and equipment production, metal and
electrical goods, cement, food and beverages,materials for building and development, rubber
and plastic items and automation technology. The COVID19 pandemic has had an effect on
all economic sectors but corona virus on MSE‟s in India. After the dust settles,MSEs find it
necessary, with time to stay competitive, to evolve and alter. The responses to this issue
includethe introduction of protection procedures, sanitization methods, an updated sourcing
policy, the incorporation ofnew vendors, the streamlining of their products portfolio, a more
responsive evaluation of supply chainresilience, and an analysis of emergency management
plan.

Chen & Chia-Wei ( 2021) : The entire world was forced to confront the COVID-19
pandemic, which inevitably resulted in significant upheavals in all spheres, from economics
to social Across the globe, businesses have been impacted by the COVID-19 epidemic,
affecting practically every business sector and industry Lockdown and social distancing
restrictions are used as part of policies and efforts to control the ongoing COVID-19
pandemic.

27
Shen et al (2020) : studied the impact of COVID-19 on the corporate performance of listed
Chinese companies. Results depicted that COVID-19 distorts effect on firm performance.
D’Orazio proved that introducing COVID-19-related policies from 1 January 2020 to 17
May 2020 in the Euro Area had a considerable negative influence on stock markets.
Movements in Google trends, bond yields, EU volatility index and infection rates indicate a
detrimental influence. Fiscal policy announcements had a negligible effect, whereas health
initiatives had a large one.

Bhattacharyya, S. S., & Thakre, S. (2020) : investigated the influence on the energy
industry that COVID-19 had on corporate performance and found that COVID-19 has had a
considerable detrimental influence on the performance of energy businesses. Goodwill
impairment was introduced as a moderating variable, the pandemic affected companies
experiencing goodwill impairment more substantially. So, decision-makers at all levels
should pay closer attention to the impact of COVID-19 on energy firms and implement
counter measures to limit the consequences on the energy industry.

Islam et al. (2020) : discovered a sizeable association between entrepreneurial self-efficacy,

financial performance, and entrepreneurial resilience of small and medium-sized businesses.
Moreover, the study discovered a substantial moderating effect of innovative work behaviour
on the connection between financial performance and entrepreneurial efficacy.

Rababah et al. (2020) : discovered that small and medium-sized businesses were the most
brutal hit or affected by this pandemic. Furthermore, their results demonstrated that serious-
impact locations and industries hardest affected by COVID-19 experienced a more severe
loss in financial performance than other industries. The study’s conclusion presented
significant policy implications, as banks, regulatory agencies central banks and governments
must work cooperatively to address the financial and economic consequences of COVID-19
problems.

Shen et al.(2020) : examined the effects of COVID-19 on company performance using

financial data from publicly traded Chinese enterprises. It demonstrates that COVID-19 had a
detrimental effect on company performance. COVID-19 posed a more substantial detrimental
effect on firm performance when a firm’s investment scale or sales income is less.

28
Saputra and Herlina (2020) : COVID-19 crisis has impacted international commerce and
tourism, which impacts the global economy (Rintanalert and The adverse effects are
widespread and permeate every aspect of human life, mainly related to health. The majority
of financial activities continue to be restricted as a result of public isolation, travel
limitations, lockdowns, and other similar measures, which is a significant blow to a great
number of businesses.

Lu et al. (2020) : Industries and businesses of all sizes have been severely wedged as a
result of COVID-19, and many are struggling to maintain their viability as a result of these
effects. Despite this, some companies have seized the opportunity to carve out a new market,
and many SMEs are attempting to adapt to the new environment. Small businesses are more
susceptible to global crises because of their limited resources, and COVID-19 is having an
especially negative impact on them. There is still a requirement to adopt strategies that will
ensure long-term survival, even though environmental sustainability has become one of the
most important factors in the present situation

Lobacz (2020) : Consequently, small- and medium-sized businesses are under increasing
pressure to modernize their operations through various technologies (. Sustainability in the
industry is achieved by utilizing technologies that either develop or adopt environmentally
friendly practices. The current study will focus on the process for achieving sustainable
performance that SMEs can use during the COVID-19 pandemic.

(Ko et al. 2020) : The COVID-19 pandemic, on the other hand, has made it unavoidable for
businesses to abandon their traditional methods in favor of more environmentally friendly
ones to operate sustainably. To achieve this goal, SMEs will require technologies that can be
customized. SME research focuses on the factors that lead to environmental and social
practices in small- and medium-sized enterprises (SMEs). They are linked to environmental
productivity and performance, social performance, governance mechanisms, and green
innovation. On the other hand, the authors do not discuss how new technology affects
environmental stewardship and SMEs’ ability to sustain themselves. The goal of the current
research is to develop a model that will offer a comprehensive theoretical structure for
assessing how environmental, organizational, and technological factors can lead to long-term
functioning levels in SME through the adoption of environmentally friendly green practices.

29
As a result, it will be a developed methodology for assessing how technology advancement
can contribute to long-term performance levels in SMEs.

Zou & li (2020) :discovered that the COVID-19 pandemic had impacted virtually every
aspect of the global economy and society. The study examined enterprises in Guangdong
Province to ascertain the pandemic’s impact on them and to suggest public strategies to
mitigate the negative impacts. Businesses in Guangdong Province have encountered
significant hurdles due to the outbreak. Their manufacturing and operations are curtailed, and
they face substantial dangers. It is vital to enact regulations that significantly reduce
enterprises’ production costs, allowing them to weather this difficult phase and gradually
resume normal operations.

Assefa, M. (2020):found that the epidemic’s severity has a significant negative effect on
import and export cargo throughputs; further, the impact of the pandemic on import is more
significant than export.

Dash et al.(2021) : found that fatalities from communicable diseases have negatively
impacted the Indian aviation market. Inline, Kumar Das and Patnaik found that various
industries such as telecom, tourism and aviation, auto sector and transportation are the most
impacted sectors facing negative backlash of the present disaster. Existing studies analysed
the connection between COVID-19 and economic performances.

Prasad, R., & Mondal, A. (2020) : The economy was already in a precarious state before
the breakout of covid-19; with the suspension of economic activity and state-wide lockdown,
the economy expected to experience a lengthy period of slowing. According to a recent
Hindustan Times report, covid 19 affects 70% of the banking sector’s debt. It has impacted
19 industries with a combined debt of 15.5 lakh crore that was not stressed prior to the
outbreak.

30
Mohammed et al., (2020) : emphasis on the dangers of the continuousoutbreak and a
sustainability - oriented system's redesign of the current worldwide economic model of
development. The paper claims that simultaneous demand andsupply issues caused the fall of
cargo shipping in support of airfreights, whose valuestreble over night, resulting in monetary
losses, disparities, an amplification ofunderdevelopment, and economic crashes globally.
Because of the contraction andcessation of production and other commercial growth, the
utilization of powerproduction has significantly decreased.

Kumar, R. (2020) : A significant rise in online shopping as aresult of shifted consumer

habits and social segregation policies has been good forlarge market participants but has had
an adverse influence on SMEs that do not useinternet resources.During lockdown period
office and other commercial places werehugelyunderrated and required to increase ventilation
price. Governmental bodies areadmitting the role of national level circular economy policies
in several aspectsincluding decreasing over dependence on the manufacturing nation for
necessarygoods as huge deficit induced the inadvertent adoption of circular economy
principles.

Sharma et al. (2020) : evaluated the impacts of covid-19 pandemic on theIndian economy.
The covid-19 pandemic has not only resulted consequences relatedto income associated with
morbidity and mortality but it has also significantly raisedthe expenses on healthcare services
which has enormous impact on the demographyand the economy of India. The study
suggested a set of measurement plans to broadenthe comprehension of the3 linkages between
infectious diseases, individual behaviour,public health policies and economy and provided
ways to reform public healthpolicies for sustenance of the economy. Presently the deleterious
effects of a newzoonotic disease vary substantially between developed and developing
country.Therefore, better strategy and global collaboration in the field of public health and
economic development are prerequisite.

31
Kanitkar et al. (2020) : utilized linear input-output model to evaluate theeconomic costs in
India due to Covid-19 pandemic. Findings revealed that thedepending on the situation of the
lockdown imposed the Indian economy may losearound 10-31 percent of its Gross Domestic
Product (GDP). The findings showed thatthe routinely supply from coal power plants has
been declined by 26 percent duringthe lockdown period leading to possible emission
reduction of around much greater than the presently being paid by public in Indiapointing out
the dilemma in attaining emission reduction through reforming economicactivity as often
promoted.

Maital, S., & Barzani, E. (2020) : The spreading coronavirus may soon affect people’s
health in a different way: The outbreak is now starting to hurt the supply of essential drugs.
Drug makers are struggling to get vital raw ingredients for common antibiotics and vitamins
from Chinese factories, which were closed for weeks as China battled to contain the
coronavirus. Now, even as some of the country’s factories have restarted, shortages of some
drugs may develop. The disruption is being felt most acutely in India, where the authorities
on Tuesday ordered the country’s vast pharmaceutical industry to stop exporting 26 drugs
and drug ingredients, most of them antibiotics, without explicit government permission.
That’s a problem for the rest of the world, which relies on India’s drug makers for much of its
supply of generic drugs. India exported about $19 billion of drugs last year and accounted for
about one-fifth of the world’s exports of generics by volume, according to the India Brand
Equity Foundation.

Binoy et al. (2021) : the economic effects of COVID-19 on theperformance of Indian states
were assessed. Regression analysis showed that Indianstates that saw a higher dispersion of
the COVID-19, harsh early economiccircumstances, and a greater reliance on diverse
industries for employment sufferedvery significant losses. States with better facilities, a more
advanced healthcaresystem, and substantially greater employment rates, on the other hand,
have sufferedconsiderably smaller economic losses.Furthermore, the state's economy had
been negatively harmed by thelockdown that was in place from April to May. According to
the analysis, states inmore dangerous situations should receive a proportionately larger
allotment ofresources.

32
2.2 RESEARCH GAP:

The review of literature gives us various information of author that they have done the
research work about the small scale business profitability durinf the Covid-19 and related to
the customer satisfaction for the small scale business products specially about their buying
behaviour during covid 19 pandemic . It can be clearly observed that most of studies focus on
different aspects of small scale business related to covid-19 pandemic.

The following research has addressed this major issue in Mumbai , where the current COVID-
19 and its impact have been high and have been affecting the overall growth of its economy.
On the other hand has also highlighted that the companies can also facilitate improvement
with mergers andacquisitions that can be effective for the companies for better current
performance and making effective contributions towards increasing the profitability in small
scale business.

The researcher has addressed the following aspects and analyzed SMEs’ current performance
and profitability in Mumbai that are currently affected due to COVID-19. The researcher
filled the gap by addressing the current problems and issues in Mumbai current SMEs due to
COVID-19. It has also been aimed to assess the strategies that the businesses can use to solve
this issue and increase current performance.

The researcher has aimed to focus on the methods of innovation and different operational
procedures that can be used to increase the SMEs’ performance in this regard.

33
 CHAPTER 3
3. RESEARCH METHODOLOGY

3.1 Objectives of the study

• To study the overall impact of Covid-19 pandemic on small scale business in Mumbai.
• To study the impact of Covid-19 pandemic on production of small-scale business in
Mumbai.
• To study to evaluate the impact of Covid-19 pandemic on the employment of small-scale
business in Mumbai.
• To suggest measures to improve the present situation of small-scale business in Mumbai.
• To suggest the recommendation.

3.2 Hypothesis of the study:

• Null Hypothesis H0

H0 - The Covid-19 pandemic has no significant impact on the profitability of small scale
business.

• Alternative Hypothesis H1

H1 - The Covid-19 pandemic has a significant impact on the profitability of small scale
business.

34
3.3 Scope of the study:

The scope of a small-scale business can vary widely depending on the industry and location.
Generally, small businesses offer products or services to a local or niche market. They may
have lower start-up costs, allowing for flexibility and quicker adaptation to market changes.
However, they also face challenges such as limited resources and competition. Success often
hinges on effective marketing, customer relationships, and adapting to evolving market
demands.

Studying the impact of the COVID-19 pandemic can have a broad scope, encompassing
various aspects such as public health, economics, social dynamics, education, and mental
health. Researchers may explore the effects on healthcare systems, changes in work patterns,
disparities in vaccine distribution, psychological well-being, and long-term societal
transformations. The scope can be tailored based on the specific focus, whether regional,
global, or within specific sectors.

Studying the impact of the COVID-19 pandemic on the profitability of small-scale businesses
is crucial. It provides insights into the resilience of these businesses, identifies challenges
they faced, and informs strategies for future resilience. Factors to consider include changes in
consumer behavior, government support, and the effectiveness of adaptation measures taken
by small businesses.

3.4 Sources of data:

• Primary data:

The Primary datahave been collected by making a well-structured Google form and data was
collected by using questionnaire method with the reference to Mumbai region.

35
 • Secondary data:

The secondary data is collected through following sources Internet sites, website, Magazines,
different journals and publication and other relative research papers

3.5 Sample Size

A sample of 50 respondents were considered keeping in view , the constraints of time and
resources.

3.6 Sample Method and Statistical tools:

This is the type of technique that one uses to select the items for the sample.The sampling
method that I have used is Simple Random Sampling.

• Research Instrument:

Questionnaire is prepared and use to collect the the information. The questionnaire has been
designed with both Open ended and Close ended question.

• Statistical tool:

To justify the hypothesis I have used Excel Anova: Single Factor.

36
3.7 Limitation of the Study:

• The main limitation is that sample only includes the views of people living in the
Mumbai region.
• Sample size was small and hence the results can have a degree of variation.
• Sampling method used was convenience & random so the results may not be
completely accurate.
• Respondents may not be fully aware of their reasons for any given answer because of
lack of memory on the subject, or even boredom.
• Obtaining accurate financial data from small businesses can be challenging. Some
may not keep detailed records, and the available data might be subjective or
incomplete.
• The study may primarily capture data from businesses that survived the pandemic,
potentially overlooking those that closed down. This bias can affect the overall
assessment of the impact on profitability.
• Depending on the study's timeframe, historical financial data may be insufficient to
provide a robust baseline for comparing pre-pandemic and post-pandemic
profitability.

37
 CHAPTER 4
4. DATA ANALYSIS AND INTERPRETATION

4.1 Analysis and Interpretation.

Q1). What is your Gender ?

(Table No. 4.1.1)
Gender No of Respondents Percentage

Male 28 56%

Female 22 44%

Total 50 100%

(Figure No. 4.1.1)

Interpretation

The above pie chart shows the gender of respondent.

• 56% respondents are Male.
• 44% respondents are Female.

38
Q.2) Age Group?

(Table No. 4.1.2)

Category(years) No of respondents Percentage

20-25 8 16%

26-35 15 30%

36-40 17 34%

41-50 10 20%

Total 50 100%

(Figure No. 4.1.2)

Interpretation

The above pie chart shows the age of respondent

• 16% respondent belong to 20-25 years age group category.
• 30% respondent belong to 26-35 years age group category.
• 34% respondent belong to 36-40 years age group category.
• 20% respondent belong to 41-50 years age group category.

39
Q.3) What is your Qualification?

(Table No. 4.1.3)

Qualification No of Respondents Percentage

SSC 10 20%
HSC 10 20%

Graduate 15 30%

Post Graduate 15 30%

Total 50 100%

(Figure No. 4.1.3)

Interpretation

The above pie chart shows the Qualification of respondents.

• 20% respondents have done SSC.
• 20% respondents have done HSC.
• 30% respondents have done Graduate.
• 30% respondents have done Post Graduate.

40
Q.4) What is your Income ?

(Table No. 4.1.4)

Income No of Respondents Percentage

10,000-20,000 20 40%
20,000-30,000 15 30%

30,000-40,000 10 20%

40,000 & Above 5 10%

Total 50 100%

(Figure No. 4.1.4)

Interpretation

The above pie chart shows the Income of respondents.

• 40% respondents has a income of Rs 10,000-20,000
• 30% respondents has a income of Rs 20,000-30,000
• 20% respondents has a income of Rs 30,000-40,000
• 10% respondents has a income of Rs 40,000 & Above

41
Q.5) What is the nature of your small-scale business in Mumbai?

(Table No. 4.1.5)

Nature of business No of Respondents Percentage

Printing & Stationery 20 40%

Hardware/ Electronic 5 10%

Sweet Shop 10 20%

Others 15 30%

Total 50 100%

(Figure No. 4.1.5)

Interpretation

The above pie chart shows the Natue of business of respondents.

• 40% respondents has a Nature of business of Printing & Stationery.
• 10% respondents has a Nature of business of Hardware/ Electronic.
• 20% respondents has a Nature of business of Sweet Shop.
• 30% respondents has a Nature of business of Others.

42
Q.6) Did the COVID-19 pandemic negatively affect the profitability of small-scale business ?

(Table No. 4.1.6)

Particulars No of Respondents Percentage

Yes 35 70%

No 15 30%

Total 50 100%

(Figure No. 4.1.6)

Interpretation

The above pie chart shows that the COVID-19 pandemic negatively affect the profitability of
small-scale business
• 70% of respondents says that COVID-19 pandemic negatively affect the profitability
of small-scale business
• 30% of respondents says that COVID-19 pandemic has not done any negative affect
on profitability of small-scale business

43
Q.7) Does small-scale business able to maintain their pre-pandemic levels of profitability
during the COVID-19 pandemic?

(Table No. 4.1.7)

Particulars No of Respondents Percentage

Yes 30 60%

No 20 40%

Total 50 100%

(Figure No. 4.1.7)

Interpretation

The above pie chart shows that small-scale business are able to maintain or not their pre-
pandemic levels of profitability during the COVID-19 pandemic
• 60% of respondents says that they are able to maintain pre-pandemic levels of
profitability during the COVID-19 pandemic
• 40% of respondents says that they are not able to maintain pre-pandemic levels of
profitability during the COVID-19 pandemic

44
Q.8) Did small-scale businesses experience a decline in customer demand due to the COVID-
19 pandemic?

(Table No. 4.1.8)

Particulars No of Respondents Percentage

Yes 43 86%

No 7 14%

Total 50 100%

(Figure No. 4.1.8)

Interpretation

The above pie chart shows that does the small-scale businesses experience a decline in
customer demand due to the COVID-19 pandemic or not.
• 86% of respondents says that small-scale business experience a decline in customer
demand due to the COVID-19 pandemic.
• 14% of respondents small-scale business didn’t experience a decline in customer
demand due to the COVID-19 pandemic.

45
Q.9) Did your small-scale business have to temporarily close due to Covid-19 restrictions?

Table No. 4.1.9)

Particulars No of Respondents Percentage

Yes 45 90%

No 5 10%

Total 50 100%

(Figure No. 4.1.9)

Interpretation

The above pie chart shows that does the small-scale business have to temporarily close due to
Covid-19 restrictions or not
• 90% of respondents says that small-scale business have been temporarily close due to
Covid-19 restrictions.
• 10% of respondents says that small-scale business have not been temporarily close
due to Covid-19 restrictions.

46
Q.10) Does small-scale business able to adapt their operations to mitigate the impact of the
COVID-19 pandemic on profitability?
Table No. 4.1.10)
Particulars No of Respondents Percentage

Yes 30 60%

No 20 40%

Total 50 100%

(Figure No. 4.1.10)

Interpretation

The above pie chart shows that does the small-scale business are able or not to adapt their
operations to mitigate the impact of the COVID-19 pandemic on profitability.
• 60% of respondents says that small-scale business are able to adapt their operations to
mitigate the impact of the COVID-19 pandemic on profitability.
• 40% of respondents says that small-scale business are not able to adapt their
operations to mitigate the impact of the COVID-19 pandemic on profitability

47
Q.11) Did your small-scale business experience a decrease in revenue during the covid-19
pandemic ?

Table No. 4.1.11)

Particulars No of Respondents Percentage

Yes 45 90%

No 5 10%

Total 50 100%

(Figure No. 4.1.11)

Interpretation

The above pie chart shows that does the small-scale businessexperience a decrease in revenue
during the covid-19 pandemic or not.
• 90% of respondents says that small-scale businessexperience a decrease in revenue
during the covid-19 pandemic.
• 10%of respondents says that small-scale business didn’t experience a decrease in
revenue during the covid-19 pandemic.

48
 Q.12) Did the duration of lockdown and restrictions correlate with the extent of profit
decline for small-scale businesses?

(Table No. 4.1.12)

Particulars No of Respondents Percentage

Yes 40 80%

No 10 20%

Total 50 100%

(Figure No. 4.1.12)

Interpretation

The above pie chart shows that does the duration of lockdown and restrictions correlate
with the extent of profit decline for small-scale business or not.
• 80% of respondents says the duration of lockdown and restrictions are able to
correlate with the extent of profit decline for small-scale business.
• 20% respondents says the duration of lockdown and restrictions are unable to
correlate with the extent of profit decline for small-scale business.

49
Q.13) Did your small-scale business experience increased expenses related to Covid-19
safety protocols?

(Table No. 4.1.13)

Particulars No of Respondents Percentage

Yes 35 70%

No 15 30%

Total 50 100%

(Figure No. 4.1.13)

Interpretation

The above pie chart shows that does small-scale business expences increased or expenses
related to Covid-19 safety protocols or not.
• 70% of respondents says the small-scale business expences has increased or
expenses related to Covid-19 safety protocols.
• 30% of respondents says the small-scale business expences has not increased or
expenses related to Covid-19 safety protocols.

50
Q.14) Did your small-scale businesses experience supply chain disruptions due to the Covid-
19 pandemic ?

(Table No. 4.1.14)

Particulars No of Respondents Percentage

Yes 32 64%

No 18 36%

Total 50 100%

(Figure No. 4.1.14)

Interpretation

The above pie chart shows that does the small-scale businesses experience supply chain
disruptions due to the Covid-19 pandemic or not.
• 64% respondents says that the small-scale businesses has experience supply chain
disruptions due to the Covid-19 pandemic.
• 36% respondents says that the small-scale businesses did not experience supply
chain disruptions due to the Covid-19 pandemic.

51
Q.15) Did your small-scale business lay off employees as a result of the Covid-19 pandemic?

(Table No. 4.1.15)

Particulars No of Respondents Percentage

Yes 28 56%

No 22 44%

Total 50 100%

(Figure No. 4.1.15)

Interpretation

The above pie chart shows that does the small-scalebusiness lay off employees as a result of
the Covid-19 pandemic or not.
• 56% of respondents small-scale business has lay off employees as a result of the
Covid-19 pandemic.
• 44% of respondents small-scale business did not lay off employees as a result of the
Covid-19 pandemic.

52
16.) Did your small-scale business transition to e-commerce or online sales during the covid-
19 pandemic?

(Table No. 4.1.16)

Particulars No of Respondents Percentage

Yes 37 74%

No 13 26%

Total 50 100%

(Figure No. 4.1.16)

Interpretation

The above pie chart shows does small-scale business transition to e-commerce or online sales
during the covid-19 pandemic or not.
• 74% of respondents says that the small-scale business transition has done to e-
commerce or online sales during the covid-19 pandemic.
• 26% of respondents says that the small-scale business transition has not done to e-
commerce or online sales during the covid-19 pandemic.

53
Q.17) Did you get any help from the government during covid-19 pandemic?

(Table No. 4.1.17)

Particulars No of Respondents Percentage

Yes 46 92%

No 4 8%

Total 50 100%

(Figure No. 4.1.17)

Interpretation

The above pie chart show that the repondents get any help from the government during
covid-19 pandemic or not.
• 92% repondents says that they get help from the government during covid-19
pandemic.
• 8% respondents says that they did not get help from the government during covid-19
pandemic.

54
Q.18) .Can your small businesses able to thrive financially during the pandemic?

(Table No. 4.1.18)

Particulars No of Respondents Percentage

Yes 38 76%

No 12 24%

Total 50 100%

(Figure No. 4.1.18)

Interpretation

The above pie chart show that small business able to thrive financially during the pandemic
or not.
76% respondents show that small business able to thrive financially during the pandemic.
24% respondents show that small business unable to thrive financially during the pandemic.

55
Q.19) What impact did the Covid-19 pandemic have on the profitability of small scale
business?

(Table No. 4.1.19)

Particulars No of Respondents Percentage

Significantly increased 7 14%

profitability
Slightly increased 10 20%
profitability
No significant change 13 26%
in profitability
Significantly decreased 20 40%
profitability
Total 50 100%

(Figure No. 4.1.19)

56
Interpretation

The above pie chart shows that what impact did the Covid-19 pandemic have on the
profitability of small scale business

• 14% repondents says that there is Significantly increased profitability in small scale
business.
• 20% respondents says that there is Slightly increased profitability in small scale
business.
• 26% respondents says that there is No significant change in profitability in small scale
business.
• 40% respondents says that there is Significantly decreased profitability in small scale
business.

57
4.2 Hypothesis Testing

SR.No Yes NO Total

1 35 15 50
2 30 20 50
3 43 7 50
4 45 5 50
5 30 20 50

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Column 1 5 183 36.6 50.3
Column 2 5 67 13.4 50.3

ANOVA
Source of
Variation SS df MS F P-value F crit
Between Groups 1345.6 1 1345.6 26.75149 0.000851 5.317655
Within Groups 402.4 8 50.3

Total 1748 9

• The above test is Anova: Single Factor to justify the hypothesis.

• Total of Five question of (Yes/No) question has framed to justify the hypothesis.
• F=5.317655> P=0.000851. F crit value is more than p value thus the null hypothesis is
rejected and alternative hypothesis is accepted.
• Therefore, H0 that “The Covid-19 pandemic has no significant impact on the
profitability of small-scale business.” is rejected. And H1 that is “The Covid-19
pandemic has a significant impact on the profitability of small-scale business” is
accepted.

58
 CHAPTER 5
CONCLUSION

5.1 Findings of the study.

• There is no difference preferences for small scale business on the basis of gender.
• 34% respondent belong to 36-40 years age group category.
• 30% respondents have done Graduate, As well as 30% respondents have done Post
Graduate.
• 40% respondents have a income of Rs 10,000-20,000 followed by 30% respondents
has a income of Rs 20,000-30,000.
• 40% respondents have a Nature of business of Printing & Stationery.
• 70% of respondents says that COVID-19 pandemic negatively affects the profitability
of small-scale business.
• 86% of respondents says that small-scale business experiences a decline in
customer demand due to the COVID-19 pandemic.
• 90% of respondents says that small-scale business has been temporarily close due to
Covid-19 restrictions.
• 56% of respondent’s small-scale business has lay off employees as a result of
the Covid-19 pandemic.
• 74% of respondents says that the small-scale business transition has done to e-
commerce or online sales during the covid-19 pandemic.
• 90% of respondents says that small-scale business experiences a decrease in
revenue during the covid-19 pandemic.
• 92% respondents says that they get help from the government during covid-
19 pandemic.
• 40% respondents says that there is Significantly decreased profitability in small scale
business.
• the impact of COVID-19 on small-scale businesses was generally negative. Many
faced financial challenges due to lockdowns, reduced consumer spending, and supply
chain disruptions

59
5.2 Suggestion and Recommendation.

Tis research’s findings recommends that the government of the country should make risk
analysis and business steadiness planning in all critical federal and regional institutions,
explore opportunities for cross-border digital trade, and cooperate with domestic small
business firms, support medium- and long-term business investments that lead to resilient
supply chains for critical goods and services under the market, accelerate development of e-
commerce/e-marketing systems including digital marketing, digital banking, digital payments
mechanisms, e-financial services (e.g., microcredit and microinsurance), a national ID
system, and robust digital communications systems within government and other official
activities overall the country.

COVID-19 outbreak widely impacts SMEs in the country and most studies showed that there
is a lack of flexible work strategies, formal documentation mechanisms, and comprehensive
crisis management and aftershock strategies for new micro enterprises with little previous
crisis experience. We recommend that small businesses and owners of small business should
consider long-term and adoptive crisis management strategies, not only focusing on financial
factors but also fully taking nonfinancial factors into account, owners top management, as
well as different levels of personnel, should be involved in developing crisis management
mechanisms according to their needs.

All should work in exploring new markets and incorporating technology into their future
growth, produce different sanitary materials up to end of the pandemic, and make their
marketing flexible based on situations, which is another sign of active learning and
improvement from the crisis. In the long run, the urge to grow and expand market share may
be a strong driving force for small business to strengthen their resilience and renewal
strategies.

60
5.3 Conclusion

Due to the COVID- 19 pandemic subsequent lockdown all small-scale industries suffered
from huge losses and still after COVID- 19 they are suffering. The biggest problems have
been declining demand and a broken supply chain. The problems arise about sanitization,
protection procedure, sanitization methods and other measures. People Hadlow income and
many of them lost their jobs and faced problems in sustaining themselves. The above study
focused mainly on small businesses and their activities during the pandemic.

The small-scale industries eventually had to lower down on their cost and need to take
additional debt to retain. The study shows that multiple businesses shut their businesses due
to the financial crisis. The pandemic not only affected the profitability but also highly
impacted the employees. Hence, all these affected the world economic structure due to the
fall of the backbone of the economy. In that situation people had less purchasing power
because they did not have enough money to survive and it was not possible to purchase
products as per their need so small businesses could not afford to take the risk of investment
in production of goods.

In that worst situation the government had taken some measures to uplift small-scale
industries which had discussed the above study. This benefited directly to the Indian
Economy. However, we cannot be sure about how much time will be taken to improve the
situation of small businesses.

61
 6. REFERENCES

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7. WEBLIOGRAPHY

[1].https://loantap.in/blog/types-of-small-scale-businesses-that-opt-for-business-loan-with-
loantap/
[2].https://www.scirp.org/journal/paperinformation.aspx?paperid=117404-small-scale
business/
[3].https://www.scribd.com/document/579705057/STUDY-OF-IMPACT-OF-COVID-19-
ON-SMALL-SCALE-INDUSTRIES-IN-INDIA.
[4].https://www.researchgate.net/publication/354362787_The_Impact_of_COVID19_on_Sm
all_Businesses'_Performance_and_Innovation.
[5].https://economictimes.indiatimes.com/news/politics-and-nation/covid-19-antique-
lawsreturn-to-fight-a-modern-disease/articleshow/
[6] https://www.forbes.com/sites/danestangler how-do-we-help-small-businessduring-covid-
19-crisis.
[7].https://www.weforum.org/agenda/2020/03/this-is-the-human-impact-of-covid-19-
andhow-business-can-help/
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[9]. https://economictimes.indiatimes.com/small-biz/sme-sector/covid-19-relief-government-
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[10] https://timesofindia.indiatimes.com/small-scale/business.

64
 8. APPENDIX
Q1). What is your Gender ?
• Male
• Female

Q.2) Age Group?

• 20-25
• 26-35
• 36-40
• 41-50

Q.3) What is your Qualification ?

• SSC
• HSC
• Graduate
• Post Graduate

Q.4) What is your Income ?

• 10,000-20,000
• 20,000-30,000
• 30,000-40,000
• 40,000 & Above

Q.5) What is the nature of your small-scale business in Mumbai?

• Printing and stationery shop
• hardware shop / electronics shop
• Sweets shop
• Others

Q.6) Did the COVID-19 pandemic negatively affect the profitability of small-scale
business?
• Yes
• No

Q.7) Does small-scale business able to maintain their pre-pandemic levels of profitability
during the COVID-19 pandemic?
• Yes
• No

65
Q.8) Did small-scale businesses experience a decline in customer demand due to the COVID-
19 pandemic?
• Yes
• No

Q.9) Did your small-scale business have to temporarily close due to Covid-19 restrictions?
• Yes
• No

Q.10) Does small-scale business able to adapt their operations to mitigate the impact of the
COVID-19 pandemic on profitability?
• Yes
• No

Q.11) Did your small-scale business experience a decrease in revenue during the covid-19
pandemic ?
• Yes
• No

Q.12) Did the duration of lockdown and restrictions correlate with the extent of profit
decline for small-scale businesses?
• Yes
• No

Q.13) Did your small-scale business experience increased expenses related to Covid-19
safety protocols?
• Yes
• No

Q.14) Did your small-scale businesses experience supply chain disruptions due to the Covid-
19 pandemic ?
• Yes
• No

Q.15) Did your small-scale business lay off employees as a result of the Covid-19 pandemic?
• Yes
• No

66
Q.16) Did your small-scale business transition to e-commerce or online sales during the
covid-19 pandemic?
• Yes
• No

Q.17) Did you get any help from the government during covid-19 pandemic?
• Yes
• No

Q.18) Did your small-scale businesses experience supply chain disruptions due to the Covid-
19 pandemic ?
• Yes
• No

Q.19) Did your small-scale business lay off employees as a result of the Covid-19 pandemic?
• Yes
• No

Q.20) Did your small-scale business transition to e-commerce or online sales during the
covid-19 pandemic?
• Yes
• No

Q.21) Did you get any help from the government during covid-19 pandemic?
• Yes
• No

Q.22) Can your small businesses able to thrive financially during the pandemic?
• Yes
• No

Q.23) What impact did the Covid-19 pandemic have on the profitability of small scale
business?
• Significantly increased profitability
• Slightly increased profitability
• No significant change in profitability
• Significantly decreased profitability

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 (Self compliance)

(Self-compliance)

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