Business adversity during the COVID-19 crisis and beyond: the way forward for small and medium enterprises in India

Abstract

Purpose The novel coronavirus (COVID-19) leaves Indian business teetering on the edge of survival. This paper aims to set out to assess the impact of the pandemic shocks on the small and medium business segments in India. The research also explores the strategies that potentially take the segments back to recovery and growth. Design/methodology/approach The findings draw on the perspectives of academic and business people, and the authors use linear and nonlinear regression modelling under three recovery scenarios to support our arguments. Findings Evidence suggests that the shocks to business are manifold and the severity of most of the issues will aggravate as the recovery prolongs. Practical implications The paper explains the rationale of realistic strategies and compares its effects across potent recoveries. The findings are useful for both academics and business and relates to the strategic decisions that would be taken by small and medium enterprises to expedite recovery from the crisis. Originality/value The research is unique in surveying the academics and entrepreneurs about the impact of COVID-19 on Indian business.

We are in survival mode: how family-owned small foodservice firms in India responded to the Covid-19 pandemic

“…As India is an emerging market, Covid-19 severely impacted most small businesses, which was unprepared for this unexpected crisis. The pandemic has triggered new and irreversible changes for small businesses (Nair, 2021). Government-imposed lockdowns during the pandemic, with restrictions on public gatherings, movement of people and travel, severely affected India's foodservice businesses.…”

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“…The impact of COVID-19 disruptions on individuals, businesses, national economy and, more especially, on the way social and business interaction takes place has been enormous (Olatunde et al, 2022;Nair, 2022). Research has shown that the impacts on small and medium enterprises (SMEs) are greater compared to large multinational companies (De Massis and Rondi, 2020;Ofori-Boateng et al, 2022;Nair, 2022).…”

“…The impact of COVID-19 disruptions on individuals, businesses, national economy and, more especially, on the way social and business interaction takes place has been enormous (Olatunde et al, 2022;Nair, 2022). Research has shown that the impacts on small and medium enterprises (SMEs) are greater compared to large multinational companies (De Massis and Rondi, 2020;Ofori-Boateng et al, 2022;Nair, 2022). Many countries around the world are experiencing a significant contraction of their economic activities (Soluk et al, 2021) which is evident in drop in their gross domestic product (GDP) (Georgieva, 2020).…”