NEW NORMAL :: NEW CHALLENGES

 Now the terror of the second phase of the covid-19 pandemic is on verge of an end. The dynamics of the market used to be there are things of the past.

If we observe the aftermath effect of both waves, we have seen many changes in the market functioning right now.

There are two types of  things that are happening,

 1)  Large and mega corporates are making profits as usual

2) Small enterprises are struggling to make things happen or they are finding it difficult to stay afloat.

Yes, we are attracting large sums of money from across the globe.

And PLI scheme is very attractive for future as ROI is very attractive plus large market plus own diversification of business for future...


What happened for small enterprises is that they continued their business activity at the time of lockdown, they billed and dispatched the goods. But payment for same was not realized as per schedule.

Plus the payment of GST and other dues like labor dues etc continued.

The prices of commodities and the squeeze of credit by distributors/traders made things worse for them.

Many are losing orders as they do not have the liquidity to manage day-to-day operations.

The loan repayment from banks and other financial institutions is another worrisome factor for them.

The same is the story for retailers as the credit squeeze is making the situation worse for them.

The retail side is affected but they still have cash in their hand which makes them beat comfortable than others like manufacturers and service providers.

There need to be solutions for them as they are finding it difficult to use the situation in their favor. Many large companies are making investments, they will outsource their work to small enterprises. But creditworthiness of these enterprises is not up to mark to get additional funding from banks or any other source.

Hope soon we will overcome the problem and get the market moving at the pace which is used to be earlier.



Comments

Popular posts from this blog

FINANCIAL PLANNING REVISITED

|| SHANIWAR SAMWAD || 22-10-2022

|| SHANIWAR SAMWAD || 11-12-2021