Four-pronged strategy helped SMEs navigate pandemic

The joint study was done by IMT, Hyderabad, and CII, Telangana

Decline in revenue and profit, an increase in employee retention cost and the business getting hit due to shutdown/slowdown had major impact for the small and medium enterprises (SMEs) on account of the pandemic.

The enterprises however were able to navigate by adopting four strategies – trust-building among stakeholders, including employees, suppliers and buyers; re-engineering the business model; developing a COVID-appropriate ecosystem in the organisation; and by providing a support system, in the form of work from home option, to boost productivity.

Additionally, the government's extension of the credit lines helped SMEs meet working capital needs, according to the report of a joint study by the Institute of Management Technology (IMT), Hyderabad, and the Confederation of Indian Industry-Telangana.