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Therefore,byusingaspecificinterlinkofeconomicunderstandingandstatisticaldatacollection,followedbyitsanalysis, wouldleadustounderstandthetrueimpactofthelockdownonMSME,inthelimitedsamplesize.

1.2 Area of Study: Economics

This paper uses quantitative methods to gather data about the impact the lockdown has had on small businesses. These methods include primary surveys using Google Forms with a questionnaire that assess whether the lockdown has had a positiveornegativeimpactonsmallbusinessesandthenecessarystepsthatthesmallbusinesseshavehadtotaketocopeup withtheseeffects.ThesurveywasdistributedtoownersofvarioussmallbusinessesacrossIndiafromdifferentsectorsandthe resultswerecarefullyrecorded.

2. Methodology:

DuetotherecentCovid 19pandemic,therehasbeenalockdownacrossthecountry.Althoughthislockdowndidlimitthe spreadofthevirus,whatdidthismeanfortheeconomy?Morespecifically,whatdiditmeanforsmallbusinessesacrossthe Thiscountry?papertriestofindoutiftheassumptionisactuallytrueorwasthelockdownaboonindisguiseforthesesmallbusinesses.

● A small business has few employees, small revenue and may or may not have an office/headquarters. For this particularpaper,smallbusinessesincludebothmicroandsmallenterprises.

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p ISSN: 2395 0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page924 Impact of COVID-19 on Small Enterprises in India Shrikrrit Bhatter1 1Student, Class 12, St. Xavier’s Collegiate School, Kolkata, India *** Abstract This paper explores the impact of the Covid 19 pandemic and the subsequent lockdown on small and medium businesses in India commonly referred to as MSME. Using primary research through surveys and secondary research through literature review and newspaper articles, we have studied the Covid 19 situation and its impact on these businesses and the effect that the lockdown(s) had on the economic output of such industries. Key Words: Economics, COVID 19, Lockdown, SME’s, MSME’s, Business 1. INTRODUCTION:

MicroandsmallbusinessenterprisesareanintegralpartofthebusinesssectorinIndia.AccordingtotheGovernmentofIndia MSMEannualreport2020 21,thereareatotalof630.5lakhmicro enterprisesand3.31lakhsmallenterprisesacrossIndia. Thesemicroandsmallenterprisesconstituteatotalofmorethan99%ofallMSME(Micro,SmallandMediumEnterprises) in India.Togiveafurtherperspectiveofhowlargethisnumberis,99%ofallbusinessesinIndiaareMSME.

● Alockdownisasituationwherepeoplearerestrictedtostayathome.Itisusuallyduetothefactthatiftheydon't,it putstheiraswellasotherslifeindanger.

Thepaperistryingtoidentifytheresultsthatthelockdownhashadonthesmallbusinessesandinturnonthe economyasthesesmallbusinessesarealargepartofbusinessesinIndia.

1.1 Definitions:

Statistics theuseofstatisticsinthispaperislimitedtodatacollectionandrepresentationonly.Weusedifferentchartsand graphstosimplifythedataandvisuallyrepresentdatatherebyhelpingustoeffectivelyanalyseandinterpretthesame.These graphsalsohelpcalculatethemeanandmedianvaluesforthespecificdata.

● Thesuccess/failureofabusinessismeasuredbytheincrease/decreaseinitsrevenuethroughoutthefiscalyear.

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p ISSN: 2395 0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page925 SURVEYQUESTIONS: 1. NameofyourEnterprise. 2. IndustryyourBusinessbelongsto. 3. SizeofOperation(no.ofEmployees). 4. SizeofOperation(Revenue). 5. RevenueImpactedDuetoLockdown. 6. DidtheOpeningofLockdownv1.0(25March 31May)helpyourBusiness? 7. HowdidtheOpeningofLockdownv1.0helpyourBusiness? 8. DidyouavailofanyGrant,GovernmentAidorLoan? 9. Whatwasthebiggestfactorthathelpedyourbusinessafterthelockdown? 10. WouldyouhavepreferredLockdownv1.0vsnothavinggonethroughitatall? 11. WhatStepsdidyoutaketoincreaseprofitability? Theformwassentouttonumerousdatabasesandorganizationsandthefollowing32responseshavebeencollected.Majority ofthecompaniesthatfilledoutthesurveyhadaworkforceof2 10employees(62.5%),followedbytheoneswithaworkforce of11 30employees(28.1%),morethan100employees(6.3%)andthenbetween31 100employees(3.1%).Themajorityof thesebusinessesbelongedtotherevenuebandbetweenZeroto50Lakhs(46.9%),followedby1Croreto5Crore(25%),5 Croreto25Crore(18.8%)andthen50Lakhsto1Crore(9.4%). Animagisticrepresentationofthesizeofoperationisgivenbelow: Table 1: QuestionnaireResponders SocioEconomicVariable Groups Number Respondentsof Percentage Sizeof (NumberOperationofEmployees) 2 10Employees 20 62.5% 11 30Employees 9 28.1% 31 100Employees 1 3.1% Above100Employees 2 6.3% 3. Findings: Chart 1:COVID 19ImpactbyIndustry

TheLockdownv1.0(25March 31,May2020)hadanegativeimpactonmostofthesmallandmicroenterprises(81%).The lockdownwasparticularlyharshonthesmallerenterpriseswithaworkforceof2 10employeesand11 30employees,with 80%and90%ofallsuchbusinessessufferingalossofrevenueduetothelockdown.Thesebusinessesarespreadacrossall sectorsandtheoverallfallindemandforgoodswasthebiggestfactorforthislossofrevenueforthebusinesses.

Theopeningofthelockdownwasawelcomechangeformostofthebusinesseswith75%ofallbusinessesbenefitingfromthe openingofthelockdown.Thereasonsforthisareobvious.Theopeningofthelockdownhelpedbusinessestorestoreacertain levelofnormalcyintheirwork.Thus,theirdemandwasrestored,andrevenueincreased.Allbusinessesalsotookextrastepsto increasetheirprofitability.Mostbusinessescutdownonbonuses(22.9%),savedtheirworkspaceleasecost(16.7%),moved online(16.7%)andreducedsalaries(12.5%).Mostofthesestepsweretakenbybusinesseswithsmallerworkforces(2 10or11 30employees)

Oneofthemostworryingrevelationsduringthesurveywaswhetherbusinessesavailedanytypeofgrant,governmentaidor loan.Outofthetotal32responses,28(87.5%)hadnotavailedanysuchhelp,andwhatwasmoreisthatnoneofthebusinesses withaworkforcebetween2 10employeeshadavailedanysuchgrant.Theonlyhelpofferedbygovernmentsweretaxreliefs andeveniftherewereanymonetarygrantsavailable,theinformationofsuchwasnotspreadthroughoutverywellforeveryone tobenefitfromit.

Chart 1:BiggestFactorsthatHelpedBusinessesduringtheLockdown.

Chart 1:GovernmentAidorLoan,GrantsAvailedorNot?

Thejuryisstilloutonthequestionofwhetherbusinessownerspreferredgoingthroughthelockdownornotbut60%ofthe businessesagreethatalockdownwasthecorrectdecisiontaken bythegovernment.Atotalof100%ofbusinesseswitha workforceofmorethan100employeesdidnotwantthelockdowntohappen.Upontalkingtothemwefoundoutthatthese businesseshadlostrevenueduetothelockdownandsustainingsuchalargeworkforcewasbecomingadifficultjobforthem.

Theopeningofthelockdownwaswelcomedbybusinesses(75%)irrespectiveofrevenue.Theopeningofthelockdownproved tobeparticularlybeneficialforbusinesseswith2 10employees(80%),thesmallestworkforce,orwithabove100employees (100%),thelargestworkforce.However,inthecaseofrevenue,itwasneitherthesmallestnorthelargestrevenuegroupthat benefitedmostfromthelockdown.Itwasbusinesseswitharevenuebetween1croreto5croreswhere100%ofbusinesses hadanincreaseinrevenueaftertheopeningofthelockdown. 37.5%ofallenterpriseswitharevenueofbetweenzeroto50Lakhsdecidedtogoonlinewiththeirbusinesstoincreasetheir revenueandsaveofficecosts.ThisisanextremelypositivechangekeepinginmindthattheWorldandespeciallyIndia,isinthe middleofadigitalrevolution.Themostpopularsteptakenbybusinessestoincreaserevenuewascuttingdownonemployee bonuses(23%).Thisstepwastakenespeciallybybusinesseswitharevenuebetween1croreto5croresand5croresto25 crores(36%eachofthetotalbusinessesthatcutdownonbonuses).

Asweknow,thelockdownhadanegativeimpactonsmallandmicro enterprises.Thelockdownturnedouttobeparticularly roughforbusinesseswithrevenuebetweenzeroto50Lakhs(80%)and1Croreto5Crore(87.5%),with80%and87.5%ofall suchbusinessesreportingalossinrevenue.

Thebiggestfactorsthathelpedbusinessesreviveduringlockdownwereemployees(60%).Forbusinesseswitharevenueof zeroto50lakhs,employeesandclientswerethemostimportantfactorduringtheirrevivalfromthelockdown.Theyconsisted of53%and33%eachofthetotalresponsesbysuchbusinesses. Althoughtheclientpercentagecomesdowndrasticallyforthe otherthreerevenuecolumns.Theemployee’spercentageincreasesasweincreaseinrevenue.Itconstitutes67%ofresponses fromthe50lakhsto1croreand5croresto25croresrevenuecolumns,and63%ofresponsesfromthe1croreto5crores revenuecolumn.

Asforthefactthatshouldthelockdownhavehappenedornot,thereisaveryclearresponse.Forsmallerbusinesseswith revenuebetweenzeroto50 lakhs,67%ofbusinessesagreethatthelockdownshouldhavehappened.Aswemoveup in revenuethisnumberhoweverdecreasesdrastically.Forbusinesseswitharevenuebetween5croresto25crores,83%ofthem didnotwantthelockdowntohappen.

NumberofEmployees. 2 10 11 30 31 100 Above 100 Total Revenue Impacted Due to Lockdown ShutDown 1 1 1 3(3.9%) Decreasedby Above50% 6 1 7(21.9%) Decreasedby 25% 50% 3 6 9(28.1%) Decreasedby 0% 25% 6 1 7(21.9%) Noimpact 2 2(6.3%) Increasedby 0% 25% 1 1 2(6.3%) Increasedby 25% 50% 1 1(3.1%)

Duringtherevivalfromthelockdown,companyemployeesandclientsprovedtobethebiggesthelpfactorforbusinesses (78%).60%ofallbusinessesagreedthattheiremployeesweretheirbiggesthelpinrevivalfromlockdown.Therecanbe severalquestionsraisedaboutthefactthatonly2(6%)ofallbusinessessaidthatthegovernmentwastheirbiggesthelp.In suchtimesalittlemorehelpfromthegovernmentwouldprovetogoalongwayinliftingtheeconomyofthecountry.

Table -1: QuestionnaireResponsesBasedon

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p ISSN: 2395 0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page928 Increasedby Above50% 1 1(3.1%) Did the Opening of Lockdown v1.0 (25 March 31 May) help your Business? Yes 16 6 2 24(75%) No 4 3 1 8(25%) Did you avail of any Grant, Government Aid or Loan? Yes 0 2 1 1 4(12.5%) No 20 7 1 28(87.5%) What was the biggest factor that helped your business after the lockdown? Employees 9 8 2 19(59%) Government 1 1 2(6%) LocalInstitutions 2 2(6%) Noone 1 1(3%) Self motivation 1 1(3%) BusinessStrategy 1 1(3%) Clients 6 6(18%) Would you have preferred Lockdown v1.0 vs not having gone through it at all? Yes 10 8 1 19(59%) No 10 1 2 13(40%) What Steps did you Take to increase profitability? FiredEmployees 1 3 4(8.3%) CutDown onBonuses 5 5 1 11(22.9%) Shifted BusinessyourOnline 7 1 8(16.7%) NewIntroducedProducts 2 1 3(6.3%) ReduceSalaries 2 3 1 6(12.5%) NoProfits 1 1(2.1%) Tried ContinuetoOperations 1 1(2.1%) Save LeaseWorkspaceYourCost 4 3 1 8(16.7%) IncreasedVolume 1 1(2.1%) ImproveProductivity 1 1 2(4.2%) IncreasePrice oftheProduct 1 1 2(4.2%) Improvementin CustoFacilitatingmers 1 1(2.1%) Table 1: QuestionnaireResponsesBasedonTotalRevenue. Zero to 50 lakhs 50 lakhs to 1 Crore 1 toCrore5Crore 5 Crore to 25 Crore Total Revenue Impacted Due to Lockdown ShutDown 1 1 1 3(3.9%) Decreasedby Above50% 4 2 1 7(21.9%)

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p ISSN: 2395 0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page929 Decreasedby 25% 50% 4 1 4 9(28.1%) Decreasedby 0% 25% 3 1 3 7(21.9%) Noimpact 1 1 2(6.3%) Increasedby 0% 25% 1 1 2(6.3%) Increasedby 25% 50% 1 1(3.1%) Increasedby Above50% 1 1(3.1%) Did the Opening of Lockdown v1.0 (25 March 31 May) help your Business? Yes 10 2 8 4 24(75%) No 5 1 2 8(25%) Did you avail of any Grant, Government Aid or Loan? Yes 2 2 4(12.5%) No 13 3 8 4 28(87.5%) What was the biggest factor that helped your business after the lockdown? Employees 8 2 5 4 19(59%) Government 1 1 2(6%) LocalInstitutions 2 2(6%) NoOne 1 1(3%)

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p ISSN: 2395 0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page930 Self motivation 1 1(3%) BusinessStrategy 1 1(3%) Clients 5 1 6(18%) Would you have preferred Lockdown v1.0 vs not having gone through it at all? Yes 10 2 6 1 19(59%) No 5 1 2 5 13(40%) What Steps did you Take to increase profitability? FiredEmployees 1 3 4(8.3%) CutDown onBonuses 3 4 4 11(22.9%) Shifted BusinessyourOnline 6 1 1 8(16.7%) NIntroducedewProducts 1 2 3(6.3%) ReduceSalaries 2 3 1 6(12.5%) NoProfits 1 1(2.1%) Tried ContinuetoOperations 1 1(2.1%) Save LeaseWorkspaceYourCost 1 1 4 2 8(16.7%) IncreasedVolume 1 1(2.1%)

ThestudywasdistributedtomostbusinessesinKolkataandveryfewoutsideKolkata.Thus,dueto differentgovernmentrulesduringthelockdowns,theeffectonbusinesseswouldbeverydifferent CONCLUSIONS

Thestudywasdistributedtoacquaintances,friends,andfamilyacrossthecountryandthusmaybe biasedduetosomepersonalmotives. LimitedArea

The pandemic has had an undeniable impact on all sectors of business across the country to say the least. While a few businesseshaveseenpositiveimpactduetothelockdown,mosthaveseenadeclineorverylittlegrowth.Thetechnology industryhasseenapredictableriseduetoanonlinerevolutiontakingplace,wherebusinesses,contentandeverythingelseis shifting totheinternet.The negativeimpacton businessdue tothelockdown,however, will notbe everlasting. With the increaseinvaccinationandrestorationtonormal,thingsarestartingtosettledownandreturnbacktopre covidlevelsand evenmore.Theonlineshifthasallowedbusinessestosavemoneythroughrentalcostsandotherluxuryservicecostsinthe officebyshiftingonlinepermanently,somethingmanybusinessesarenowwillingtoadopt.Allinall,thepandemicposedalot ofchallengestothegeneralbusinessownerbutitcamewithitsownboonindisguise.

Thesamplesizeforthestudyisverysmallcomparedtotheentirepopulation.Asaresult,theeffectsofthe lockdownonthebusinessinquestionmaynotbeexactlythesamefortheentirepopulation. PersonalBias

REFERENCES [1] https://msme.gov.in/sites/default/files/MSME ANNUAL REPORT ENGLISH%202020 21.pdf

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p ISSN: 2395 0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page931 ImproveProductivity 1 1 2(4.2%) IncreasePrice oftheProduct 1 1 2(4.2%) Improvementin CFacilitatingustomers 1 1(2.1%) 3.1 Limitations of the Study: 1. Sampling