Rise of Next Generation Entrepreneurs Through Innovative Digital Strategies in MSMEs During COVID-19

1. Introduction

In an economy where consumer demand is the dominant driver of growth, small businesses’ ability to adapt, pivot, and use ingenuity to survive may not be sustainable. Growth is essential for the sustainability of any business venture. Business plans should be able to increase their relative market share and earnings in a stringent regulatory environment. The global pandemic has sunk consumer confidence to new lows, with the Treasury Department of India’s monthly survey index recording 49.9 in September, the lowest level ever (Sanghera, 2020). India already struggled to give its people enough jobs, and the country’s inflation rate is unusually high, putting household income under strain and potentially posing insurmountable challenges for many struggling small businesses.

The Indian government has launched a $42 billion collateral-free credit scheme to assist cash-strapped micro, small, and medium enterprises (MSMEs). According to government figures, around $20 billion had reached businesses as of November. Medium-sized and small-sized companies, as well as entrepreneurship, account for over one-third of India’s GDP. But still, the industry is more vulnerable to catastrophes like the recent epidemic since it frequently has fewer resources than major businesses. The digital reboot has enabled the adoption of frictionless, electronic technology for money transfers, the opening of diverse markets, and the acceleration of employment by tech-focused enterprises. Digitalisation enabled remote working during the pandemic and tried to rebalance the workforce from migration towards metropolitan cities for new job opportunities.