A survey covering responses from 7,295 MSME businesses has revealed 71 per cent of them are optimistic about growth in the remaining six months of 2022 and only 5 per cent expect a dip in this time frame.
The 2022 Mid-Year MSME Business Sentiment Survey by fintech firm Khatabook also found that the first six months of 2022 have been growth positive for Micro, Small and Medium Enterprises (MSMEs) across all categories and regions.
According to the survey, MSME ecosystems in all the states are growth positive, with Telangana, Rajasthan, Maharashtra and Gujarat being at the top. All the categories have displayed growth, including those in negative growth in 2021, like industrial services, stationery and home furnishing. Pharma, salons, and restaurants/eatery are the top growth categories in the first two quarters of 2022.
About 66 per cent of businesses mentioned they had no significant business-related issues. In contrast, others said weak demand, credit availability and liquidity, and payment collection were some of the major concerns, found the survey.
Of 7,295 MSMEs surveyed, 58 per cent witnessed improvement in business from January to June 2022, while 14 per cent of businesses saw a dip in business during the period as compared to 23 per cent in the last six months of 2021.
Sentiment improved across retailers, wholesalers, distributors and manufacturers. Major improvement was seen among wholesalers and distributors, while manufacturers saw the least improvement in sentiment index scores, the survey found.
Ravish Naresh, CEO, and co-founder, Khatabook, said, "We are seeing a steady improvement in the actual business performance. For the next two quarters in 2022, 71 per cent is a high business performance optimism score by the MSME community. I hope the actual business performance feedback in the next survey aligns with this optimism score".