Small business activity fast reaching near-normal levels: Report

Business activity of MSMEs - which are regarded as the backbone of economy - is fast reaching near-normal levels, and rapidly adopting digital tools to drive efficiency and growth, says a report

Business activity of the micro, small and medium enterprises - which are regarded as the backbone of Indian economy - is fast reaching near-normal levels, and rapidly adopting digital business tools to drive efficiency and growth, according to a report.

Out of 36, 16 states and UTs are witnessing business activity levels higher than pre-COVID times, while Karnataka, Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Delhi are trending at 90-95 per cent of their pre-COVID levels, as per the data gathered by startup OkCredit.

Bihar, Haryana, Assam, Rajasthan, and Himachal are the states where business activity is 10 per cent higher, it said.

Uttar Pradesh, Madhya Pradesh, Chhattishgarh, Odisha, Jharkhand, Uttarakhand, and Punjab are also exhibiting higher business activity, it added.

Businesses in tier 2 and tier 3 cities witnessing faster recovery than tier 1 cities, it said, adding the micro-retail players are increasingly taking up digital bookkeeping solutions, as it makes their book-keeping task simpler, digitised and secure and there is stronger demand coming from small towns and hinterlands.

It further said the company witnessed double-digit growth in businesses from medical and Kirana stores at 21 per cent and 15 per cent, respectively, in September 2020.

Data coming from remote regions of the country where OkCredit app is being adopted like never before and is recording strong growth in transactions and these trends point to a sharp recovery from pandemic induced slowdown among businesses in tier 2 and tier 3 cities as compared to the tier 1 cities, it added.