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71% of MSMEs are Optimistic About Business Growth in the Next Six Months of 2022

71% of MSME businesses are highly optimistic about the growth in the next six months of 2022, and only 5% expect a dip in this time frame. The survey studies data of 7295 MSMEs across every state and various business categories in the country. 

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The first six months of 2022 have been a transition phase to the pre-pandemic way of operating businesses for the MSMEs in the country. As per Khatabook’s 2022 Mid-Year MSME Business Sentiment Survey results, unveiled today, 71% of MSME businesses are highly optimistic about the growth in the next six months of 2022, and only 5% expect a dip in this time frame. The survey studies data of 7295 MSMEs across every state and various business categories in the country.

As per this 6-monthly MSME business sentiment survey series by the startup, the business growth optimism sentiment has been steadily improving over one year. Also, this improved business growth optimism score is witnessed across MSMEs – retailers, wholesalers, distributors, and manufacturers. This trend can be attributed to MSMEs’ strong actual business performance in the first two quarters of 2022. 58% of MSME businesses confirmed improvement in the actual business in 2022. The first six months of 2022 have been growth positive for MSMEs across all categories and regions. MSME ecosystems in all the states are growth positive, with Telangana, Rajasthan, Maharashtra, and Gujarat being the top growth positive states. 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% 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.

Commenting on the key findings of the survey, Ravish Naresh, CEO, and Co-founder, Khatabook, said, “Major transitions and shifts in the business environment have become frequent. Our 6-monthly MSME business sentiment survey series has been extremely useful in monitoring the changes in sentiments and actual business performance of MSMEs. The survey also showcases the resilience and positive outlook of the MSME community towards business growth and willingness to adopt new methods that will help with growth momentum while handling the transitions. The feedback on challenges faced by MSMEs around Issues like credit availability, liquidity, and payment collection is in line with our product development focus at Khatabook.”

41% of MSMEs had reported improvement in the actual business in the second half of 2021, while 58% of MSMEs confirmed actual business improvement in 2022. The business improvement in 2022 is in line with the high optimism score for business improvement in Khatabook’s previous survey results. “We are seeing a steady improvement in the actual business performance. For the next two quarters in 2022, 71% 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,” Ravish added. Only 14% of businesses saw a dip in 2022 compared to 23% in the last two quarters of 2021.

Khatabook and Biz Analyst by Khatabook provides millions of MSMEs in India with digital business capabilities to manage their finances and day-to-day operations. The FinTech startup aims to empower MSMEs – be they a retailer, a wholesaler, a distributor, a professional service provider, or a manufacturer – by making their business execution convenient, profitable, and efficient through its platforms. Khatabook and Biz Analyst platforms record more than 1.8 trillion Monthly Transactions on the platform from the MSMEs across every district of India.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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