What about small businesses during the COVID-19 crisis?
Real Estate

What about small businesses during the COVID-19 crisis?

Small businesses which are part of the supply chain of larger companies need to have a dialogue with their buyers which are large corporations whether they can be provided safety protocol gear and facilities to adhere to production schedules. Fertilisers, chemicals, pharmaceuticals, municipal corporations, defence, etc, are already working by observing safety protocols. Industrial estates and complexes can also similarly make it mandatory for their zones to have an understanding on mandatory conditions to be followed. Here, the penalty would be that the discovery of a single infected person could bring the entire complex under a lockdown by the authorities. Hence, only very responsible companies which are part of such complexes can take this call.

Small businesses are being constantly reminded that they should not retrench employees but they do not have any means of keeping afloat. The deferment of EMIs  for three months is a definite good step but the offer of payment of Provident Fund dues by the government has riders which exclude several small businesses. Loans to small businesses are not provided without security though the government is intending that banks would act otherwise. Extending greater loans for keeping small businesses afloat may also seep the enterprises into debt as the model of their businesses may not stand the test of time with the revised decline in demand post-COVID-19 scenario. Entrepreneurs need to examine the breakeven point under revised circumstances and assume the responsibility of further debt.

Relief must include ease in compliance of GST, leniency in NPA norms for banks, tax filing firms to be provided with an additional 50 per cent working capital limit on their existing limits without any additional security, etc. Demand for all non-essential items will take a beating, and therefore, several companies need to essentially decide whether they can sustain the deficit and whether their business can spring right back soon after or would the demand just collapse or evaporate. A relief package for sustaining small businesses is in the works and must help address their liquidity issues on an urgent basis without too much of red tape. There is also an urgent need to refund taxes and incentives to exporters must be released.

Also read:
How to restart the economy during COVID-19 
Is the government doing enough to handle the crisis? 
Construction and Infrastructure can kickstart the economic engines
How will the future Post-COVID19 unfold? 

About the Author: A chartered account by qualification, Pratap Padode is the founder of ASAPP Info Global Group and his passion for infrastructure over last 20 years is reflected in the innovative thought leadership through 10 specialised journals, conferences and awards organised in the fields of construction, infrastructure and engineering. CONSTRUCTION WORLD was the first journal that he began with over 20 years ago. Further, he is the Founder & Executive Director of FIRST (Foundation of Infrastructure Research Studies Training ), which was set up in 2003, that brings out research reports and newsletters on various infrastructure segments. He received the CIDC Vishwakarma Award 2010 for his research in the construction sector. Since early 2014, he has been promoting the cause of smart cities in India and is now Founder & Executive Director of the Smart Cities Council India.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Small businesses which are part of the supply chain of larger companies need to have a dialogue with their buyers which are large corporations whether they can be provided safety protocol gear and facilities to adhere to production schedules. Fertilisers, chemicals, pharmaceuticals, municipal corporations, defence, etc, are already working by observing safety protocols. Industrial estates and complexes can also similarly make it mandatory for their zones to have an understanding on mandatory conditions to be followed. Here, the penalty would be that the discovery of a single infected person could bring the entire complex under a lockdown by the authorities. Hence, only very responsible companies which are part of such complexes can take this call. Small businesses are being constantly reminded that they should not retrench employees but they do not have any means of keeping afloat. The deferment of EMIs  for three months is a definite good step but the offer of payment of Provident Fund dues by the government has riders which exclude several small businesses. Loans to small businesses are not provided without security though the government is intending that banks would act otherwise. Extending greater loans for keeping small businesses afloat may also seep the enterprises into debt as the model of their businesses may not stand the test of time with the revised decline in demand post-COVID-19 scenario. Entrepreneurs need to examine the breakeven point under revised circumstances and assume the responsibility of further debt. Relief must include ease in compliance of GST, leniency in NPA norms for banks, tax filing firms to be provided with an additional 50 per cent working capital limit on their existing limits without any additional security, etc. Demand for all non-essential items will take a beating, and therefore, several companies need to essentially decide whether they can sustain the deficit and whether their business can spring right back soon after or would the demand just collapse or evaporate. A relief package for sustaining small businesses is in the works and must help address their liquidity issues on an urgent basis without too much of red tape. There is also an urgent need to refund taxes and incentives to exporters must be released. Also read: How to restart the economy during COVID-19  Is the government doing enough to handle the crisis?  Construction and Infrastructure can kickstart the economic engines How will the future Post-COVID19 unfold?  About the Author: A chartered account by qualification, Pratap Padode is the founder of ASAPP Info Global Group and his passion for infrastructure over last 20 years is reflected in the innovative thought leadership through 10 specialised journals, conferences and awards organised in the fields of construction, infrastructure and engineering. CONSTRUCTION WORLD was the first journal that he began with over 20 years ago. Further, he is the Founder & Executive Director of FIRST (Foundation of Infrastructure Research Studies Training ), which was set up in 2003, that brings out research reports and newsletters on various infrastructure segments. He received the CIDC Vishwakarma Award 2010 for his research in the construction sector. Since early 2014, he has been promoting the cause of smart cities in India and is now Founder & Executive Director of the Smart Cities Council India.

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?