According to the research conducted by Kantar. A market research firm, only one-third of the Small and Medium Businesses (SMBs) are willing to use at least one benefit under the new Aatmnirbhar Scheme (Self-Reliant Scheme) launched by the Prime Minister of India, Narendra Modi.
The survey found that these SMB owners were more interested in the schemes that provided some immediate cash benefits of any kind rather than those providing long term benefits or growth. The survey also found that while 68% of the SMB owners knew about the scheme, only 32% wanted to avail at least one of the benefits, as provided under the scheme. The failure of the credit guarantee scheme and loan schemes in managing the working capital during the pandemic has resulted in lower uptake of the scheme.
The SMB owners informed that during April, more than half of the owners had sufficient working capital for the upcoming two months, which dropped to 30%, resulting in a drop in the requirement of the scheme.
“Businesses have figured out how to manage their working capital. The requirement of loans at market interest rates is something that’s not really appealing for SMBs,” said Biswapriya Bhattacharjee, executive V-P of the insights division at Kantar.
Most of the businessmen are interested in schemes that can provide an instant financial benefit like extension in filing Income Tax 
Get all due dates of income tax return and payment of advance taxes for FY 2019-20 (AY 2020-21). We update the last date as per the IT department’s notifications. Read more and GST (Goods and Services Tax), returns rather than the one providing long term benefits. The survey showed that only 12% of the MSMEs (Micro, Small and Medium Enterprises) wanted to avail the benefit of loans at lower interest rates, as provided under the scheme.
Only 6% of the businessmen wanted to avail the benefits of the government’s Rs 20,000 crore debt provision for over 2 Lakh entrepreneurs. Only 4% wanted to avail the benefit of the provision under the scheme which provides 100% government credit guarantee cover. Only 3% of the businessmen found that the reduction of EPF from 12% to 10% is beneficial.
Outline the scale of impact of the lockdown on the businesses, Bhattacharjee said the “expectation would have been that a lot more businesses should have been aware of this (Atmanirbhar Bharat initiative) because it’s for their own benefit.”
The survey also found that more SMBs outside the seven metro cities are availing the benefits under the scheme, than those within. Bhattacharjee said that with the help of better technology and reverse migration, SMBs in the metro cities were able to cut the costs better than those outsides which forced the SMBs outside the cities to opt for the benefits under the scheme.
Amit Maheshwari, the Managing Partner at Ashok Maheshwary & Associates (chartered accountancy firm), said that these businessmen looking for the schemes that can reduce the cost in some way rather than those, which can provide long term benefits to the business, shows a lock of visibility form the owners’ end.
“Businesses are looking to bring down debt at this time, not increase it by taking more loans. They’re more inclined to conserve cash by cutting costs – by reducing headcount, cutting salaries, giving up their leases. That’s also why there are more takers for deferring payment of income tax and GST under the government schemes, which is helpful immediately,” added Maheshwari.
