Data base to navigate MSMEs through COVID-19
As Sri Lanka resumes public and private sector activity amidst COVID-19 moving from a health crisis to an economic crisis, state authorities are now trying to ascertain how Micro, Small and Medium Enterprises’ (MSME) will weather this storm and where they need to focus efforts.
MSMEs have been directed to take part in a major survey to shed light on how the coronavirus is affecting their businesses and submit a self assessment on the impact of the ongoing pandemic on the sustenance of institutions and employees.
The Ministry of Small and Medium Business and Enterprise Development (SMBED) will be conducting this survey to assess the level and nature of the negative impact on MSMEs and their expected immediate relief.
Another aim is to devise an intermediate remedy as well as to formulate long-term growth and development strategies.
The SMBED Ministry in collaboration with its relevant institutions will appoint a consultant to undertake remote and rapid national MSME surveys as a COVID-19 response in the coming months, a senior Ministry official told the Business Times,
This will be the first MSME study in Sri Lanka which will be implemented using the virtual platform for designing, execution, monitoring, report generation, and report submission, he added. It will also use virtual management techniques and remote data collection applications during the COVID-19 social distancing period providing a new experience for MSMEs to get involved with the latest ICT applications.
MSMEs are required to submit details on the total number of employees, present situation of the establishment whether it is closed or in partial operation, reasons for closure, if it is closed is there any intention to reopen and reasons not to reopen.
Among the other questions are details of retrenchment and layoffs of employees during this period and steps to pay salaries for employees even if the business has been closed, or will remain closed for the coming few months and how MSMEs expect to pay workers who have been made to stay at home.
The number of MSMEs exceeds 1.4 million and of them over 500,000 are unregistered, Founder President of the Confederation of Micro, Small and Medium Industries (COSMI) Nawaz Rajabdeen told the Business Times.
SMEs account for more than 75 per cent of the total number of enterprises in Sri Lanka, provides 45 per cent of the employment and contributes 52 per cent of the Gross Domestic Product (GDP).
With the slowdown of economic activities due to the virus, SME activities have been affected and as a result, their employees too, he said adding that COSMI has already contacted over 70 foreign agencies seeking assistance to help the industry.
The Government should also provide assistance and opportunities for MSME’s to strengthen their base in agri-business sectors including spices, teas, specialty teas, herbal medicinal and beverage supplements, coconut and oils, and fruits and vegetables, he said. SMEs are also in ornamental fish and ocean fisheries including fishery cooperatives and processing.
These enterprises numbering over 1 million comprises employees, self-employed persons, employers, active partners and unpaid family workers who engage in economic activity.
There are three million people engaged in MSMEs related to industry, trade and services sectors of the country, Finance Ministry data showed.