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A STUDY ON IMPACT OF COVID-19 IN SMALL SCALE BUSINESS WITH SPECIAL

REFERENCE TO TIRUPUR CITY

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 A STUDY ON IMPACT OF COVID-19 IN SMALL SCALE BUSINESS WITH SPECIAL
REFERENCE TO TIRUPUR CITY

Dr . R. SRIDEVI (ASSISTAN PROFESSOR) DEPARTMENT OF COMMERCE WITH

PROFESSIONAL ACCOUNTING SRI RAMAKRISHNA COLLEGE OF ARTS AND SCIENCE,
COIMBATORE
RAJVEER B (UG FINAL YEAR STUDENT) DEPARTMENT OF COMMERCE WITH
PROFESSIONAL ACCOUNTING SRI RAMAKRISHNA COLLEGE OF ARTS AND SCIENCE,
COIMBATORE

ABSTRACT
This study attempts to analyse the impact of COVID-19 in the small scale business. The study has
been conducted on 51 respondents from the different areas of Tirupur city through online mode by
using an online questionnaire using convenience sampling technique.
KEY WORDS: Small scale business, Covid-19, Crisis On Lockdown

INTRODUCTION
It is well-known that small scale businesses are the backbone of the Indian economy,and it is one of
the most crucial segments in the economy. As a very important segment of the Indian economy,
small scale business have arisen and making a major contribution to the production, creativity,
export and inclusive economic development. The World Health Organization declared Coronavirus
as a pandemic, and due to this, the whole economy has gone into recession. This pandemic has
affected the personal life of an individual and all the sectors of the country. However, the pandemic
has affected every corner of the country like trade, investment, education, agricultural sectors, and
the business sector.

STATEMENT OF THE PROBLEM:

Due to Corona virus, Extended lockdown had impact on supply of finished goods, procurement of
raw material and availability of employees to work in production and supply processes .Many
entrepreneurs and innovators suffered decline of Revenue. This has led to high risk of inability to
pay wages, debts, loan installments to banks from the business.

OBJECTIVE:
 To explore the impact of COVID 19 on small scale business during covid-19
 To study the effects of Covid 19 on the livelihoods of Entrepreneurs
 To analyse how the business sector functioned during covid 19.

REVIEW OF LITERATURE:
 Yi Lu and his co-authors observed that, because of lack of disease prevention resources,
workers' failure to return to work, production lines interrupted, and a decreased business demand,
most small businesses were unable to restart work.
 Jamuar (1992) in his investigation talks about the improvement of small Industries and house
Industry in India and the job of small-scale Industries in India, the current position and issues of
small Industries Industry with extraordinary references to Industrial disorder, government
strategy and measures to grow small Industries and Industrial policy and new Industrial approach
for small-scale and cottage Industry.
 Rama Swamy (1993) in his investigation inspects three theory with respect to little scope
fabricating units, to be specific: small firms use more labour per unit of capital, they produce
more yield per unit of capital and small firms use assets more productively than huge firms in to
Ms of all out Factor Productivity

Utkal Historical Research Journal, ISSN : 0976-2132 Vol.-34(XX), 2021 132

RESEARCH METHODOLOGY
SAMPLE SIZE : 51 RESPONDENTS
SAMPLE DESIGN : CONVENIENT SAMPLE
AREA : TIRUPUR
TOOLS USED : 1) PERCENTAGE ANALYSIS
2) CHI – SQUARE TEST

LIMITATIONS OF THE STUDY

The study is subject to the following limitations:
 Due to limited availability of time, the respondents from the city of Tirupur is selected, thus
it cannot ne claimed to be a comprehensive study of the population.
 The sample size is restricted to 51 respondents.

ANALYSIS AND INTERPRETATION:

SOCIO ECONOMIC FACTORS
GENDER
GENDER NO. OF RESPONDENTS PERCENTAGE
MALE 39 76.5
FEMALE 12 23.5
TOTAL 51 100

MARITAL STATUS
MARITAL STATUS NO. OF RESPONDENTS PERCENTAGE
MARRIED 42 82.4
FEMALE 9 17.6
TOTAL 51 100

NATURE OF BUSINESS
NATURE OF BUSINESS NO. OF RESPONDENTS PERCENTAGE
SOLE PROPRIETOR 39 76.5
PARTNERSHIP 9 17.6
COMPANY 3 5.9
TOTAL 51 100
The above table revels that out of 51 respondents , 76.5% people are Sole Proprietor, 17.6% people
are Partnership and 5.9 % of them are Company. .
EDUCATIONAL SKILLS
EDCATIONAL SKILLS NO. OF RESPONDENTS PERCENTAGE
BELOW 10TH STD 10 19.6
HSC 17 33.3
UG 24 47.1
TOTAL 51 100
The above table revels that out of 51 respondents , 19.6% of People are studied in Below 10th std,
33.3% of People are studied in Higher Secondary Level and 47.1 % of People are studied in
Undergraduate Courses.
ANNUAL AGGREGATE TURNOVER
TURNOVER NO. OF RESPONDENTS PERCENTAGE
BELOW 10 LAKHS 12 23.5
10 LAKHS TO 20 LAKHS 16 31.4
Utkal Historical Research Journal, ISSN : 0976-2132 Vol.-34(XX), 2021 133
20 LAKHS TO 1.5 CRORE 16 31.4
ABOVE 1.5 CRORE 7 13.7
TOTAL 51 100
The above table revels that out of 51 respondents , 23.5% of People are in turnover of Below 10
Lakhs, 31.4% of People are in turnover of 10 Lakhs to 20 Lakhs and 31.4 % of People are in
turnover of 20 Lakhs to 1.5 Crore and 7% of People are in turnover of Above 1.5 Crore.
Business's operations being impacted by No.of
covid-19 Respondents Percentage
We have completely closed our physical place of business 27 52.9
We have adjusted our hours of operation 17 33.4
Our supply chain is interrupted 4 7.8
We are experiencing significant increases in consumer
demand for certain items 3 5.9
Total 51 100
The above table revels that out of 51 respondents , 52.9% of People are completely closed thier
physical place of business , 33.4% of People are adjusted their hours of operation and 7.8 % of
People’s Supply Chain is Interrupted and 5.9% of People are experiencing significant increases in
consumer demand for certain items.
PRICE FLUCTATIONS FOR GOODS AND SERVICES

Price Fluctations for goods and services No.of Responses Percentage

Price Increased Morethan Normal 21 41.2
Price Decreased Morethan Normal 11 21.5
Price Didn't Change Any Morethan Normal 12 23.5
No Change 7 13.8
Total 51 100
TOTAL REVENUE COMPARED TO LAST YEAR
Total Revenue Compared To Last Year No.of Responses Percentage
Increases 8 15.7
Decreases 21 41.2
Same as Last Year 16 31.4
Unable to judge 6 11.7
Total 51 100

CHI- SQUARE TEST – 1

HYPOTHESIS
There is no significant difference between Place of residence and Actions taking on Your Sales.
Diversifying sales Diversifying in to Total
Place of residence
channels - online products to respond to
marketing, sales, delivery new demand
Rural 9 11 20
Urban 9 22 31
Grand Total 18 33 51
SOURCE: PRIMARY DATA
INTERPRETATION:
Chi-Square Tests

Utkal Historical Research Journal, ISSN : 0976-2132 Vol.-34(XX), 2021 134

 Asymptotic
Significance Exact Sig. (2- Exact Sig. (1-
Value df (2-sided) sided) sided)
Pearson Chi-Square 1.357a 1 .244
Continuity .748 1 .387
Correctionb
Likelihood Ratio 1.346 1 .246
Fisher's Exact Test .368 .193
N of Valid Cases 51
0 cells (0.0%) have expected count less than 5. The minimum expected count is 7.06.
From the calculation , it is found the table value is lesser than the calculated value ,
thus it can be concluded that place of residence and actions taking on your sales is differ
significantly.

CHI- SQUARE TEST – 2

There is no significant differences between their incomes and Strategies adopted to cope with
crisis.
Income Per Deferring Hold the Loan to Sourcing from new Temporary Grand
month repayments/EMIs Expansions Employees suppliers/revisiting reduction of Total
of bank loans and Growth and other the vendors from employees
Enterprises cost perspective
Above Rs.
40000 5 1 0 2 4 12
Rs. 15001 to
Rs. 30000 6 7 1 5 1 20
Rs. 30001 to
Rs.40000 8 0 1 3 2 14
Rs. 5000 to
Rs.15000 2 2 0 0 1 5
Grand Total 21 10 2 10 8 51
SOURCE: PRIMARY DATA
INTERPRETATION:
Chi-Square Tests
Asymptotic
Value df Significance (2-sided)
a
Pearson Chi-Square 14.841 12 .250
Likelihood Ratio 18.550 12 .100
N of Valid Cases 51
From the calculation , it is found the table value is lesser than the calculated value ,
thus it can be concluded that Income and strategies adopted to coped with crisis is differ
significantly.

KEY FINDINGS:
1. As per data the collected from the respondents, Most of the business persons are impacted by
Lock Down.
2. Most of them are completely closed the business places during lock down.
3. The Main challenges faced by the business persons are Labour Migration and shortage of raw
materials.
4. The Shortage of Raw materials problems has been solved with the various activities such as
Reduction Production and Outsourcing of orders.
5. The price of raw materials increases due to the demand for the product.

Utkal Historical Research Journal, ISSN : 0976-2132 Vol.-34(XX), 2021 135

 6. The wages for labour has been increased due to the crisis.
7. The selling price for the goods has been increased morethan normal level.
8. Majority of the people are facing with cash flow problems, they are getting loans with
commercial banks and private individuals.
9. Revenue of the majority people has decreased due to the crisis as compared to the last year.
10. Majority of the persons are fully completed their statutory obligations.
11. Most of them responded that their business are facing severe risk.

CONCLUSION:
During the covid-19 period, the small scale business are struggling and facing many
problems due to the demand. The Business persons should cope up the crisis with the new
policies and support by the government for the development of the business. Lockdowns have
forced the business persons, to take a digital sales. They need to provide online services, right
from onboarding to payment. There were no alternative options whatsoever as financial
resources were reducing workforce and workers returned to their home towns. However, the
workers who remained lacked managerial expertise to tackle crisis. The study thus proposed
remedial measures to be given by government such as flow of cash liquidity and tax relief for
safeguarding the interests of entrepreneurs. As said by Charlie Chaplin, "Nothing is permanent
in this world, not even our troubles." All the activities are lessons for the future development.

REFERENCES:
1. https://www.researchgate.net/publication/344140421_Title_Study_of_impact_of_coro
navirus_pandemic_on_small_and_medium_enterprises_SME's_in_India
2. http://shabdbooks.com/gallery/65-oct2020.pdf
3. Dr. D.Paul Dhinakaran, “Exports and Imports Stagnation in India During Covid-19- A
Review” GIS Business (ISSN: 1430-3663 Vol-15-Issue-4-April-2020).
4. https://www.researchgate.net/publication/331350701_Small_Scale_Industries_and_Fa
ctors_Affecting_their_Performance_in_Indian_Context_A_Literature_Review
5. http://ijirms.com/downloads/1708202003082020-1.pdf

Utkal Historical Research Journal, ISSN : 0976-2132 Vol.-34(XX), 2021 136

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