The American Express survey also showed small merchants are embracing new digital payment methods and innovative strategies to survive during the pandemic and as economy recovers.
More than half the small merchants surveyed by American Express for its 2021 report feel that the government’s new MSME guidelines will yield better financial opportunities and open doors to better schemes.
“A substantial majority of the merchants surveyed across the country believe that the government’s move to include retail and wholesale businesses in the MSME sector will enable them to engage with the formal financial sector leading to an industry-wide overhaul with better business prospects,” said an American Express statement.
As merchants look forward to more sectoral legitimacy by getting the MSME classification, they are also confident of their economic resilience in the wake of a potential third wave of the pandemic, it said.
Further, over 50 per cent of the merchants have accelerated the use of digital payment and 46 per cent have adopted safety measures and maintain cleanliness inside the stores.
Cashless payments, new delivery methods, increased efforts to advertise, and in-store safety measures and hygiene have become critical for consumer trust and business continuity. By adopting such measures, the report cites that 64 percent of the small merchants are confident that their businesses will survive amid speculations of the third wave of Covid-19.
“The resilience shown by small businesses during these times is admirable. They have constantly invested in new ways to improve their business model and communication with the customers. This fact is also recognised by 82 per cent of surveyed customers who stated that local shops and small businesses established new ways of interacting with them which were not available pre-pandemic,” American Express Banking Corp India SVP and CEO Manoj Adlakha said.