How startups are faring during pandemic | Economic Times

A United Nations survey found that only 47% of young entrepreneurs and startups were confident of sustaining beyond six months, as they were hit by disruptions caused by the Covid-19 pandemic, while 25% did not see themselves lasting beyond one to six months. The survey was part of a joint report, by UNDP and Atal Innovation Mission under the NITI Aayog, which batted for steps to incentivise social and green startups in the form of adequate capital support, easing of regulations and compliances to aid the sector. About 60% of young entrepreneurs and startups took a hit due to disruptions caused by the pandemic and reported very high to high negative impact and 67% cited growing financial challenge as a key concern, as per the survey, a copy of which was seen by ET.More than 1,000 young entrepreneurs across sectors, including health and education, were covered in the survey on issues ranging from access to finance, disruption in supply chains and perceptions towards business recovery after the pandemic. “High impact was seen on the social enterprises which were smaller in size as many investors had put investments on hold. This led to a cash crunch and some of the social enterprises either suspended their work temporarily or were forced to close down,” said the report.“Lack of finance and absence of a safety net if an entrepreneur fails are some of the key issues to be addressed,” Amit Kumar, head (inclusive growth), UNDP told ET.Urgent Measures NeededThe report advocated a reduction in time in providing support and benefits to entrepreneurs.“There is also a need for improvement in existing policies to reduce unnecessary regulations and compliances to make the journey smoother for enterprises,” it said. 85332814