Rising inflation hurts more than just families – hurts their businesses too (11/4/2022)
Rising inflation hurts more than just families – hurts their businesses too
As study by SPJIMR, revealed a greater than anticipated impact of inflation on family-run MSMEs.
An increase of 19.5% in operating costs was reported by these family-run due to the 6.07% CPI retail inflation rate and 13.11% Wholesale Price Index-based inflation, as per data released by National Statistical Office.
To cope with it, the enterprises have not only opted for a price increase (unsustainable strategy) but also taken steps to improve their receivable collections and cash flow cycles through renegotiating contracts. Further price increases are expected in the 3-12 month period.
