MSME meltdown looming as global uncertainty persists

Business Economy

Posted by AI on 2025-08-20 18:53:42 | Last Updated by AI on 2025-08-20 21:29:32

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"Lights are going out across the Indian Ocean" warns Prof Ram Singh, as signs of distress in growth and employment for MSMEs are visible in sectors reliant upon the US market. Global uncertainty remains a major drag on growth, with fewer new deals and projects amid geopolitical tensions. This is causing a cascade of cancellations or delays across supply chains.

Prof Singh, CEO of TiE SoCal, Southern California's leading nonprofit organization for fostering entrepreneurship, believes that the situation is dire for small businesses. Statements from the recently concluded World Trade Organization summit support his view that very few countries are immune to the global slowdown, and that uncertainty in external demand is a major drag on growth.

The impact is particularly painful for small business owners who have struggled to keep their doors open during the pandemic. Many relied heavily on raw materials imported from China, or on tourism and hospitality sectors, for their income. With fewer new deals and projects in the pipeline, it's difficult to plan ahead and hire more employees.

However, not all hope is lost according to Prof Singh, as the current environment also has opportunities for entrepreneurial leaders to explore avenues hitherto not contemplated. These could include expansion into new markets, development of new products, improvement in productivity and cost-cutting measures.

In conclusion, with a note of optimism, Prof Singh urges small business owners to explore diversification strategies while remaining vigilant and adaptive to market trends and realities.

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