The COVID-19 pandemic has hit most businesses. No one anticipated such a crisis and most entrepreneurs were taken for a surprise. Here we interact with some young Naga entrepreneurs to find out their views.
He employs about 200 people in his establishments.
Impact of Covid-19 on business“Entrepreneurs can play a vital role at a time like this for speedy recovery by offering products/services that may be the need of the hour. Like minded businesses should also collaborate to make bigger impact.”
Business is definitely not as usual when the nation has been observing a complete lockdown. The impact of the current pandemic has been a “never expected” kind of a hopeless situation. It is a sudden human tragedy which has affected the entire nation and the world over, with a growing impact that is fast paced, threatening our existing business perspective to be outdated. Although, Nagaland in particular has no reported positive cases so far, but one thing may be certain that post the lockdown, business may not be the same again for all, however, giving birth to new opportunities in sectors which was not given it’s due share of importance in the state.
FreshZola, is a venture born on the day nationwide lockdown was imposed. It is a pivotal business, forced by the current turn of events, seizing unusual opportunity to extend into new areas, primarily for sustenance of my existing workforce.
Expectations from the governmentThere is a pressing need for economic measures to stabilize and stimulate the economy and protect people’s jobs and livelihoods. We may witness many business shut shop in the near future which will result to loss of jobs, to reduce the impact, I think the Government should assist business/entrepreneurs with financial assistance by way of loans with reduced interest/liability after proper assessment. Learnings from the lockdown
The current crisis has led to many unrelated business players in the country to explore merger/partner to sell groceries. Zomato in partnership with Grofers, Meesho via Ninjakart, Paytm Mall via Dealshare, Perpule via Vishal Megamart and NoBroker via Bigbasket. The lockdown has forced entrepreneurs reorganise, innovate and transition to an updated version of our old business. Currently, FreshZola allows us to support 25 employees from our other firms, who under the current circumstances would have been unemployed and without salary.
Learnings – Entrepreneurs can play a vital role at a time like this for speedy recovery by offering products/services that may be the need of the hour. Like minded businesses should also collaborate to make bigger impact.
Message to fellow entrepreneurs“We may be under a lockdown, but we should not lock up innovation as an Entrepreneur”
We may be under a lockdown, but we should not lock up innovation as an Entrepreneur, as much as healthcare workers and the police force are considered the frontliners. Entrepreneur’s too should be on the frontline in terms of taking innovative approach and offering innovative products/services to reduce the impact. (For Eg: Local made PPE’s, Delivery Services, etc). As we fight this pandemic together, governments, businesses, civil society and citizens require great resilience and adaptability. With an approach that includes the whole society, together we can and will fight this coronavirus pandemic.
ilandlo.com is an ecommerce and Logistics (ILS) company started by Lipokjungla and her husband Imtisunep in the year 2014. The company currently has 8 employees across Dimapur, Kohima and Mokokchung. It promotes Local businesses and entrepreneurs of North east india, sell and deliver their products all over India. Its logistics service ILS provides delivery service locally as well as Nationally.
Impact of Covid19 on business“Before covid19…both government and private entities promoted entrepreneurship like it was the next big thing. Now, entrepreneurs and startups are the most vulnerable group.. however there is little in the news about how the Government will be assisting us entrepreneurs.”
Once the lockdown started, our business has been shut in Mokokchung and Kohima. In Dimapur, we are providing home deliveries of groceries and essentials items.
Positive impact:
a. We are able to help our farmers and SHGs sell their products with Ilandlo as a marketing channel in collaboration with BAN, NRLM, Bade FPO and local manufacturers and producers in Dimapur.
b. We now collaborate with several delivery teams to work together and focus on keeping the community safe at home at this current situation, sharing responsibilities whenever or however we can.
Negative impact:
1. With the rising concerns about the COVID-19 situation, most of our delivery staffs preferred to stay home because of pressure from parents to quit, colony lockdown and personal safety while on the streets. We made sure it was voluntary knowing the risks they had to face. We also at our own capacity provided hand sanitizers, gloves, disinfectants etc. However, we can’t force them to come and work hence, we are facing a very low work force.
2. Our express stores are shut but we still have to pay rent, utility bills, salaries in three different districts of Nagaland and loan EMI.
3. We can no longer ship or source products from outside dimapur until inter and intra state transportation opens in Nagaland which was our primary target market.
4. Since the delivery was only for essential items, our inventory for other categories like accessories, clothing, handmade items were on hold.
1. Recognition and appreciation: Before covid19, almost everything in Nagaland was about Entrepreneurs and Entrepreneurship. Both government and private entities promoted it like it was the next big thing. Now, entrepreneurs and startups are the most vulnerable groups in the current scenario however there is nothing going on in the news about how the Government will be assisting us entrepreneurs. We are still surviving with our own sweat. If the government can recognize and appreciate the contributions of Naga entrepreneurs, support us to grow and boost the economy, there won’t have been any problem even after the sealing of Marwaripatti /Murgipatti areas.
2. Respect: Ilandlo as an online ecommerce and delivery service or any other delivery service companies working in all districts of Nagaland should be respected as frontline workers especially the delivery agents. They should not feel scared of getting beaten up or questioned when they go out for deliveries by those where are supposed to be protecting them as long as they have the right documents and in the job. Government and administration should in fact join hands with the delivery partners, streamline the procedures to procure and deliver so that everyone can stay home and feel safe.
Assistance from governmentTonight, we received information about our government providing financial assistance to delivery companies. We are finally recognized and appreciated and would like to thank the government. With this, all the delivery teams will be encouraged to work harder and most importantly help us get essential kits for the health and safety of everyone involved.
We try to provide with the necessity safety requirements like hand sanitizers, gloves etc however should things get worse in the future, god forbid, there should be a provision of health coverage schemes for the delivery companies and agents involved.
Challengesa. The supply chain with vendors and customers is a big problem because of the restrictions in mobility, availability of resources and procurement.
b. Strategizing our business in terms of whether to shut down or continue with our other branches in the state, employee retention, workspace upgrades and SOPs for the current and post pandemic.
c. Lack of Manpower
d. The risks involved considering the nature of service we provide.
Learnings“The most important learning is to maintain cash reserve for any unforeseen events.”
a. The most important learning is to maintain cash reserve for any unforeseen events.
b. That we should be able to make wise strategic decisions in a short span of time, be flexible and learn to adapt to change and turn challenges into opportunities
c. The importance of how our local businesses need to support one another and take an upper hand in the market.
d. The potential of farming and agriculture in Nagaland, to create an ecosystem of self sustainability and economic growth.
Collaborate and grow together.
Hongba started FINGERPRINT in the year 2016. Fingerprint is a designing and printing solution firm with a current strength of 15 staff.
Impact of Covid19 on business“We expect the Central government to help genuine small business to avail loan without too much paperwork so that we can reduce the cash crunch that we need for working capital.”
i. Since there is no business, there is a huge cash crunch to payoff salaries, rents, bills (electricity, Internet etc)
ii. Low Working Capital when the business starts after the lockdown ends.
iii. Dispruption of supply chain as most of our material comes from China and other parts of India. With no transportation and interstate travel, we will be facing shortage of printing material for 3-4 months even after the lockdown ends.
iv. Expecting low business after the Market re-opens due to fear of return of Virus. Another reason is that most of the events that we were working on has been cancelled or postponed and many customers will opt to cut down their cost in all their workings due to economic recession.
Personally, I don’t expect any financial package will be offered from the State Government but we do expect the Central government to help genuine small business to avail loan without too much paperwork so that we can reduce the cash crunch that we need for working capital.
Also, State Government can help Naga entrepreneurs through Loans from the State agencies like NIDC, State co-operative Bank etc and encourage other financial institutions like NEDFI to provide loan without too much paper work requirements.
ChallengesThe biggest challenge for our company would be to reconnect with our customers and infuse the same confidence in our service and just hope that the economy gets back to normal.
Learnings from the lockdownThe state needs to have a separate Institution or commission to coordinate, monitor and provide help and consultation to Naga entrepreneurs, not only during such lockdown or slow economy but even during the normal situation – so that we don’t lose out great ideas and entrepreneurs because of poor support to the Naga Entrepreneurs.
Message to entrepreneurs“We need to co-ordinate and help each other when the economy re-opens”
A small thought for my peers is that we need to co-ordinate and help each other when the economy re-opens. We ( Naga entrepreneurs) don’t even control 10% percent of the market share. We are too loud with words but too little with our action. Its high time that we help, encourage and promote each other instead of pushing each other to the edge.