As per a report in Financial Express, 10,655 MSMEs have shut down in the last 10 months alone. This is also the highest number of MSME closures in the last 3 years! Covid-19 pandemic wrecked the business landscape, but the government has made multiple efforts to keep Indian MSMEs going. Failure of large numbers of MSMEs despite efforts by the Government does not augur well for the economy.

While MSMEs are subject to the similar risks as large companies, most of them do not have the financial means and management bandwidth required to mitigate and manage these risks. This makes staying afloat a big challenge in a tough business environment. Often a single operational mistake or default by one large customer can cause the business to fold up. 

MSMEs need robust risk management practices to navigate the minefield that is the business landscape today. Herein lies an opportunity for some entrepreneur to set up risk management advisory services to MSMEs!