Start-Ups See Decline In Business After Demonetisation: Survey
NEW DELHI: A high pct of start-ups are experiencing a slow down in receivables and transaction flow as a result of demonetisation of high-value currency notes, a survey has revealed.
"A higher pct of start-ups and small and medium-sized enterprises (SMEs) experienced a slowdown in funding and expansion plans," according to a survey conducted by the LocalCircles citizen engagement platform.
The survey had a participation of over 30,000 start-ups and entrepreneurs from across the country. Some of the members reported that their customers were paying the bills in the old currency notes.
According to the polls: "28 pct start-ups suggested that the business was affected, 33 pct experienced no impact, 14 pct saw receivables getting better or improvement in payments and 25 pct did not have account receivables."
A question in the poll focused on how understanding of transaction flow had bettered for start-ups and SMEs as many of them use electronic payment transactions.
It was reported that 34 pct of them saw a reduction in customer transaction flow post demonetisation, 21 pct saw no impact, 13 pct saw an increase in the customer transaction flow while 33 pct did not have customer transactions in their business.
It was found that 86 pct of the start-ups and SMEs saw demonetisation to have a positive impact in the long run.