Post COVID, condition of Muslim entrepreneurs is at greater risk

Unemployment in India is at an unprecedented high and this downward trend has been evident since 2016. Over the last couple of years, particularly during COVID times, this unemployment has hit the small traders and daily wage labour the most. The economic downturn following the lockdowns has, in the meantime, impacted small businesses and retailers particularly hard with consumption reducing across all segments. This has led to great pressure on families involved in small business and with little or no savings in their accounts. Under such circumstances, the focus on entrepreneurship in a post COVID world becomes important, particularly for the Muslim risk taker.

The Sachar Committee had observed that a vast proportion of Muslims are self-employed. The self-employed were higher in urban areas and among women. The Kundu Committee report highlighted that 49% of Muslims in rural areas and 50% in urban areas are self-employed. The problems and challenges for the self employed in uncertain times, with little or no state support, are indeed back breaking. With no access to formal credit mechanisms, these small businesses rely on borrowings from friends and family, who now are starved of cash and unable to help. Local money lenders therefore become the only source of cash and could increase interest rates at will.

In his study, Abrar Ali Saiyad, Professor at the University of Ozyegin in Istanbul has studied the condition of Muslim entrepreneurs in 15 cities across India. The research incorporates entrepreneurs between ages 20 to 65 and covers a vibrant array of industries. The study’s findings reveal that the major hurdles in starting and managing a business came from difficulty in accessing supply of new materials and accessing technology and discrimination from the government and other communities. In managing a business, while economic slowdown and competition are major challenges, the behaviour and infamous reputation of fellow Muslim entrepreneurs also adds as an impediment. Most Muslim entrepreneurs resorted to innovation, improving quality, and building customer satisfaction to survive in these tough times.

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