Micro enterprises form an integral part of the fabric of livelihoods in urban areas of India, particularly in Tier-2 and Tier-3 cities where income-generating activities are scarce for most low-income households. Hence, unexpected and long-drawn crises such as COVID-19 can have debilitating effects on this segment, as they were forced to suspend their work for an undetermined period. This has wider ramifications for the country’s growth and development, given the impact on employment and poverty. Emerging evidence from across the globe has documented the impact of the pandemic on these enterprises.

This report presents findings from a research study conducted by LEAD and GAME, to understand the impact of the COVID-19 pandemic and lockdowns on microbusinesses and provides high-quality and timely data to help inform industry and policy interventions.

The study draws on the data gathered through five rounds of a systematic survey conducted between May 2020 and July 2021, and the Round 1 sample consisted of 1461 microbusinesses. The report seeks to understand the impact of the COVID-19 crisis on microbusinesses in India across a range of dimensions and examines existing coping strategies adopted by enterprises and other external support mechanisms available to tide over the crisis.