Insights from Khatabook’s 2022 Mid-Year MSME Business Sentiment Survey

Jul 12, 2022

We are pleased to share Khatabook’s 2022 Mid-Year (January 2022- June 2022) MSME Business Sentiment Survey insights.  The survey studies data of 7295 MSMEs across every state and various business categories in the country. As per this 6-monthly MSME business sentiment survey series by the startup, the business growth optimism sentiment has been steadily improving  over one year.  

Here are some of the Key insights: 

  • 71% are optimistic about growth in the next two quarters of 2022 and only 5% expect a dip in this time frame.
  • 58% of MSME businesses mentioned improvement in business from  January 2022 to June 2022 
  • 14% of businesses saw a dip in business in first two quarters of 2022, as compared to 23% in the last two quarters of 2021
  • The first six months of 2022 have been growth positive for MSMEs across all categories and regions. MSME ecosystems in all the states are growth positive, with Telangana, Rajasthan, Maharashtra, and Gujarat being the top growth positive states. 
  • Sentiment improved across retailers, wholesalers, distributors, and manufacturers. The most improvement was seen among wholesalers and distributors, while manufacturers saw the least improvement in sentiment index scores.
  • All the categories have displayed growth, including those in negative growth in 2021, like Industrial services, stationery, and Home furnishing. Pharma, Salons, and Restaurants/Eatery are the top growth categories in the first two quarters of 2022. 
  • About 66% of businesses mentioned they had no significant business-related issues. In contrast, others said weak demand, credit availability and liquidity, and Payment collection were some of the major concerns.


Informational summary of Khatabook’s Impact analysis for 2021, black and white picture of man sitting in grocery shop using a smartphone to check khatabook account. Other data is India’s GDP for FY20-21, MSMEs in India in Cr, 1.5 crore users for Khatabook, 23.4 of Indian MSMEs represented by Khatabook, 4.04% of Indian GDP recorded in Khatabook

At Khatabook, we are committed to understanding our merchant users better to provide them with the best digital solutions to make their businesses more efficient and profitable. Business Sentiment Survey is an effort in that direction. We plan to conduct this survey every 6 months to identify the level of confidence for business growth and understand the key challenges for the MSME ecosystem in the country. These findings help us devise a strategy to better equip our users with technological capabilities to ensure their growth is not stinted.