A high percentage of startups 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 percent of startups 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% startups suggested that the business was affected, 33% experienced no impact, 14% saw receivables getting better or improvement in payments and 25% did not have account receivables.”