The textile entrepreneur’s post on X sparked widespread online conversation about the growing economic uncertainty businesses may face in the coming months due to escalating tensions in West Asia. The post, which raised concerns about rising raw material prices and the possibility of layoffs across industries, quickly gained traction on social media.
Businessman warns next six months could be ‘very painful’
The discussion started after apparel entrepreneur Akshay Jain shared the bleak outlook for businesses. In his now-viral post, Jain warned that the next six months could be “very painful” as commodity prices continue to rise amid the ongoing geopolitical crisis.
He warned that if costs continue to rise at the current rate, several sectors could see large-scale layoffs and even company shutdowns. Jain further described the steep rise in input costs as “absolutely unsustainable”, especially for businesses that already operate on tight profit margins.
Businessmen discuss the problems of rising costs and weak demand
Jain’s comments resonated with several entrepreneurs and professionals, many of whom joined the discussion to share the difficulties they are currently facing.
One user claimed that the economic slowdown could last more than six months, suggesting that SMEs could take almost two years to recover properly. Rising operating costs, labor shortages and stagnant consumer demand have created conditions many young entrepreneurs have never dealt with before, according to the commentator.
Another user said the effects of the crisis are likely to extend beyond businesses, affecting sectors such as agriculture, manufacturing, technology and raw materials. The commentator also expressed concern that India may struggle to cope if the global situation deteriorates further.
Founders say scaling businesses is difficult
Several founders also talked about the challenge of managing rising operating costs while consumers continue to cut back on spending. One entrepreneur noted that although costs and product costs increased by more than 20%, businesses were unable to raise prices commensurately because customers were spending cautiously. The user added that expanding operations in the current climate has become extremely difficult.
A tourism entrepreneur recalls the struggles of the Covid era
An entrepreneur from the tourism industry shared that declining travel activity is already affecting sales. The founder recalled how the company managed to survive during the Covid-19 pandemic by switching to mask production, but said the current situation appears to be even more difficult as the firm now operates a larger factory and supports more employees.
The entrepreneur added that deciding which products to manufacture and sell amid such uncertainty has become a major challenge.
(Disclaimer: This report is based on user generated content from social media. Livemint does not endorse them.)
