To say that the world has been shaken by the novel coronavirus (COVID-19) is an understatement. It has been declared a global pandemic by the World Health Organization. With most countries shutting down their borders and citizens being advised to practice social distancing, every aspect of the world economy is being affected. Small businesses are feeling the pain and uncertainty posed by the pandemic even more.
According to the findings of a survey of national small business association members, three in four small business owners are concerned about the economic impact of COVID-19. Many are being forced to take drastic measures, even as they are uncertain of their futures.
Small Businesses Are Experiencing Supply-Chain Squeezes
One of the first impacts of the pandemic on most small businesses is supply-chain disruption. With borders being closed, it is expected that shipment delays and loss of orders will continue to hurt businesses. While this affects businesses that get their supplies from overseas the most, it is also hurting businesses that get their supplies from companies at home, experiencing difficulties too.
Businesses Are Experiencing Lost Sales
As fewer people are working and engaging in the activities they enjoy, businesses are losing sales. People are cutting down on expenses, too, since the economic future of jobs and businesses are uncertain. The issue of dwindling sales will likely continue after the virus must have been contained until things get back to normal.
Many Have Been Forced To Close
Some businesses have been forced to close as a result of COVID-19. In some instances, slower sales and the advice of health authorities have made some entrepreneurs close shops. In some other instances, government authorities have forced some businesses to close down to curtail the spread of the virus. Closing for two weeks or more means a lot of potential sales will be lost, and this can be devastating for most small businesses.
Businesses Are Limiting Their Budgets
To respond to the economic misfortune the pandemic has brought, most businesses are limiting their budgets to suit the realities on the ground. While some are laying off employees already, others are reconsidering their marketing strategy. Many small businesses are suspending online campaigns or adjusting their marketing strategy in a bid to reduce costs and stay financially stable for the foreseeable future.
There you have it! Above are some ways through which the coronavirus pandemic is affecting small businesses. It is evident in many places that the Novel Coronavirus (COVID-19) has affected small businesses significantly. Small business owners are expected to adapt to survive the crisis and uncertainty posed by the pandemic. Some banks, Facebook, and few other organizations have pledged support for small businesses. Business owners, however, must do more to save their businesses than to depend on the grants.
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