In the last few months, the catastrophic or we may say pandemic has surrounded the entire world, yes; we are talking about the coronavirus. It’s needless to say that this virus is responsible for thousands of deaths around the world. As much as it has impacted the health of human beings, it has caused drastic yet negative changes for the small business owner.
Import & Export Ban
With the spread of this virus, the borders are being closed putting an indefinite ban on imports and exports. With this ban, the entrepreneurs and small businesses have been impacted at a great rate. In this article, we are sharing all the information on how coronavirus has impacted small businesses.
The coronavirus is being named the black swan of 2020. According to the leading venture capital firm in Silicon Valley, the firms have suggested using each dollar as their last. Many would believe that this quote is a result of coronavirus but in reality, it’s the result of great recessions, but fits the current situation pretty well, right? This coronavirus won’t be as fatal as the great recession but the economies are going to experience some drastic changes.
The economic changes are visible in supply chains, revenues, and the travel while the small businesses are undergoing massive destruction. In addition, the sales have been lost while the supply chain problems are piling up. According to the National Federation of Independent Business, the current situation might have limited effects but the troubles are high-end.
At the moment, 74% of the businesses aren’t being affected by the pandemic but the 23% of them are experiencing negative impacts. However, the remaining 3% businesses are responding with positive impacts. If we look at the sales count, 42% of the businesses are undergoing slow sales while 4% of them have sick employees (showing flue and cold symptoms but that doesn’t mean they are being positively tested for the coronavirus!) On the contrary, 39% of the businesses are undergoing supply-chain disruptions.
However, the businesses are pretty much aware of the situation and they understand the escalation of disruption in sales if the virus keeps on increasing and spreading out. According to the CEO of Olita, they have been serving the beach boutiques, surf shops, grocery shops, resorts, and pharmacies with the organic skincare products. According to them, they had to cancel two trade shows in addition to shipment delays. Also, they have lost the out-of-the-pocket cash as well.
However, to offer helps, the Small Business Administration has come up with guidelines to offer help to small businesses that are undergoing economic changes due to coronavirus. The agency is trying to work with state governors to offer recovery loans with lower interest rates. Approximately $2 million has been set for loans which will be provided to non-profit organizations and small businesses. So, the impacts might be negative but the governments are trying their best to cater to small businesses!