As Coronavirus spreads around the globe and forces millions inside homes in a lockdown situation, small businesses are facing the brunt as they are unable to run their businesses. They are facing early impacts like supply-chain problems and massive loss of sales. Small businesses, including the owners and employees, are facing difficult choices: to remain open at this grave time and take risks with the staff and customer's health or close without any support.
The small businesses already operate on a thin profit margin, and new mini enterprises aren’t even profitable yet. The present time is hazardous for them, and the choice to is a difficult one. Though the current effects of coronavirus on small businesses may be limited for some time, however, they are significant as they are forced to shut down businesses due to a lack of supply of goods and services.
According to a new study by the National Federation of Independent Business, around 74% of small businesses reported in a Business Magazine, of not yet being affected by the Coronavirus pandemic, 23% state being negatively affected. Of the amount that hasn't been affected, almost half of them anticipate the outbreak to change their business if Coronavirus spreads to or more broadly within their immediate area in the coming three months. Small companies also recorded slower sales and supply-chain disruptions, along with the absence of employees due to the “heightened concern and precautions for the virus.’
The Coronavirus pandemic will underline the importance of health benefits by businesses.wth leading organizations providing health benefits to the employees, the small companies too will need to offer to its employees. The role of health benefits would be crucial for workers who return to work once the shutters are up. They would certainly look forward to it.
Small businesses with a distributed supply chain would be the worst hit. For example, if a small business gets products from a bigger supplier, then there’s a fair chance that the supplies come from across the globe or even China. China has stopped production to prevent the spread of Coronavirus, and the economic effects would fall on businesses across the world. Similarly, new disruptions to the supply chain can also occur. For example, the transport workers who travel from one place to another could be severely affected by the virus. Also, there would be a shortage of workers in warehouses and distribution centers across the globe, which could slow down the travel time and supply chain by days or even months.
Businesses like bars, restaurants, event venues, and stores that look out for considerable gatherings to do business and earn profits will be devastated. We can see the negative impact of coronavirus on small business right before our eyes, as groups on any form and number are banned. People are concerned about their future, their jobs, mortgage payments, and the uncertainty looming ahead. Small businesses that might be planning to conduct any project for their audience is down the drain, with everything at a halt.
Everyone is affected, small appliance stores, builders, contractors franchises, you name it! All small businesses of any kind are severely affected, and a considerable impact is left on their earnings.