The Impact Of Corona Virus On Small Business

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  • 18 Mar 2020
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    The world has fallen prey to yet another epidemic disease that has left everyone in a stressful situation. From shutting down malls, movie theatres to avoiding outside food, a lot has changed in the past few days. The impact of coronavirus on small businesses is huge and it has severely impacted the economy of so many countries worldwide. 

     

    What is an Epidemic?

     

    epidemic

     

    When there is a sudden increase in the number of people affected by a specific disease, it’s called an epidemic. Epidemic and pandemic are almost the same, when the infection spreads over several countries affecting a large group of people, it’s termed as a pandemic. 

     

    What type of epidemic is Corona (Covid – 19)?

     

    corona epidemic

     

    Coronavirus is an epidemic disease that is caused due to a large family of viruses. It is a respiratory illness that has started in the month of December 19 in China. Hence it is referred to as COVID – 19.

     

    During the month of December 2019, several cases of acute respiratory syndrome were reported in Wuhan City, Hubei Province, China. This virus is responsible for causing severe diseases like Severe Acute Respiratory Syndrome (SARS-Cov) and Middle East Respiratory Syndrome (MERS-Cov).

     

    Coronavirus is zoonotic in nature as they are transmitted between people and animals. According to research, SARS-CoV was transmitted to humans from civet cats, whereas MERS-CoV is transmitted from camels. 

     

    Some of the common symptoms of Covid-19 that shouldn’t be avoided are cough, fever, difficulties in breathing, and shortness of breath. 

     

    This disease has affected not only the health of individuals  but also the growth of big and small businesses. 

     

    Read :- How To Grow Your Small Business In Spite Of Economic Slowdown

     

    Effects Of Corona Virus On Small Business

     

    economic slowdown

     

    The outbreak of CoronaVirus has disrupted many small businesses. It has impacted the economy and workforce in activities ranging from functioning to staffing to distribution.

     

    About 23% of the business across the world is said to be facing the side effects of CoronaVirus. 

     

    Most of the businesses have seen a massive drop in their sales. Not just that, even the supply-chain of many companies have been affected.

     

    Here are a few significant effects of CoronaVirus on small businesses:

     

    Shortage of Staffs

     

    less employess

     

    The rapid spread of Covid-19 is the reason why there is a lack of staff at the workplace. Health is a top priority for every single one of us, and it’s an individual’s responsibility to go to any extent to prevent themselves from such diseases. 

     

    While some businesses run online, there are a few which require people for proper functioning. However, working for an organization at the stake of their health is not something that people should be doing. 

     

    With the number of employees working for an organization decreasing at a rapid rate, the coronavirus impact on the global economy is evident.

     

    Read :- Why Organizational And Time Management Skills Are Important For Small Business Owners

     

    Loss of Sales:

     

    low sales

     

    Many companies have lost sales owing to the CoronaVirus. It’s one of the worst world epidemics that has put not only the health of people at risk but also the global economy. 

     

    A few companies have complained about how they are running a slow business—the reason being the lockdown of people at their homes to take preventive measures. 

     

    Disturbed Supply Chain

     

    disturbed supply chain

     

    Small businesses, mainly in the retail sector, are badly impacted due to CoronaVirus. It’s next to impossible to produce and distribute products without a proper network of people. And this epidemic disease has left many gaps in between the supply chain, which is making it difficult to continue with the process. 

     

    Read :- Competitive Analysis For Your Small And Home-Based Business

     

    Cancellation of Events

     

    cancelation of events

     

    The only way to prevent Corona Virus from spreading is to avoid socializing. This has led to the cancellation of all the big and small events. 

     

    Big events like IPL, Olympics, Award Ceremonies, and many others have also been put on hold for the time being. The distributors, producers, and sponsors are the worst affected due to this. 

     

    Travelling Restrictions

     

    travelling cancellation

     

    Since CoronaVirus is widely spread in foreign countries like China, Italy, Iran, Spain, South Korea, Germany, and Japan, among others. People are restricted from traveling from and to these countries. The cases of CoronaVirus in India have mostly occurred due to people coming from other countries. As a preventive measure, most of the international flights have been canceled. 

     

    Read :- How To Cope With Challenges Faced By Small Businesses And Their Solutions In 2020

     

    Manufacturing Operations

     

    low manufacturing

    The manufacturing of goods has decreased due to limited consumer demand  because of which there’s a delay in receiving orders. The operations are halted because of the delays in moving goods from one place to another. Wuhan is one of the major manufacturing hubs which is fighting the disease. 

     

    Impact on Tech Sector

     

    tech sector

     

    Coronavirus impact on markets also includes the tech sector. Many technology companies have shut down their offices as the major manufacturing suppliers like China and Southeast Asia are badly affected. Major work conferences are canceled, and business meetings have been stalled. 

     

    Conclusion

     

    As Murphy says, anything that can go wrong will go wrong, and it’s during this time when everything is going wrong that you need to shower kindness to fellow humans. Make sure to stay indoors and take preventive measures to avoid the spreading of the disease. 

     

    Read :- 7 Mistakes That A Small Business Should Avoid

    Posted in Business