Small Businesses Facing The Worst

The coronavirus outbreak, which started from China has infected lives in more than 180 countries. Its spread has left businesses around the world counting the cost. Coronavirus crisis has caused an unprecedented collapse in economic activities over the last few months. Amid the coronavirus pandemic, several countries across the world resorted to locking down to “flatten the curve” of the infection.

According to the World Bank report , the global economic impact could be deeper than any that we have seen since World War II. The global economy will shrink by 5.2% this year.

However, many lockdowns have also contributed in pushing the major economies to the brink.

There are millions of small businesses running across the world at the edge of their profit margin. But now the scenario has drastically changed in recent times due to the pandemic caused by Covid-19. Businesses are tussling with tremendous uncertainty about their future.

There is the possibility of a Startup Depression, wherein new companies don’t enter the job market because of the pandemic. The small businesses including owners and employees are facing immense difficulties. Their immediate choices being to stay open and put to risk the health of their staff. The small businessman is going through a lot of pain and uncertainty due to this corona outbreak.

The pandemic has pushed the global economy into a recession, which means the economy starts shrinking and the growth stops. With the disrupted global supply chains, there are many short term effects but even after the end of the short term effects,the long term economic effects will ripple for years to be followed.

It is imperative that society preserves both lives and livelihoods. To do so, India can consider a concerted set of fiscal, monetary, and structural measures and explore ways to return from the lockdown that reflect its situation and respect that most important of tenets: the sanctity of human life.

The businessman has to act with full consciousness to plan various strategies for the future and be prepared for the worst that is yet to come!

References:

1.https://www.worldbank.org/en/news/press-release/2020/06/08/covid-19-to-plunge-global-economy-into-worst-recession-since-world-war-ii

2.https://www.bloombergquint.com/economy-finance/indias-small-businesses-are-facing-an-existential-crisis-says-crisil

3.https://www.livemint.com/companies/news/small-businesses-under-pressure-to-embrace-tech-survey-11593650566888.html