The episode of Coronavirus began in 2020 and these unprecedented circumstances led to unexpected impacts on businesses and thereby the economy of every country.
According to a survey, 82% of small businesses experienced drastic consequences of the pandemic. As lockdowns and travel restrictions eased in 2021, the businesses were starting to recover. Let’s look into the darker as well as brighter sides of how covid affected small businesses.
The Darker Side:
The employment situation worsened due to the outbreak of Coronavirus. There were numerous layoffs as most small businesses were trying hard to meet their ends. The pandemic pulled down several companies, that we’re planning to expand, to think about their survival. As a result, people employed in such firms went through job insecurity.
Most small businesses which merely survived the period had to scale down. Covid-related stress took a toll on small businesses.
While small businesses were struggling, their employees were temporarily unemployed for an uncertain period. Moreover, these shutdowns also impacted the mental health of employees as well as small business owners.
Travel Business Doomed
As the movement was restricted along with strict government restrictions on travel, small business owners in the travel & leisure industry were doomed. The uncertainty due to Covid made the travel business owners helpless.
Most small business owners in the travel industry had to bear the expense of their employees and other operational costs without any assurance whether they will get the chance to get back to their normal business.
The Brighter Side:
Acceleration of Digital Transformation
Most industries were moving towards digitization. However, Covid accelerated the pace of digital transformation in every industry. Most companies began to digitize their business operations in order to survive through the pandemic.
Most businesses were investing in developing Company Websites, digital marketing, and cloud services. This movement gave a wide array of opportunities to digital space workers and IT companies.
More Online Businesses
As unemployment rose during this phase, the world saw new entrepreneurs starting their ventures. Small businesses, especially online businesses, began to rise as more and more people were looking for business opportunities. Numerous Ecommerce was set up, especially for grocery and food deliveries.
People were exploring different aspects of earning money during this period. While some people were looking for alternatives to replace their income source, some were monetizing their hobbies. Covid indeed led to rising of new small businesses if we look into the situation from this perspective.
The Bottom Line
Covid has affected everyone in the world. The year 2020 had been a disturbing year that exhibited downs that no one expected. Small businesses experienced the worst business landscape during this phase. Covid led to unprecedented circumstances that adversely affected small businesses. However, there was certainly a silver lining amidst all this bad news.