With the lockdown effect and COVID 19 taking a toll on lives, businesses are navigating the financial challenges while addressing the needs of people and consumers. Further, Surveys have been conducted with more than 5,800 small businesses to know what are the actual problems faced by the businesses.
The mass layouts and closures did surely occur in the first few weeks of lockdown. Secondly, the risk has been negatively associated with the length of the risk. Many small businesses have become frantically fragile and they have lost a lot of money. The medium businesses have seen $10,000 expenses only within 2 weeks of business.
COVID 19 has caused enough damage to money and shocked society. Likewise, three questions arise when talking about small businesses. Firstly, how did the small businesses have been able to adapt to the disruptions of COVID 19? Secondly, how long the businesses have expected the crisis to stay, and how did the decisions affect the business?
The surveys during lockdown were conducted between 28th March 2020 to 4th April 2020. Similarly, the surveys have allowed the competitors to understand the mental state of the business owners during critical situations.
Impact of COVID 19 on the business world
· Dealing with changing customer habits
The global pandemic has changed the experience of customers as a whole. Likewise, digitalization has come into the picture and accelerate the pivot to digital commerce. The situations are changing the needs and demands of the consumers. They are buying essential stuff until the situation comes under control.
· Impact of COVID 19 on the workforce
Organizations around the world are experiencing workforce disruption and companies are continuing virtually. Besides, as long as the workforce is working together for the short- and long-term goals, everything will be in hand. The organizations need fit plans for purposes to evolve in the era of global health.
· Impact on finance
The leaders have to balance risk and liquidity seeing the growth of the companies. Further, the current situation is leading the leaders to shift to C suite action including the near-term actions for taking strategic decisions.
Immediate actions need to be taken for short-term liquidity challenges. Liquidity has become the matter for survival.
· Impact of COVID 19 on the operations
There have been fundamental changes to supply chains, consumer behavior, and knocking off the companies to balance. Likewise, it is crucial to becoming an intelligent enterprise from shifting the top-down decision making to enable the cloud to make the work faster.
It is necessary to create a porous organization with modules to help play big. The intelligent Enterprise helps in dynamic management and continual adaptation. It is mainly built for legacy and agility.
Small businesses are likely to fail without appropriate financial assistance. Further, reports have proven that 38% of businesses are likely to open at the end of 2020 or early hours of 2021. Many of the businesses will need loans to survive better.