The Major Dip
Months after the first wave of the covid 19 which led to a major health crisis leading to the death of over 3 million people worldwide as well as economic shock, the second wave s on its way, although the Vaccine for this Disease has been found. we want to analyze the Impact of coronavirus disease 2019 on small business landscapes.
while doing this we would be focusing on three questions; 1. How did small Businesses adjust to the economic disruption resulting from covid 19?
2. How long was the pandemic expected to last and how did expectations affect business decisions?
3. How can alternative Policy proposals Impact Business and employment resilience?.
Answer to Question One:
With the onset of the Pandemic, there was massive dislocation of small businesses just several weeks after its onset and prior to the availability of government aid through the coronavirus aids and relief Act. with this dislocation, 43% of businesses were temporarily closed due to Covid 19 and active employment was cut by 39% in January.
Answer to Question Two:
For a Pandemic that was not expected to last longer than it did, its deleterious and damaging effects were increased as a result of lasting longer than usual. Most businesses expected to be closed for the least one month and although it was sudden, they planned toward a month crisis management plan. although the Pandemic turned out to become a long-term crisis and resulted in greater damages.
Alternative policies? these policies have helped revive many dying SME’s some of these policies we may mention later on and point some other businesses in that direction. But let’s quickly look at the New Normal after the coronavirus disease 2019 and the New look of African businesses.
Four main characteristics of the ‘new normal’
The New Normal as we term it is in brief ” the New look” of businesses after the global pandemic that led to the shut down of over 43% of businesses. what additional features did we learn? what more did we include in the features of running a business. here are the four main characteristics we highlighted.
Countries learned an important lesson in the early days of the pandemic as they rushed to
strengthen their small enterprises. It became clear that fostering business resilience in good times
would help firms ride out crises, reduce the likelihood of bankruptcy and improve the state of
Diversifying, connecting with business support organizations and building financial buffers can
help contribute to increased SME resilience. For small businesses that are active in international
supply chains, the resilience of their relationship with buyers and suppliers will also matter greatly.
During lockdowns, whole parts of the world’s economies shifted onto digital platforms. Teleworking, remote learning, teleconferencing, online health services, e-commerce, and digital payments really made
the world go round in many regions in the first half of 2020.
In the months and years to come, digital facilities will no longer be optional. Consumers, clients,
business partners, and workers will come to expect them as a matter of course. Yet the move
towards digital technologies must be accompanied by technical assistance, skill-building, and
infrastructure support to ensure that it is inclusionary and equitable.
As is often the case with crises, COVID-19 has put the spotlight on those who are economically
disadvantaged, such as informal sector workers, migrants, and people in microenterprises.
Inclusiveness globalization was already a concern before the pandemic. There is now a unique
opportunity to rebuild the international order together, in a way that leaves no one behind. It will be
crucial to ensure that the recovery phase lifts all the boats to maintain popular support for open
Climate change was ranked as the top global business risk in a 2019 survey of insurance industry
experts. The high perceived likelihood and the severe impact of climate-related risks have ranked
the highest in the World Economic Forum’s Global Risks Report.
There is no reason to believe that climate risks will abate once the health crisis ends. Sustainability
will therefore continue to be important in the new global economy. Retrofitting for both COVID-19
sanitary requirements and environmental friendliness may be a wise move.