Since the start of 2020, Coronavirus has invaded most of the countries of the world. The virus, according to many reports, originated in China and had several harsh impacts on the whole world. From its country of origin, it starts spreading everywhere as humans and their accessories are their transport carriers.
In March 2020, there was no country in the world except a few that had been saved from this virus. Its excellent transforming abilities make humans stay at their homes. The whole world had to face the lockdown, in which they were almost locked up in their houses. This led to many critical situations in every country.
The worst effect of the pandemic was the closure of many businesses. Due to this virus, many business opportunities in Sweden and other developed countries vanished. But it also opens the door to some new opportunities as well. The world has grown more digital than ever during the pandemic. As you all know that large businesses are well organized and have proper strategies to come out of every kind of situation.
But this organization and strategy policy might not be so good in small level businesses. The reason is simple: when a business has only 1 to 4 employees, it doesn’t feel the need for some specific strategy to come out of the crisis. This means that, during the COVID-19, small businesses were likely to get more impacted by the pandemic instead of well-organized large-scale businesses.
Following are the impacts of the COVID-19 pandemic on small business outcomes.
Permanent Closure of the Businesses
Coronavirus and the resultant lockdown lead to the permanent closure of many businesses. According to a survey report, during the lockdown, almost 60 percent of the worlds’ businesses remained closed permanently. These businesses mostly are clubs, gyms, tour guides, travel agencies, art, and construction work businesses.
If you only talk about small business outcomes, then 48 percent of the business which is composed of 1 to 4 employees were closed. And if you raise the number of employees to 20 to 30 then 37 percent of businesses were closed.
Partial Closure of Businesses
Some small businesses remained partially closed during the pandemic. It means that these businesses were trying to attract some customers while opening the business for a few hours per week. Similarly decreasing the staff and serving hours also means that it is working partially.
Most of the businesses that remained closed are that of hotels, restaurants, cafes, etc. This partial closure helps the government to control the spreading of the virus and also provides an opportunity for business owners to earn some amount and keep going with their businesses. Hotels were offering only delivery of food instead of sitting and gathering in the hotel to avoid the virus. This also includes partial close businesses.
The severity of the Impacts
The impacts of coronavirus were severe when it comes to small businesses in comparison with large businesses. The reason is simple: large businesses have a group of well-organized employees and have a complete framework to work in every kind of situation. Moreover, the presence of some strategy makers or hiring them can also help large businesses to deal with difficult conditions.
But in the case of small businesses, there is a lack of all these factors and the result will be the closure of business, huge losses, and decline in the productivity of business are some common impacts. Small businesses can avail different opportunities to come out of these conditions. Using payroll software and lifelines provided by the government can help them out. Copying the strategies of some successful businessmen can also be helpful in this regard.
Takeaway
Coronavirus came in the form of a natural disaster and almost disrupted everything on our planet. But life is the name of finding solutions, the same has also been done in the current case. There are many possible solutions that can prevent your business from heavy losses and impacts of COVID-19.For example, to start afresh, you can travel to another county and start your business there. Look for countries that offer easy immigration. For example, you can get to know about immigration laws in Sweden and try settling there. The choices are abundant if you’re motivated enough.