In the U.S., the problem of the pandemic has been far-reaching. People have been affected in different ways; it could be that their livelihood has been diminished, or they find themselves without work, or they could even be suffering from COVID-19 either asymptomatically or with various health problems.
Businesses have suffered from this pandemic, too. While people tend to show it more, small to modest-sized businesses have felt the crunch that quarantine closures have made on the economy. Some of these businesses have felt this impact from the closures or the economic slowdown. Like those involved with an online marketing business start-up, some may have found ways to thrive despite the situation.
There are people interested in knowing how to establish a business despite the current situation. To know what to expect when establishing small entrepreneurships, here are a few problems that happened to small businesses at the onset of the pandemic.
Those Involved in Sales Have Felt the Crunch
Out of all the industries impacted by the pandemic, a reported decrease in sales has been obvious to most people. Some people lost their jobs seeking respite on their rent and other expenses like credit card bills. That also means a diminished return for the landlords and credit card companies.
Businesses involved in sales have allegedly also asked for extensions. Some managed to adjust online, but the situation doesn’t look good for most. Geographical differences also play a part in the success or lack thereof of these companies.
The Future Looks Bleak for Some
Some businesses have reported that they don’t see anything good happening in the future. Uncertainty in the economy hangs heavy for these people due to the pandemic, and not all businesses can shift to other avenues – for instance, transactions made online.
Again, most of these businesses reported a lack of revenue due to the ongoing pandemic. Others are also involved in sales. Some of them reported problems would be seen in the short-term rather than in the long-term. While some companies may find solutions for these, others may not be able to at all.
The Effects Were Felt More in These Industries
Out of all the businesses reporting significant losses that may lead to these companies closing, other industries said the pandemic weighed heavily on them. Those businesses had something to do with services that may be essential, while others relied on people showing up in certain areas.
The industries of food services and arts and entertainment and transportation were inundated with the most problems. Food services may see a renaissance of sorts if they manage to re-adjust their services to go online. The same might be said with arts and entertainment as they shift into a more social-distancing-friendly platform. Transportation may not be so lucky since people are sheltering in place.
Some People Find their Livelihoods Stripped Off
It isn’t only the small companies that are suffering from the pandemic. Some people count on these companies to provide for their everyday expenses. With some people being laid off, it paints a bleak picture of where they will get their food for the next month and beyond.
Some businesses have shut-down because they don’t have a choice – they were deemed non-essential services that would only aid in spreading the disease. Some saw a drop in demand for their services. Whatever the reason is, these businesses have no choice but to close shop, and their employees are all the worse for it.
Different Predictions Make It Difficult
Predicting what the virus will do further and where it may strike next is not an exact science. Studies are being done about it, as well as how it may evolve in the future. The vaccines may have arrived, but even these may not effectively provide a solution to the problem.
With studies providing inconclusive results, businesses and people might find it hard to return to at least an acceptable normal. For some, this kind of situation isn’t acceptable. Businesses rely on this result to open again, while people are searching for open businesses to work for.
The pandemic has far-reaching consequences felt not only by industry but by people, as well. For those planning to buck the economy’s condition and the uncertainty of the times by opening a business, learn from these findings. It may help to expect some things that might happen yet again.