The Covid 19 pandemic no doubt caught the world by surprise. Who would have ever thought that there would be a time when businesses would cease to run on physical contact basis, that schools would be closed and movements would be stopped, for months? To say that almost no one prepared for this would be an understatement.
Six time Startup Founder and business advisor, Alan Safahi points out that founders face more than usual uncertainties amid Covid 19, but those that overcome them will come out much stronger than entrepreneurs of the prior generations. After all, some of the largest, most successful companies in the world such as Airbnb, Hewlett Packard, Hyatt, Microsoft and Uber, were founded during past U.S. recessions according to Business Insider, which pales in comparison to today’s dire economic times.
Although things are slowly returning to normalcy in some areas (before the next peak hits), the effects of Covid 19 remain boldly written on businesses of all kinds, especially small businesses, both positive and negative. Here are some of the impacts of Covid 19 on small businesses:
Foremost among its impacts is the confirmation of the need for technology in business. The days and months behind closed doors have awakened many small business owners to the reality of technology. Many business owners have learnt that not digitizing their business would continue to make them vulnerable. Many business experts such as Alan Safahi continue to teach entrepreneurs how to improve their businesses through digital marketing.
Many business owners have learnt to be more versatile and resourceful during their stay at home. Many have learnt to diversify their businesses and to come up with more creative ways of getting their goods and services across to customers. More than anything, many business owners have learnt more effective ways of getting across to their customers. For some, the usual laid-back way of doing business has given way to more proactive strategies and ideas.
On the other hand, many small business owners have felt the heat of the situation the most. In a survey carried out in Uganda, three quarter of all the small businesses in this study had laid off employees. Yelp data shows 60% of business closures due to the coronavirus pandemic are now permanent
As a result of reduced business activities, many small businesses have experienced major losses which have forced them to adopt ways of cutting their losses.
In India, for instance, according to an Entrepreneurship survey, about 83% of small businesses experienced reduced revenue and almost half of them are faced with the possibility of shutting down. The list could go on. Many businesses suffered huge losses from which they are still trying to recover.
Another huge disadvantage caused by the pandemic is a significant reduction in investment activities. It is obvious to the world that many businesses are in a stand still. It would therefore be a huge risk to invest in businesses during the pandemic, especially small businesses and startups. With a sizable decline in investors and investments, small businesses are faced with even more struggles than they would have expected.
In all of these, entrepreneurs have learnt to lean on more technological methods in interacting with their customers. This is a welcome development for entrepreneurs as most people now make their findings on smartphones, as noted by Alan Safahi.
Entrepreneurs have therefore learnt that the future is digital and any business that would survive in that future must learn to go digital as well. The erstwhile methods of doing business have been revealed for what they are, heavily flawed, and the nature of work is now defined by the new normal, post Covid 19.
Originally Posted: https://safahi.com/how-covid-19-is-changing-nature-of-work-impact-on-small-business-46149b671051
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