Many small businesses are struggling through the lock down. More than a third of the global population is in some kind of lock down. This has greatly dampened demand for products and services. Many small businesses have simply shut their doors in this period. Almost one in ten jobs have been lost globally.
Some industries are more affected than others. The travel, hotel and airline industries are seriously affected. Because of limited travel the oil industry is struggling and the price of oil on the international markets has collapsed. The online businesses are doing quite well. Netflix, Amazon, Facebook, Zoom, etc. have seen significant increase in subscription as more people are confined indoors.
Things are going to change dramatically for small businesses if they are to survive. Greater adoption of the internet in the way business is done is going to become the norm. Businesses are going to have to buffer cash to overcome any future uncertainties. We are unlikely to see a retun to full employment soon. Many small businesses are going to rationalise their staff compliment and retain only critical staff.
Businesses may not be willing to invest for the longterm because of the current uncertainties. Governments will have to step in to encourage business spending throuh favourable policies.
There is likely to be a shift of production from China to other countries. This crisis has taught many businesses that it is not very wise to depend entirely on one source for your supplies.
Small businesses are going to be more cautious with credit. This crisis has exposed many firms which are over leveraged and now need to be bailed out.
Overall the game has changed. Small business will need to innovate and change the way it does business.
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