Business Challenges Due to COVID – 19

With its origin in China, the COVID-19 virus has taken the globe by storm. The citizens are bound by the boundaries of their home, while a mask accompanies any movement for essentials on the mouth. On the other hand, the entire world has entered into a race to find the cure and end the pandemic that has affected millions of lives worldwide.

However, did you know what is the worst affected? The Economy.

Even the most dynamic economies have now been crippled. Despite the size, businesses have to shut down their businesses temporarily, thus, affecting billions of lives on the payroll. On the other hand, the concept of work from home gained momentum, and companies have adapted the mantra to keep the wheels running.

Here is a detailed analysis of the challenges businesses face due to COVID-19.

Lack of Capital: The very first challenge most businesses faced is the lack of capital. The government restricted the sale of non-essentials, and hence a lot many businesses had to pay the employees from their pockets. In a report by some of the leading news agencies surveyed, 3 out of 5 startups in India had enough capital to run for three months.

Pivoting in Time of Crisis: The catch crunch made the companies think outside the box, and companies had to innovate to survive. Several companies, including MSMEs (Small and Medium-Sized Businesses), switched to delivery of essentials and thus survived in the intense months of the crisis.

COVID-19 and Lockdowns: The economy faced a major halt when the government announced a major halt in the economic activities all across the nations. The act was instrumental in the spread of the Coronavirus all across the country. This rendered the lower classes without any income source and forced companies to show pink slip to thousands of employees.

No matter in which corner of the globe you reside, the economic tremors succeeded in every corner and hence could not be ignored. The governments had to plan several relief packages to help the needy economy and resume the normal life despite the pandemic to save the economy.