3 Ways The COVID-19 Outbreak Has Affected Local Businesses

As the novel coronavirus continues to spread, local businesses are losing their customers, thus affecting nearly 44% of the US economy. Let’s check out the three major ways COVID-19 has affected economic the local and small businesses.

1. Forced Closures

According to a recent survey, COVID-19 could lead to the closure of 15,000 permanent local stores in 2020.

Other Impacts:

• Millions of people are taking refuge from the outbreak by staying at home, thereby avoiding shopping trips.
• According to the Economic Policy Institute, the COVID-19 outbreak could wipe out three million jobs from the US economy this summer.
• At least 1500 local business owners are most likely to halt their business operations permanently within three months.

What Can Be Done?

• Local flower shops, bookstores, or toy shops can start curbside pickup and delivery system since their usual storefront isn’t available now.
• Gift cards can be offered for later use at restaurants, hair salons, childcare providers, etc.
• Local restaurants can also share their delivery menus on social media pages.

2. Jobless Hourly Employees

COVID-19 outbreak has forced the hourly employees of local organizations to stay at home or quit due to forced closures.

Other Impacts:

• The number of employees going to work dropped by 18% on March 16th before the closures took effect.
• After the closures, 3 out of every 10employees did not go to work. The number increased to 6 out of 10 by March 22nd.
• Local business workers in numerous cities started working a quarter or less of the hours that they usually would.

What Can Be Done?

• Low-interest loans can be provided to small local firms to help them pay their workers.
• The Small Business Administration, for instance, has said that it is ready to offer loans of up to $2 million to local firms affected by the COVID-19 outbreak.
• Local firms should pay hourly workers for absenteeism due to cold or flu symptoms.

3. Digital Transformation

The COVID-19 outbreak has forced multiple local firms to shut down, thereby causing most of them to turn online.

Other Impacts:

• As the COVID-19 continues to spread, China’s status as the epicenter of supply chains is causing adverse effects on consumer behavior and local businesses.
• Brick-and-mortar stores are facing harsh realities as governments enforce social distancing and strict quarantine measures.
• The COVID-19 pandemic has turned down the financial markets of local firms throughout the world.

What can be done?

• Local firms can start embracing online business strategies to cater to the demands of their consumers without opening their storefronts.
• They can also communicate with their target audience via social media platforms to preserve the relationship with customers.
• Local businesses can use e-commerce websites to provide essential healthcare and stationery products to their potential clients.

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