Apart from its impact on public health, coronavirus disease 2019 (COVID-19) has caused a major economic shock. Based on different reports, it is the most horrible global crisis since WW II. According to Fairlie, the number of working business owners in USA decreased from 15.0 million in February 2020 to 11.7 million in April 2020 because of COVID-19 mandates and health- and economic-driven demand shifts. The loss of 3.3 million active business owners (or 22%) was the largest drop on record. When conditioning on working roughly 2 days per week or 4 days a week, the losses are even larger (28% and 31 percent, respectively). Total hours worked by all business owners dropped by 29%. Although incorporated businesses are more growth-oriented and stable, they experienced a drop of 20% from February to April 2020. The findings indicate that there was a partial rebound from April 2020 numbers in May and an additional rebound in June. The number of active business owners bounced back by 7 percentage points resulting in a 15% drop in business activity from February to May 2020, and an additional 5 percentage points rebound in June resulting in an 8% drop in business activity from February to June 2020.
The COVID-19 pandemic outbreak has forced many businesses to close, leading to an unprecedented disruption of commerce in most industry sectors. Retailers and brands face many short-term challenges, such as those related to health and safety, the supply chain, the workforce, cash flow, consumer demand, sales, and marketing. However, successfully navigating these challenges will not guarantee a promising future, or any future at all. This is because once we get through this pandemic, we will emerge in a very different world compared to the one before the outbreak. Many markets, especially in the fields of tourism and hospitality, no longer exist. All organizational functions are intended to prioritize and optimize spending or postpone tasks that will not bring value in the current environment. Companies, especially start-ups, have implemented an indefinite hiring freeze. At the same time, online communication, online entertainment, and online shopping are seeing unprecedented growth.
The COVID-19 outbreak caused bankruptcy for many well-known brands in many industries as consumers stayed at home and economies were shut down (Tucker, 2020). In the US, famous companies such as Sears, JCPenney, Neiman Marcus, Hertz, and J. Crew are under enormous financial pressure. The travel industry was deeply affected; 80% of hotel rooms were empty (Asmelash & Cooper, 2020), airlines cut their workforce by 90%, and tourism destinations are likely to see no profits in 2020. Furthermore, expos, conferences, sporting events, and other large gatherings as well as cultural establishments such as galleries and museums have been abruptly called off. Consulting in general and personal services, like hairdressers, gyms, and taxis, have also come to a standstill due to lockdowns. Finally, important industries like the car, truck, and electronics industries were closed causing a huge downfall to the economies.
However many business owners showed their entrepreneurship skills and prospered even during these crucial times, for example, One of the biggest trends to emerge during the COVID-19 pandemic was small businesses going online and creating different opportunities to solve many challenges. Indeed, for many small businesses, the internet remains a lifeline, helping them to stay afloat during the pandemic.
According to Facebook’s report, in the 30 days prior to the survey fielding, 23% of businesses reported using digital ordering tools, 16% service delivery tools, and 37% digital payment tools, like OlaBooks. 36% of operational personal businesses that use online tools report that they are conducting all their sales online. However, we have also seen a lot of small businesses find creative ways to succeed during COVID-19, from expanding into new markets to finding new ways to deliver their products and services. At the same time, a number of large technology companies such as Facebook and Google are creating new ways for small businesses to connect with their customers.
“You still have people who are entrepreneurs by choice who actually saw opportunity in the pandemic and seized it,” Bradley. “And I think even when we're talking about those individuals who went from a prior employment to unemployment to owning their own business, this was probably a great unlocking event.”
Today, technology enables small businesses to compete with the more established brands and flourish during periods of slow growth. Advanced technologies such as OlaBooks, will facilitate communication with employees working remotely and provide new ways to engage with customers. Businesses that are keen on growing should understand the importance of digital transformation and move towards automation. With the necessary small business help, technology will contribute to increased efficiency and help you save time and money.
.jpg.jpeg)
