As chaotic as it could get, Ever since the onset of the COVID19 pandemic, the world economy has been sinking into the abyss. The impact of the novel coronavirus contagion, coupled with the imposition of lockdown, has made the existence of small businesses more vulnerable than ever. The recent financial crunch experienced by the local business owners has threatened their very survival in the market. Indeed we have come across news reporting that expressed the stature of distinct economic challenges in operating the business that comes under the local/small business banner.
The worst affected Business Sectors:
While almost the whole local business industry market is highly unstable, a few sectors of the same industry are facing an apocalyptic crisis.
With a motive to spread awareness about the worst affected industries of the small/Local business units, VOLB has delved into a recent survey reports of the SMB group. The Small and medium business group survey on the local business market downfall due to COVID19 shows that three sectors incurred irreparable damages and are the worst hit. They are Personal service, retail, and the hospitality sector.
Here is a look at the businesses that fall under the three worst-hit sector of the local/small business hub:
Personal service: This industry has suffered a high negative impact than any other business sector. From hair salons and spas, dry cleaning to home improvement and repair contractors are severely affected. With strident restrictions to curb the spread of the COVID19, these industries were mostly non-operational as they are not allowed to open for business. It stands at the top of the list among the three sectors.
- Retail stores: Although people are thronging into stores for the purchase of groceries and essentials, there has been a slump in the number of people visiting the local retail stores. People prefer supermarkets and large stores to ensure the availability of supplies. Whereas, the small retailers are left struggling with a severe cash crunch and cash flow. They can’t rely on in store traffic and have to find altering ways through online platforms to sell their products and boost their revenue.
- Hospitality: The hospitality sector, which mainly relies on lodging, restaurants, casinos, and other tourism-related businesses, came to a halt with the imposition of lockdown, shelter-at-home, and travel ban across the world by several countries. These industries are also one of the huge contributors to economic development. However, the very sector has lost most of its significant revenue during the pandemic and incurred losses.
The COVID19’s influence on these sectors remains catastrophic. While the recovery seems so far, the local/small business entrepreneurs are learning to find ways to appease the impairment.
“When the going gets tough, the tough get going.”
Just as the famous American saying goes, local business owners are looking forward to potential ways and innovative ideas to equip themselves to steer clear through their gloomy days. As the walk to recovery and reopening may seem much harder than starting from scratch, it is always imperative to stay hopeful and look out for the better days to come.