Get to know how corona virus affected your startup business?

August 17 2020

Well, not just small businesses, all most all the well-established businesses are going through a challenging situation due to the on-going coronavirus outbreak. It has severely affected various countries’ economic conditions. In fact, it has predicted that it will take many people’s lives in a strange way over the new few months or can even years. Surely, things will not be the same.

All most all the startup businesses located in both affected and non-affected countries are now facing a lot of difficulties due to the global shutdown caused by the COVID-19. They can’t even rake the risks of keeping the business unit open with fewer staff. Small companies are now facing issues like loss of employees, project cancellation, zero production, and more. The major problem is profit. The sales level has gone down dramatically fora few days. Most of them are functioning on a very thin profit margin.

If we talk about the U.S. market, around 50 percent of small business owners of the U.S. said that if such a condition persists for more time, their business won’t be able to run for more than 3 to 4 months. Let’s have a look at a recently conducted study report.

The U.S.’ small business owners respond to the ongoing coronavirus outbreak

The recently conducted study obtained a response from 10,000 startup business owners. The result was:

Around 51 percent of them say the business will not be able to operate for more than 3 months.
The outbreak has already affected around 96 percent of small businesses.
75 percent of them reported fewer sales.
More than 13 percent of them are confident in their business contingency plans.
Around 53 percent of startup business employees don’t have a telecommute facility.

About India’s small business sector

Recently, AIMO- All India Manufacturer’s Organization conducted a study to know the current condition of the small business in the country. The report shows if the condition lasts more than one month, around 43 percent of MSMEs may shut down their company. India has more than 75 million MSMEs, and most of them are now suffering losses in their business.

The reason is the production and sales have gone down due to the unavailability of the required resources.Some other issues include pending employee salary, pending bills, no income, no transportation of the products, and more. The large companies may survive the condition, but for startup businesses, the situation is getting worsen every day.

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