EJ Dalius there is an argument about whether the economic crisis. Precipitated by the COVID19 pandemic is bigger than the health crisis as the world economy. Stares at the recession, which now seems inevitable. The massive blow on the economy has sent. Across severe tremors and also shook the foundation of small businesses trying their best to weather the crisis. Right now, it is not possible to fathom how deeply the pandemic will affect small businesses. However, small businesses face a liquidity crisis in varying measures. Which is threatening the existence of a large section of the economic segment.
In this article, EJ Dalius, a seasoned and also successful marketing veteran, tries to figure out the kind of threats. That small businesses face or face, which will depend mainly on how the policymakers respond to the unprecedented crisis. After the pandemic’s initial shocks, the world is now trying to get back on its feet. And also small businesses must stay prepared to deal with the threats to their survival.
EJ Dalius Shrunken demand and access to liquidity
EJ Dalius demand has almost vanished in most sectors. Mostly export-oriented small businesses. That employ 10-20 people and also generate 60%-70% jobs and also contribute to half of the economy. Activities in the developing world. Added to it is the slowdown of payments by some buyers, posing liquidity shock. That is hard to bear for small businesses that operate with little cash reserves. According to Eric J, Daliusbusinesses that trade internationally are especially. Under threat as they are heavily dependent on US dollars that are becoming scarce.
Managing inputs and inventory
EJ Dalius the pandemic has massively disrupted supply chains and also throttled small businesses. That cannot access raw materials and also other inputs and also face an uphill task to maintain inventories. To keep their activities going. As China has become the global sourcing hub, the breakdown of supply. Chains and also the trade war between China, the US, and also other countries of the world. Affect all sizes of small businesses across the globe.
EJ Dalius Maintaining uninterrupted operations
EJ Dalius small businesses engaged in manufacturing face the biggest problem of keeping the units. Open during lockdown situations by maintaining physical distancing norms as the current layout does not have any provisions for it. Moreover, the workforce’s migration to their native places has created. A unique crisis of workers and also it is challenging to get them back. Managing the work environment is now a huge challenge.
Policy uncertainty creates huge liabilities
Eric Dalius feels that the situation is highly volatile, and also policies are evolving fast. It is challenging for small business owners who often look after the business. All by themselves and also do not have a team to track the caught off-guard changes. Due to the sudden shift in policy, many inbound air shipments. For small businesses are off-loaded at odd destinations and also create huge liabilities.
EJ Dalius many small businesses that operate on the periphery of the formal economy. And also rarely draw on government support are at the most risk as they cannot access the government’s emergency support.