Struggling small businesses
Social distancing and lockdowns will hit small businesses in near term
Social distancing and lockdowns will hit small businesses in near term
Small businesses will suffer the most due to the social distancing and lockdowns. Delhi Government has ordered restaurants to remain closed till 31st March, along with the limit of 20 people for public gatherings.
Shoppers are rushing to big superstores to stock grocery and essential items. The direct and indirect effects of the small-business shutdown may lead to recession. Small businesses are lifeblood of economies such as India, France and Germany. Hospitality businesses such as hotels have seen cancellations for two months of bookings.
As per Bloomberg: First, the upheaval cratered services and consumption as people’s movements were restricted, dealing a hammer blow to airlines, hotels, restaurants and shopping malls. That compounded a collapse in the manufacturing sector as assembly lines went idle while workers stayed home.
Canadian government has announced wage subsidy and financial help for the business owners. Eight business owners share how they plan to brave out the economic storm in the next few days.
Dig deeper: Epidemic is harming $28bn gig loan economy. Link