CORONAVIRUS – a word everyone is afraid of right now. This new virus has the whole world in chaos.
Majority of countries are in Quarantine – others in complete lockdown with absolute nobody leaving their homes unless absolutely necessary
An important question to ask is how dangerous is this virus really, not only for us people but also for small or big companies?
The virus’ impact on small businesses
For small businesses, this virus could be catastrophic. It could force many small businesses to shut down.
Customers are staying at home and order things online rather than buying them at their local stores, which ultimately results in less profit for small businesses.
Many small businesses such as restaurants are forced to close by the government, which means employers cannot pay the employees. This can ultimately lead to either employees losing their jobs or companies going into huge debts, when trying to pay the wages.
So, the question is how will the government deal with this? – will it support the businesses with paying wages in order to prevent the unemployment rate to grow unimaginably high?
The virus’ impact on large (global) companies
It is a known fact that global companies mostly produce their goods – or part of their goods – in Asia, especially in china. Since the virus first spread in China and forced most cities to be quarantined, many factories had to shut down.
This results in global companies struggling to meet the customers demand, as they are not able to produce the amount needed.
Apple, for instance, have admitted to be unable to supply customers with some products, such as iPhones.
The extent of the damage made to companies through the virus is still to be assessed, because the virus is so new. However, it can be said that this will affect many different companies, no matter how big or small.
The question is how will the government handle this, to minimize damage to us people and companies?