A PRIMER BY DESIGNS.AI How will the COVID-19 global pandemic impact small businesses?
How will the COVID-19 global pandemic impact small businesses?
May 21, 2020
The rapid spread of COVID-19 has shaken up economies all over the world. We’re in the midst of what economists say is an unprecedented global collapse in production, sales, and business confidence. One of the largest sectors affected by this are the small business owners and entrepreneurs that comprise 90% of the total business population. Without swift government action, even the healthiest of small firms are at risk of bankruptcy. Designs.ai has put together a list of the primary impacts of the COVID-19 global pandemic on small businesses.
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A PRIMER BY DESIGNS.AI
How will the COVID-19 global pandemic impact small businesses?
● Given employment uncertainty and increasing health risks, consumers are seeking to cut costs as much as possible especially for non-essential products and services.
● Goldman Sachs projects that global sales will likely drop by 24% in the second quarter of the year.
REDUCED CONSUMER SPENDING
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-impact-small-businesses/
● As much as 98.6% of all physical retail establishments are small to medium enterprises.
● Despite predictions of a looming recession, 44% of small businesses have not taken any measures of preparation.
DECREASED POPULARITY OF PHYSICAL STORES
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-impact-small-businesses/
● The cancellation of major tech events earlier this year have incurred over $1 billion in direct economic losses.
● As much as 53% of U.S. B2B marketers consider in-person events and trade shows an effective channel for driving conversion.
LACK OF IN-PERSON BUSINESS OPPORTUNITIES
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● The global growth rate will likely be cut by 1.5% in 2020 — over half of what global economies would have achieved otherwise.
● Economists fear that the COVID-19 pandemic may lead to a global recession worse than the 1997 Financial Crisis.
RISK-AVERSE INVESTORS
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-impact-small-businesses/
● One factory owner in China stated that he expects production delays to cost his company a 30-40% decrease in annual revenue.
● Even SMEs in countries barely hit by the pandemic will likely experience supply chain issues given today’s level of economy interconnectedness.
MAJOR SUPPLY CHAIN DISRUPTIONS
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-impact-small-businesses/
READ THE FULL STORY HERE:
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-impact-small-businesses/
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