How will the COVID-19 global pandemic impact small businesses?

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How will the COVID-19 global pandemic impact small businesses?

https://blog.designs.ai/2020/03/30/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
















● 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
















● 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

















● 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














● 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















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How will the COVID-19 global pandemic impact small businesses?

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How will the COVID-19 global pandemic impact small businesses?