Financial Crisis for small businesses due to COVID19

 Almost every part of the world, the COVID-19 pandemic has badly hurt lives and businesses of many people. All size companies have faced the difficulty of liquidity, jobs and sales. Particularly small businesses with small size with smaller operating margins have to struggle most with their business.

Small Businesses are Facing an Uncertain Future

· Shut Downs: - The lock down and health issues had forced many businesses like hotels, café, restaurant, fitness centre, wellness and grooming center to shut down their business. In some places government has banned to open shops and offices due to COVID-19 pandemic times but on other hand where shops, malls and offices are open there is lack of customer due to safety purpose. It has generated many problems for small businesses to withstand the expenses. Even some owners have to shut down their offices and shops.

        Less Demand: - The market are facing crisis to lack of demand of goods like cars, clothes, accessories, furniture etc due to COVID-19. It has developed extra burden on the small business owners to survive with the daily expenses like rent, employee’s salary and bills etc. Less demand of product or services leads to capital crisis for the small businesses.

·      Access to Capital: - The biggest challenges for small businesses are access ofthecapital to sustain their business. To sustain they are changing their business or working style to make balance in their business. To keep business afloat and keep their supply lines open and converting their business online and make sure their employees can work remotely. Taking their business to online has provided relief to some small companies.

COVID- 19 has brought financial crisis to small businesses where some are still struggling while some have found alternate ways to overcome the changes that this pandemic has brought in their lives. There has been lot of changes like shopkeepers are encouraging the customers to sanitize their hand while entering the shop,  they are bleaching and cleaning their premises regularly, offices has started to deploy mandatory work from home, and if possible are shifting their businesses online. In addition to all the changes the industries are trying to calm the consumers, and are providing clear and positive message to attract them. As people with positive attitude knows that only right strategy and cool mind is the way to overcome such difficult situation. They are spreading message be calm and be patience, no situation is long lasting.