With the coronavirus pandemic, companies are facing unprecedented work organization problems and economic difficulties. The stock market prices are collapsing; the turnover of companies are in free fall. While organizing our collective fight against the spread of the virus, the government has taken steps to help business owners overcome this crisis of unprecedented magnitude. The measures taken by the government to support the citizens and loan companies like Fundera and more are going in the right direction, this has made it possible to mitigate the difficulties.
The small businesses are notable for being a training ground for most entrepreneurs, a reliable intermediary for innovation, and a dependable supplier of employment. Sadly, they are the most affected. With them providing almost half of all America’s private-sector jobs, still, they are listed for 54 percent (30 million) of the jobs most vulnerable during the pandemic. Jobs at organizations with employees lower than 100 are considered vulnerable compared to large sectors that 40% of jobs vulnerable. Now, 500 thousand employers stand the risk to lose their jobs in 22 of the 50 states in the US.
Extract from a survey of more than 5,800 small businesses also points out the damages the coronavirus has caused to small businesses. The results state that the pandemic has already caused 43% of small private organizations to close up due to a reduction in demands and health reasons. The situation is the same in the mid-Atlantic region. 54% of companies have ceased operations with unemployment rates up by 47%. Some other industries affected include entertainment, arts, retail, personal services, hospitality, and food services all reported to have been affected by more than a 50% decline in the employment rate.
How small businesses can cope with the pandemic
The US government has already come to the aid of its citizens and putting together some initiatives to support small business owners. Every organization should be current on how government can help them with the cost of their operations. For instance, on March 27, 2020, Donald Trump, the US President signed into law the CARES Act, which includes $376 billion in relief for American workers and small businesses.
Perhaps the government help might not be viable or enough for you, another option you can consider is applying for a loan. You can search reliable loans companies reviews and see if you’re eligible. By utilizing the benefits of small business loans during the pandemic, you can make sure your company still has a good financial backup. You can get loans from companies.
Many companies are laying off their staff hence the reason for the surge in unemployment. Rather than laying off your staff why not upgrade their skill? You may want to put your staff through training on additional skills, which could make them more productive and efficient, rather than hiring more staff. Many online courses are not expensive, and these will allow them to capitalize on other areas of the business that is lacking, your sales team could perhaps also help out the marketing team.