Impacts of COVID-19 on small and medium companies

 Impacts of COVID-19 on small and medium companies

Since the onset of COVID-19, it has been the biggest challenge to most economical since most small and medium companies have collided due to strict WHO directives and increased cost of production. Drawing evidence from research conducted from different organizations, different companies had different expectations and perspectives on the virus’s trend leading to long-term impacts.

Several impacts emerged. First, there was the massive shutdown of companies due to high production costs and fear of succumbing many people to COVID-19; hence most places were under lockdown and curfews. Also, the demand for employees started to depreciate due to increased expenses, and most companies couldn’t afford to provide reliable health measures to their employees. Secondly, it wasn’t clear when the crisis would have ended due to the duration of covid-19 related distractions leading to uncertainties due to bad decision-making. The market of the products also declined as more people have lost jobs; hence money circulation has been negatively affected, and most people go first for basic needs.

The financial uncertainties since small companies had less cash with the increased expenses. They hence could not last for long. The majority of the companies planned to seek financial aids from their governments. Still, what’s shocking is threesome companies never benefited from embezzling the funds put aside and the difficulties of being eligible for Aid and reliefs. This was most experienced in developing countries, and this was a significant disadvantage because many firms could not get the funds to fund their companies. Adjusting to the inconveniences caused by the pandemic was another great challenge for the small and medium companies since they could not predict the period the virus could last and how the policies proposal might have affected their business and the employment burden; hence most companies made poor decisions and led to the massive dislocation of companies few weeks after the onset of the pandemic and before the introduction of government aids.

Another substantial impact was the alteration of the cash flow within different countries due to less money circulation, low export, and imports, restrictions of movements. It was difficult for the companies to find potential buyers, especially companies that used less advanced technology. Until now, about 40% of companies were temporarily closed due to covid-19. And approximately 55%of the companies are operational but with a reduced number of employees to meet the expenses

However, despite the catastrophe and devastation caused to companies, companies were creative still operational. Companies had to look for different survival mechanisms, such as working virtually from home in various sectors. Despite the restrictions that emerged, e.g., the introduction of curfew and lockdown, people could still work virtually, increasing these companies’ survival. Secondly, the pandemic brought a unique way for companies to adapt ways of working in a relatively safe space without causing exposure to the deadly virus. Companies had an opportunity to diversify, introduce new products into the market, and explore new potential markets through online marketing. These innovations helped in building greater confidence among companies

The aspect of people working from home led to increased productivity since people had to invest in changing their companies. Moreover, it led to community cooperation as people embraced the uncertainties. Some companies started to produce protective gear at an affordable price hence changing the inequalities.

Companies started to reframe after the COVID-19 hit. For example, in the music industry, artists were restrained from performing live due to COVID-19; most of them started to use online to capture their audiences by using social media platforms, e.g., Youtube, TikTok, etc.

In conclusion, companies should positively embrace the changes associated with COVID-19 by taking risks. For example, if employees come up with different ideas, they should take a risk, then they perfect it and find solutions