Coronavirus pandemic has engulfed the entire world, creating nation lockdowns in most countries which have put immense impact on businesses of all forms, creating job losses and shutting down manufacturing operations across the globe. However, there is news from China that its industries have started operating as the country has no new coronavirus cases. But the cases of coronavirus are rising across the globe, bringing the world to halt.
All forms of industries are impacted due to the virus. Alignable’s Weekly Pulse Poll of 17,500 small business owners in the US late last week has revealed that 37% are struggling to stay open, operating with less than a month of cash reserves.
The weekly poll, conducted by Alignable’s Small Business Research Center, also found that another 30% are not that far behind, claiming reserves of just one to three months.
And only 33% of small business owners say they have the financial savings to survive a prolonged, Coronavirus-driven shutdown lasting beyond three months.
Industries suffering the most from these Coronavirus hardships include: travel, event planning, and retail businesses. A second Alignable poll of 52,000 small business owners found 56% of respondents from these major categories reported a significant, negative impact from the virus threat.
Federal Help Alone Won’t Fix This Urgent Need
Some retailers, event planners, and travel agencies have already had to close temporarily. Those that remain open are pursuing several creative ways to bring in revenue and to keep their employees on their payroll. However, the federal bailout might not come fast enough to keep their lights on.
“The answer to this problem has to be more than the federal government offering low interest loans to business owners,” said Alignable’s Co-Founder and CEO Eric Groves. “When it comes right down to it, why should they have to borrow money to solve a problem not of their making?”
Venkat Krishnamurthy, Alignable’s President and Co-Founder added, “Clearly, we cannot solely depend on the Federal Government to solve this problem in time — or on its own. So, we here at Alignable are proposing a three-pronged approach to help sustain the small businesses most in need of assistance.”
Considering the situations in the US, which has the most developed economy, the impact of the virus can be extremely damaging to the small businesses of other nations. The exact loss to all businesses can be determined only when the people are back to businesses. Governments across nations are announcing bail out packages to deal with the current crisis.
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