The World Health Organization (WHO) has declared coronavirus (COVID-19) a pandemic. This is a concern for small enterprises across the country as they employ around 40% of India’s total workforce.
This situation obviously directly affects small businesses, as they bring customers, suppliers, and workers together every single day.
Below is the list of some situations you should plan for now to help your business weather the storm.
Prepare now for these 6 coronavirus effects
Small businesses should prepare for these six effects, as the number of people infected with coronavirus (COVID-19) increases across the country:
- Short on staff.
- Supply-side shortage.
- Demand-side surge.
- Regulations on large gatherings.
- Travel guidelines.
- A financial impact.
How this global crisis could affect your business?
As the number of confirmed coronavirus cases keeps going up, small businesses across India are beginning to see the following impacts.
- Short on staff
Businesses may witness shortage of staff and must have a B-plan aligned with the current business goals or continuity plans.In the adverse case, if the government imposes a lock-down or regulates commutation and gatherings, you might have no choice but to send workers home.
- Supply-side shortage
Many businesses like auto, electronics, textiles and pharmaceutical companies have their supplies from China. The supply chain interruption caused by the coronavirus is already impacting the manufacturing process of industries in India.
Coronavirus has forced companies, economies, governments across the world to start thinking locally, because there are obvious downsides to a global supply chain-led economic growth.
- Demand-side surge
Now there has been a sharp surge in the demand for grocery, and personal hygiene items, as consumers have started hoarding necessary products. Indians in metro areas are stocking up staples like flour, rice and pulses besides disinfectants, hand sanitisers, diapers, and personal care items.
- Regulations on large gatherings
Section 144 prohibits public gatherings and has been imposed on groups across India.
The government advisory issued on March 16 recommended closing all:
- Schools and colleges
- Cinemas, Malls and Museums
- Cultural and social centers
- Nightclubs
- Spas and gyms
- Social, religious and political gatherings
These measures may seem extreme but is the only way to slow the spread of the coronavirus. By slowing the spread — we can lessen the impact on hospitals and other health care providers.
- Travel guidelines
Starting from March 13, 2020, all existing visas (including tourist visas) stand suspended. The only exceptions currently are:
- Diplomatic
- Official
- UN/International Organizations
- Employment
- A financial impact
Let us start with some positive news. The Reserve Bank of India (RBI) has introduced measures to pump more rupee liquidity into the banking system.
What this means for business is:
- The banking system will continue running as normal
- Business and retail payments will continue to be processed
- Continuance of government tax and other payments
The idea is that all critical functions of the financial system continue to be available to individuals, businesses, and governments, under all circumstances.
Now for the less good news
Despite the very welcome promise by India Inc. not to cut jobs or reduce salaries, not all Indian workers have been so lucky.
- The Federation of Associations in Indian Tourism & Hospitality (FAITH) predicts that around 70% of the hospitality workforce could become unemployed.
- With the entire country ordered to practice social distancing, businesses of all sizes are seeing a drop in footfall.
While these signs are worrisome, we must not be discouraged. Once the spread of the virus is stopped, India can begin to recover what’s been lost.
What can be done in the current scenario?
- Work from home & sell your wares online
This is a great opportunity and a great option. If you haven’t been selling online, now’s your chance to start. Doing so will expand your business beyond your doorstep.
Set up work from home options for yourself and your employees. You can designate employees to help you keep up with online orders, create social media posts, and fulfill other essential business tasks.