Just after four months of discovery, CoronaVirus Disease 2019 (COVID19) spread in more than 175 countries.
There are more than 800,000 confirmed cases and more 40,000 deaths as of April 1, 2020. The number continues to rise. As the pandemic expands into more territories afflicting more people, the governments of various countries attempt to control the further spread of the virus. In major cities, draconic measures are taken to avoid a further increase in confirmed cases and deaths.
Because of the growing pandemic, many businesses are affected, from small startups to large corporations. This translates to millions of losses during the spread of the deadly virus. Here are some of the general effects of CoVid19 to businesses worldwide.
Fewer Customers
Many countries are placing restrictions on their citizens. Some of the measures include social distancing and various levels of quarantine. Social distancing is enough for countries with a low number of reported cases. But for countries with uncontrollable spread, drastic measures are taken. Some governments enforce people to undergo home quarantine.
People are urged to stay in their homes for the time being. Some voluntarily isolate themself to avoid the disease, while others who have symptoms of the disease are in strict monitoring. In some places, community quarantine is in place in which people are not allowed to enter or exit their respective cities.
Because of these restrictions and the people’s fear of the pandemic, businesses lose foot traffic in their stores. Places, where people used to be, are now deserted. The once crowded malls, shops, restaurants, and cinemas are now empty. Any business that involves human-to-human interaction also has fewer customers.
Remote Working Are Enforced
To make up for the enforced laws regarding quarantine and isolation, many governments compel companies to consider a work-from-home system. In some countries, businesses are permitted to operate as long as they follow very strict protocols.
Many businesses have the choice of considering this option instead of temporarily stopping their business. Businesses like consultation services, construction companies, and teaching services can benefit from this provision. However, not all companies have the possibility to implement a work-from-home arrangement.
Dwindling Supplies
Aside from quarantine and social distancing, many countries have also shut down their borders. Air, land, and water travel to certain countries are now restricted. Because of the restraint, many businesses who get their supply from foreign countries are affected, like those who import flooring materials like composite decking from China.
Although shipping of essential materials is not banned in most countries, businesses still face the impact of the virus. Many shipping companies experience delays in their delivery.
Aside from the effect on logistics, certain manufacturing plants in heavily affected countries also produce fewer materials. As a result, supplies from these countries are relatively low. If the demand for the materials exceeds the number of supplies, the price will inevitably increase.
Temporary Closure of Businesses
Some countries take drastic measures to contain the virus. In some places, only businesses dealing with basic commodities are allowed to operate during the pandemic. It includes businesses in the food and health sector, along with other important needs. This forces other businesses to close down temporarily.
Businesses with low profit will also inevitably close down. A few businesses may even go bankrupt if the situation continues. As some of the companies’ supplies diminish, some businesses are also forced to shut down until they get a new batch of supplies. Other businesses that rely on people, like amusement parks, are closed for the time being.
Growth in Some Online Businesses
Despite having mostly negative effects, some businesses are thriving under these hard circumstances. Since people are avoiding direct contact with others, more and more people appreciate the value of online businesses.
Online shopping for basic commodities, such as food, water, clothes and other general homeware items, is becoming the norm. Certain brands try to adapt to the situation by offering delivery services. As people continue to use the service, demand in workers and supplies increases.
Streaming sites and other similar services also experience positive outcomes from the pandemic. Since people are staying inside, it is more likely for them to avail these services. However, the government and other institutions are urging people to use data wisely as more people use the internet and take up bandwidth.
Though not all online businesses have positive impacts on the spreading pandemic, for instance, travel agencies and ticketing services suffer from a lack of business.
Since borders are shut down, businesses in the tourism and travel industry are also negatively affected. Many governments restrict the entry of visitors from other countries. As a result, airlines, hotels, and other similar businesses are temporarily shut down.