The Effects of COVID-19 on Small Businesses

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As COVID-19 spread across the US, our country was forced to close down beaches, restaurants, stores, malls, churches, and other public places. The government has advised people to stay at home, practice social distancing, and avoid unnecessary shopping trips as a way to prevent the spread of this deadly virus. While these measures are essential for the safety and wellbeing of Americans, it has had a negative economic impact on small businesses.

A survey done by CNBC predicted that the disruption in business caused by the coronavirus could cause the permanent closures of 15,000 stores. This means that economic growth will slow and many people will lose their jobs. Also, the Economic Policy Institute predicted that COVID-19 could potentially wipe out three million jobs from the US economy before the summer. Due to the closures, many people are currently unable to work, and small businesses are unable to make revenue. This means that many people will be unable to pay their bills or make rent, and many of these small businesses will be forced to close, as they will not have enough money to financially support themselves. Another recent WalletHub survey found that 87% of small business owners say their business is hurting from the coronavirus, and 35% say that their business cannot last more than three months in current conditions. This further shows the impact of coronavirus on local businesses all over the country, and emphasizes how difficult it is for the local economies to survive given the circumstances.

So what does this mean for the economy? Small businesses are extremely important and effective in communities because they bring growth and innovation to those areas. They also help stimulate economic growth by providing employment opportunities, and they often offer these opportunities to people who are not employable by larger corporations. They help to support the communities that they are located in, and they foster development in neighborhoods. This means that COVID-19 will have a negative impact on local economies as well as the communities that are in them. Local restaurants and shops help to foster a prosperous, healthy environment for many people, as well as provide employment and stimulate economic growth. The resources that small businesses provide allows for that community to grow and develop, and this aids in the success of the people who live in them.

In order to combat this economic downturn communities must continue to work together and support one another during this difficult time. You can reach out and help in your community by doing things like buying gift cards or certificates to be used at a later time, donating online, and supporting them on social media, as these things will help to drive business back to them once this pandemic is over. While these things may all be helpful, the most important thing you can do is stay at home. The less social interactions we have, the quicker the country can heal. This means that businesses will be able to open back up sooner, and start earning revenue again.

Once the US is finally able to open back up, make sure to keep supporting local companies by going out to restaurants, shopping at local stores, and engaging in your community. While the virus will have serious economic consequences, if we come together and support one another, we will be able to recover from this.