Coronavirus is a virus that has been reported in over 200 countries around the globe. The disease is spreading very fast as time goes by. There has no cure that has been identified for the disease. Around the world, the private and public organization are doing all they can to slow down the spread of the disease as it has impacted a lot in their businesses. The condition has led to a lockdown in most countries, thereby no business going on around the region. There are measures that different states have imposed to their citizen to curb the spread of the disease. The more the virus is spread, the higher the chances of increased death, and this impacts the business sector more so the restaurant business which highly depend on citizens to survive. In this article, we will highlight how the virus has affected millions of businesses around the globe.
The following are some of how covid-19 is affecting the business sector around the globe:
1. Closure of businesses
Business closure is one of the effects that has been seen in most countries. Due to the lockdown and the government encouraging its citizen to work from home, most business such as those that deal with clothing, building materials, electronic shops etc. have been closed indefinitely. These have led to people losing the source of income. In restaurant business, they are closing their services since they have no customers. The business is terming this better for them instead of operating on loses since they believe after the pandemic, there is a possibility of economic downturn.
2. Inadequate stock to sell
With the coronavirus continuing to spread in most countries, different manufacturing companies have been closed or have reduced the rate of production. It has seen some business around the state that depend on the raw materials from other parts of the world running low on the stock. When the stock of goods is low, it is a clear indication that there is increased prices that will hinder citizen from getting the products, thereby leading to close of the business. For example the restaurant business sector which depends on farming input has nowhere to purchase the raw material and prepare meals.
3. Increase in cost of goods
With companies closing, the level of production is deficient; hence the available goods are being sold at a very high price. More so, in China, being the largest manufacturers of phones has reduced the rate of how they are producing phones which has seen the phones transported to china being much expensive than before. Most manufacturers are taking measures being given by the world health organization about social distancing, which has made them reduce the number of workers in the workplace.
4. Reduction on peoples movement
One of the measures being undertaken to curb the disease is social distances which have led to a reduction in the movement of people. This has dramatically affected the transport sector and the tourism sectors of business since people can only stay in one location. It has led to the closure of some of this business due to the lack of customers. Most countries have reduced or brought to an end any air travel in and out their country. Restaurant business which largely depend on daily customers who travel and need somewhere they can purchase a drink are now being much affected by this.
5. Shortage of medical instruments
The disease has brought about the need to use different instruments in the hospital to take care of the patients available. Most of the hospitals around the globe have experienced a shortage of the device they require for them to offer better services. Hospitals have been overloaded with patients seeking medical attention which the doctors are finding hard to address. Also, the production of medicine has reduced, thus affecting the amount of medicine that is usually required every year.
With the pandemic spreading in different parts of the world, the business analysis is still finding out if the epidemic will cause a recession. Every business person, despite the disease affecting the business, should come up with a measure of how they can finance the business once the pandemic is over. The virus is causing different business that depends on other countries to close for a moment since the business between countries has slowed down. The only thing for the business people is to hope for the best for the coming days and observe measures to curb the spread of the disease.