Challenges For Business During The Pandemic
                     Challenges For Business During The Pandemic
Jenny Knight
Writes for smb-corner.com 
Small and Medium Business Corner & 
SMB Corner
One virus, infection spreading rate high, human beings clueless, and it 
results in chaos – Pandemic brought everything to a stand-still. Over the 
past two years, the world economy is wobbling and struggling to bounce 
back. There are several challenges for business during the pandemic. These 
include loss of market, governmental restrictions, struggles with logistics, 
poor connectivity with clients, shutdowns of manufacturing units, and 
more.
One of the renowned survey agencies identified the four significant areas 
of challenges during a pandemic by the business:
 Revenue: More than 30% of business is suffering revenue challenge, 
and more than 45% of the businesses (SMBs) are struggling to pay their 
employees due to revenue reduction.
 Contingencies: Any business is full of unforeseen situations, and 
unfortunately, more than 10% of the small companies are battling this 
condition.
 Zero expertise: 1 in 10 companies (large and small) are facing the biggest 
challenge of zero financial advice during the pandemic. Lacking the know-
how of money can mess the entire business operations.
 Capital issues: No business can start without capital and assets. It is one 
of the combating points for many SMBs during the covid situation. 
Almost 8% of the medium-scale companies were found suffering from a 
lack of assets to sustain themselves amidst these uncertainties.
Major findings based on the study
 The impact differs from industry to industry: Pandemic severely affected 
the small and large businesses that call for human interactions during the 
pandemic. On the contrary, smaller agencies like childcare, online food 
delivery, and pharmacies picked up their businesses. The hospitality 
industry was the biggest hit, and some even succumbed to the pandemic.
 Adaptation and sustainability initiated: Most businesses found their way 
to adapt to the dynamic market to correct their economic condition. The 
retail business started online options, fitness companies switched to 
application-based classes, and dining patrons opted for curbside pickups 
– these are some examples of adaption that were apparent in these 
recent years.
 Rework on expenses: Businesses have understood that it is imperative to 
reduce the costs to increase the margin of profit or sometimes break 
even. Reduction in more than 60% of the marketing and advertising 
expenses, 40% of the payroll adjustments by laying off workforce, and 
nearly 20% of the companies opted out from insurance to save some.
 Government loans: Dependency on government aids and loans are 
increasing for staying afloat in a slumping economy. Paycheck Protection 
Program is one such important government initiative, opted by several 
small and medium businesses. Some companies also declared insolvency 
to liquidate some assets and pay off the debts.
Conclusion:
After almost a year or so of combating the dynamic economy, more 
businesses have adapted alternative methods to do business with more 
vigor and optimism. There are a lot of challenges ahead. It is significant to 
identify core areas that need improvement. It is essential to stay connected 
with customers. With the right combination of strategies, businesses can 
sail through these difficult times.
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