Covid-19 has disrupted the small and medium sized entrepreneur in a very big way as most of the business are struggling to survive now due to covid-19, We will discuss further the effects of covid19 in details please read article till the end you will find solution to it as well.
In order to save humanity and stoping the spread of coronavirus covid-19 governments are taking steps to minimise the health effect the hardest step has been taken by many countries to put human in lockdown and in the other hand it is effecting the economy in a very larger way, the most effected segment of business are the small and medium sized business because most of the small and medium sized entrepreneur are not prepared to deal with this type of situations.
Businesses such as travel and hospitality industry, Industrial production industry Finance industry, Outsourcing industry and many other industries are mostly effected with the present situation lets discuss the areas of effect point by point with solution on small and medium sized entrepreneur:
Effecting work from home it is a very big challenge for small and medium sized entrepreneur to handle the work force or they do not have the infrastructure to provide all its employee work from home opportunities as well many business are such a like where physical activities are mandatory to do from work location are largely effected due to lack of infrastructure which supports work from home activities.
Solution : we as a small and medium sized entrepreneur have to understand that coronovirus environment will be there with us till the vaccine is not invented tested trialed and approved we have to minimise our work from office culture and develop work from home infrastructure so that we can cope up with the situation in the near future and can deal with the situation we need to develop work culture in such a way that our work should not get effected due to this we should MIS systems Develop tools for tracking work from home productivity as compared to work from office production.
Effecting Production capacity small and medium sized entrepreneur are mostly effected as we know in order to starting of production activities it is required the manpower to work from their factory office etc, on the other hand it can combat the spread of coronavirus within the offices factories etc therefor it has been advised by the government not to start their productions or start with minimum capacity resulting decline in production capacity and increase in cost of production etc in SMEs.
it is also been advised to install necessary equipments for sanatization and detecting devices with in the offices factories which is not easily available in the market.
one of the major challenges SMEs are facing is migration of labours to their home town from work locations due to
Solution : We have to develop our industrial setup in such a way that we should be able to detect, cure and educate labours about coronovirus covid-19 dos and dont’s proper sanatization facalities proper detecting equipments needs to be installed in our units in order to be future ready for business growth
Effecting Raw material procurement most of the entrepreneurs are not able to get the required row materials available due to lockdown effected transportation system or movability of row materials within or outside the countries we are not able to perform the way it actually works that is effecting and small and medium sized entrepreneurs are not getting the required raw material on time due to this disruption ultimately it is effecting the entrepreneurs in procurement of row materials.
Solution : We need to change the way we procure once the lockdown is closed we need to develop channel of procurement in such way that we should be able to procure row materials locally with in the country or with in the local area itself with minimal transportation or movement we need to understand that coronavirus is going to be stay with is for longer time we need to change our business module to cope up with the situation to grow further.
Effecting Financial crisis : due to lockdown small and medium sized entrepreneur are not able to work properly and their expenses are still happening as they have to pay salaries wages rent and other expenses and on the other hand the production sales or other income are not happening it is leading to working capital shortage or operational loss is happening in the longer run it will effect the over all capital of the small and medium sized entrepreneurs.
Solution : we can reduce the financial effect in some extent by cutting down some unwanted expenses which is not going to incur in future like if you give your staffs the option to work from home it will also reduce the office expenses, cut down such expenses as soon as possible, you can see your budget of capital expenditure which are sounding unnecessary reduce those capital expenditure and adjust with the loss happened due to disruption.
at the end my overall conclusion is every challenges brings new opportunities and new areas of business the things which are not in our control we should not overthink on that i know it is hard but we need to take it in that way only, we needed to be strategies those things which are in our control which we can manage entrepreneurs if you have any suggestions feedback or you think i should cover any topic please comment in the comment section i will prepare blogs in that stay safe be happy for what you have.