The financial crunch from the coronavirus pandemic has hit all across America, and small businesses have felt the impact. The restrictions have had millions of people taking refuge from the outbreak by staying home and avoiding shopping trips that are not necessary.
An analyst predicted that businesses and their distribution from coronavirus could lead to about a 1,500 or more permanent retail stores that would be closed in the year 2020. The Economic Policy Institute predicts that this disease outbreak could wipe out more than 3 million jobs from the economy of the U.S. before this summer.
These concerns have already started for small businesses all around the country. A recent Goldman Sachs survey of more than a 1,500 small business managers learned that more than 50 percent of them don’t think even after the pandemic they would resume their operations, because of the present conditions they suffered in the hands of the outbreak.
Different states in the U.S. have already told businesses that didn’t sell products that were essential to temporarily close. Even in states where the case is different, some small businesses have already closed shops totally or reduced their business hours dramatically as a result of fear from the pandemic.
The Case of a Small Scale Business Woman in North Carolina
One of these small business owners stated she never could have imagined being closed for weeks. She owned a jewelry boutique store in North Carolina.
This particular business woman closed the doors to her store on March 16, 2020, after a very busy previous day. She was concerned that people around were not taking the threat of the disease seriously enough. Her shop normally sees about 15 to 20 people on a normal day, but that previous day was slower than usual; she still had about 25 customers throughout the day.
She felt like it was her duty as a citizen to serve as part of the solution, not be part of the problem. It was her choice to close her shop instead of being part of those ignoring the instructions from the government and the recommendations of social distancing. North Carolina has not organized everyone on the close of non-essential businesses, but it has ordered bars and restaurants to only offer delivery services or takeout.
Presently for retailers across the country, they continue to remain closed and will be closed for many more months. The owner of the jewelry store has no idea when she can open shop again. It feels like it could take months before some form of normalcy could continue.
With the cash flow from business cut off abruptly, she is left to think about how she’ll cover the rent for her store, which is about $3,800 monthly. She stated her landlord let her defer the expense for about two months with potential for her position to be re-evaluated down the road.
Times are hard, and we can only hope the coronavirus pandemic will be over soon.