The world is at a complete lockdown due to social distancing, travel restrictions, closing down of stores apart from the essentials. It seems the world has come to a stop, with every operation across the globe coming to a halt. While it is negatively affecting people’s mental health, it is also leading to the downfall of several businesses. Millions of people have lost their jobs in this pandemic, indicating how badly it has impacted the economy.
Not only at the national level, but even the global economy is severely affected. The situation ultimately highlights the economic condition of enterprises, especially for a small organization. Moreover, the problem goes from bad to worse. Business owners left with no decision but to let go of their best employees or completely shut down the business.
However, the government needs to step up its game in these circumstances. They cannot sit by and let small businesses suffer, which will affect the country’s economy on the whole. The government bodies must enforce regulations, alter laws, and make decisions in the best interest of their citizens.
So, we highlight a few support measures that can help businesses survive this biological onslaught smoothly and help them get back to their feet post-pandemic.
Offer Credit
With a severe reduction in revenues, the enterprises are currently short on working capital. Working capital is essential when it comes to running a stable business. The amount of money ensures that business operations do not come to a halt when hit by situations such as recession and even outbreaks of viruses.
Banks or other financial institutions are reluctant to lend because they fear no return payment. However, there are different ways these businesses receive financial help.
For instance, they can establish credit guarantee programs where the businesses should be encouraged to pay later, if not sooner. The mindset that delayed pay is better than no pay; in the case of a company, collapse can be crucial for the businesses in these times.
Lessen Business Transfers to Government
Payments submitted by businesses can be reduced by governments; as a supportive measure due to lack of business operations. The transfers such as income taxes, excise duties, social security programs, property taxes, and so on should be wavered off.
This measure will help businesses ensure that they conserve their operating capital extensively. Many countries, such as Vietnam, also implemented this method, which allowed four-month tax payments.
Maintain Employment
Along with other federal agencies, the government should encourage organizations to maintain employees as much as possible. Even though government-mandated restrictions and lockdowns have left businesses in tatters, people are losing employment. Employment rates are crucial for a country’s economic standing in the world.
However, to ensure that all employees get to keep their job, the organizations must reduce their operating hours; hence, minimizing the pay scale. This way, some income will provide the employees and the insurance policies granted to them.
There is an urgency all across the globe to build a system that maximizes a business’ reach and helps them stay afloat even during this pandemic situation. Unemployment is something that significantly impacts the economy of the country and its standing on an international forum. The government needs to realize that its efforts can help save businesses from shutting and help maintain their country’s economy.
In hindsight, the situation is complex, and organizations don’t have many options left. However, compromises have to be made to stay united and firm during this devastating era. It will not ensure that the post-COVID-19 epidemic would flourish, but you will have the people on your side all the time.
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