There is a huge lack of confidence among SMB leaders to run their business for at least six months. That is, businessmen does not think that they will be able to continue their business for the next six months. This has been claimed in a new Facebook global report. India and Pakistan have been reported with a high rate of SMB closures, with 32 per cent of industries in India and 28 per cent of industries shutting down in Pakistan.
Facebook Chief Operating Officer Sheryl Sandberg said in a statement, “While there is reason to be optimistic about vaccine arrivals, our latest Global State of Business report is a timely reminder that many (industries) are still vulnerable and they should need support.”
He added, “The people who are feeling the effects of the pandemic the most are women and minority-owned businesses. It is a reminder that whenever a crisis strikes, the most vulnerable are always hit hardest falls.” According to the survey, 31 percent and 39 percent of businessmen in Egypt and India have confidence in their ability to continue operations for at least six months. In contrast, Businesses in the US (68 per cent), Belgium (72 per cent), Germany (74 per cent), and Australia (79 per cent) are the most confident.
Businesses were affected by the lockdown during the pandemic
The report said that half of the Businesses in India have seen a reduction in employment. Operational businesses have admitted that they have rehired ex-employees during the last three months in India. The number of such businesses is said to be 42 percent. The Asia-Pacific region has seen an average closure rate increase of seven percent since October. For the report, Facebook surveyed more than 35,000 small business leaders in 27 countries and other regions in February.
During the survey, about a quarter i.e. 24 percent said that their businesses have closed. What is worrying is that more than half of the people surveyed feel that it will be difficult to continue operations for at least 6 months if the current situation persists. More than half of the people surveyed said that they have used digital gadgets to communicate with customers.
How will the coronavirus impact your business and Ways to Recover
The outbreak of Corona is going to change the whole world. The business will change and we will all have to adopt new ways of living, working and building relationships. Here are 10 things that will change businesses once the current situation returns to normal:
Reinventing the Business Model
- Entrepreneurs will rediscover their business models and other tasks this pandemic has left behind
- The first step for business reinvention is deconstruction – a new framework will be created for key elements of the business. Such as customer relations, resource management, key partners, revenue, cost etc., all functions should be closely observed and changed accordingly.
Business Model Leaner
- All operations that have no value to the customer will be eliminated and a continuous process of testing your assumptions about sales and revenue will be implemented
- A leaner business model can lead to greater productivity and smooth functioning. Since the ideal work will be eliminated, the focus will now be on the important and revenue-generating tasks which will enable the smooth running of the business.
- The faster delivery option can be explored leading to increased customer satisfaction
- Technology and business automation will be the backbone of everything which we use in business
- ERP tools will be used more than ever to minimize face-to-face interactions and updates
- Facilitate meetings, personal interactions and even events and conferences through remote work tools without any loss in employee productivity
Artificial Intelligence (AI) and Automation
- AI and automation will be much faster than previously imagined. With the help of AI, business automation, customer engagement and data analysis will form the basis of many business decisions.
- Estimating customer insights will become more accurate. Identifying the pattern, quality and safety measures of what a customer buys and personalized targeting of digital ads can be done multiple times using AI
- In the aftermath of the coronavirus outbreak, businesses will have to take multiple insurances to protect against unknown risks
- Businesses will be more specialized than standard policies that largely cover unknown risks
- Employee health insurance offered by companies will also cover costs related to epidemic illness and death
Expansion to New Markets
- The potential for greater profits, greater reach and greater impact is enough to excite anyone and decisions regarding expansion into new markets will be taken faster
- Prioritize and select your markets and internally assess which core competencies can be leveraged
- Going digital will help us enter new markets faster
- Companies will move towards cost-cutting measures for various tasks, which can be automated or outsourced if required
- Hiring will be leaner in organizations with more scope of work to be defined in fewer employees
- Companies will pay less attention to the hierarchical system and there will be fewer people in higher positions, which will significantly reduce costs
- Many businesses didn’t get any revenue at all due to the outbreak of the coronavirus, but still paid salaries to their employees
- We will see that after the Corona outbreak, most companies will ban Indians and carry out inter-departmental work with existing employees.
Investing on Employees
- Put forward a peer-led model rather than a leader- or boss-driven model with increased communication and engagement within the workforce
- Revisit your health leave
- Implement flexible working arrangements that can be mapped
- The mental well-being of its employees will become a priority for companies to function well
Focus on Innovation
- When a business tries again, your business idea and model re-found itself
- Companies have to innovate in their work at a fast pace, otherwise, they are ready to be destroyed
- After Corona, every business will come back and try to get its revenue. For many, it will become a “do or die” situation.
- Have life-saving plans ready for the recession of three months, one year and three years
- Faster upgrades will help you become more competitive and build your brand value
- Focus on innovation will help companies build their infrastructure and ultimately increase revenue
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