The COVID-19 outbreak has turned the table on economies. The impact has reached every nooks and cranny in a blink of an eye. And, the pandemic has hit businesses regardless of their financial strength and organizational size. Its impacts have sent a shockwave across the board.
Businesses, even the gigantic ones, have found it tough to survive let alone the small businesses that lack the required financial resources to stay afloat.
Not only is the virus, but the fix to the problems is also having a downside impact on businesses that depend on daily sales and service provision.
Restaurants, shops, beauty salons, tour guides, and others have either been closed or seen their income going down as more customers want to stay at home. The impacts are widespread and affecting different industries in different ways.
Small-and medium-sized businesses represent 90% of employment worldwide and are described as the engine of global economies. Protecting this business means protecting national economies.
The loss to the national economy is enormous as these entities serve the livelihood of many people.
Banks are extending repayment periods and also slashing debt interests. And economists also advise for the suspension of expenses like rents, utility and other operating fees. Some industries might indeed need government assistance to get over the emerging economic slump.
Measures like the provision of low-interest loans, emergency funds, slashing of utility costs, and rents are being prescribed by economists to tackle the bankruptcy and to let small businesses overcome the dire impacts of the virus.
The government has also announced a proposed tax relief measures expected to go through various procedures. These measures should take a fast turn.
The Ethiopian Herald April 24/2020
