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Harrison Brickett
May 1, 2020
Economics
Final Paper
COVID-19 & Small Businesses
There is no denying that COVID-19 has brought some extreme challenges to everyone
living during this time. There are some people losing family members and friends, while others
have been quarantined for almost two months now, and maybe haven’t even been outside for
more than twenty minutes. On top of all of the social problems that this pandemic brings, the
economy also takes a big hit, especially small businesses. Harvard Business School recently
conducted a survey for small business owners. According to the survey, 77% are extremely
worried about the impact of the virus, 54% expect the economy to fall into recession, and 49%
say that customer demand is down. Most small businesses survive off of only a few months of
cash flow, so when this big of a pandemic strike, their employees are affected too. There is no
answer that is set in stone, but there are a few steps and ways a small business could work
through this tough time.
From a humanity and mental standpoint, the first thing you need to do if you are a small
business owner is relax. These are uncharted waters that most owners have never experienced
before, and due to the fact that this is a rapidly changing situation, owners may need to act fast or
reassess on a certain decision. Owners cannot make decision impulsively. One decision could
make or break a business, they owners need to act accordingly. Owners need to also focus on
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themselves and not just the business. Yes, the business is probably the owner’s whole life, but
solely focusing on the businesses will cause extreme stress and will not lead to a good decision.
Now that the personal issues a small business owner may have during this pandemic it is
time to dissect how a small business can survive during this harsh time. Small businesses need to
take advantage of financial support from the government. Everyone has a different view on
whether the government is doing enough to help businesses, but the harsh reality is that the
government would rather save the majority of big businesses rather than try to save a bunch of
small, local businesses. The United States government has already put together ways to try to
support businesses owners. This situation can obviously change due to the fluidity of the
COVID-19 crisis, so owners need to keep themselves educated in a up to date manner. With that
