Coronavirus (COVID-19) and Entrepreneurship


Published: March 16, 2020

Courtesy of Phys.org

Chaos or Opportunity?

With the global spread of the COVID-19 virus, the entire nation is on lockdown. Restaurants, bars, schools, the NBA, and other sports shut down until further notice, with no clear path or leadership from the federal government. Thus, this leads to each individual states trying to solve a common problem with no focus uniformity. Which, leads to massive lay-offs or different ways of working, from home, off-sites, takeouts, and new ways of doing business as was not there before.

With the advent of the internet, a new way of doing business that not dreamed of some twenty years ago. So this can be seen as an opportunity for some entrepreneurial minds. Through the utilization of the internet, a virtual meeting can be held and away from direct contact with others, which can lower the contact of this virus from spreading. Entrepreneurs are buying needed essentials for the medical field for consumers such as surgical masks, sanitizers, and the likes so that substitutes will appear.

Restaurants and Bars

Consequently, Restaranteers are likely to be at risk of losing revenue due to the closing down of their businesses for the next 30 day’s will have a dramatic effect on their business, the workers, and their families. Just the housing, caring, and facilitating of children who would otherwise be in school are now needing a place to be while their parents are working. So now we have a  loss of income from those who have to stay home, which will have an economic effect on the economy. Restauranteurs are losing money, now finding it hard to make payroll and other day-to-day expenses begin to pile up.

Cashflow issues will soon surface, and the question is, where do or how will Restauranteurs handle this new financial problem? Consequently, this can be a crippling financial problem for the small business owners, entrepreneurs for a 30-day closing of one’s enterprise with no early warning or planned closure. Rent, vendors, and other expenses need paying, so how or what is a small business owner to do while going through this crisis? Will their financial partners, being their various banking associations accommodate their needs?

Working Capital Loans

Working Capital Loans is a financial tool to help small businesses overcome some short term issues through immediate cash infusion into one’s business. Consequently, this and other financial instruments will be needed to smooth the sudden stoppage of business, in this case, was forced on them due to a national crisis. As a small business consultant, my agency has developed a partnership with a financial organization on the west coast that provides financing to the restauranteers/hospitality industry. Let us know if we can be of service by calling us toll-free at (866) 400-3040 or go to our website at www.donaldemitchell.com.

Conclusion

As the COVID-19 virus becomes a reality and the various changes in our every-day life, how will this affect us as a nation in the coming months with small businesses and the economy as a whole here in the U.S.? Social Distancing is this the new norm? Entrepreneurship is an economic force in our economy and provider of jobs and commerce, so the question is, if small businesses are being shut down by force by the government, how will this affect the economy as a whole? Would this be enough, send the U.S. into a recession? My take, entrepreneurs are opportunist and will find opportunity in this chaos that some see an opportunity as only entrepreneurs can see; in the end, entrepreneurship will discover the money-making way.

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