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Foreign Studies

The document discusses several studies on the impact of the COVID-19 pandemic on small businesses. It discusses how the pandemic led to a 22% reduction in active business owners in the US between February and April 2020. Certain groups like African American, Latinx, and immigrant business owners saw disproportionate impacts. The document also discusses challenges faced by businesses in Uganda and Indonesia due to the pandemic.

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20 views

Foreign Studies

The document discusses several studies on the impact of the COVID-19 pandemic on small businesses. It discusses how the pandemic led to a 22% reduction in active business owners in the US between February and April 2020. Certain groups like African American, Latinx, and immigrant business owners saw disproportionate impacts. The document also discusses challenges faced by businesses in Uganda and Indonesia due to the pandemic.

Uploaded by

dulanas.jerrah
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Foreign Studies

Due to COVID-19's social distancing limits and health- and economic-driven demand shifts,
many small enterprises, and entrepreneurial projects are likely to close. However, there is very
little early evidence on the effects. This study is the first to look at the impact of the pandemic on
the number of active small companies in the US, using nationally representative data from the
April 2020 CPS, which is the first month to capture early effects completely. During the critical
two-month period from February to April 2020, the number of active business owners in the
United States fell by 3.3 million, or 22 percent. The fall in active business owners was the largest
on record, with losses in almost every industry. African-American-owned businesses were tough
to hit, with activity plummeting by 41%. R. Fairlie, W. (2020).

Using a mixed method approach, this research looks into the issues that the COVID-19
pandemic has posed for entrepreneurs and the methods that businesses can use to turn things
around and move forward. Empirical research is conducted on the causes that have harmed
smaller businesses during economic downturns, as well as the policies and plans implemented by
businesses to overcome these obstacles. Qualitative research accounted for factors like
lockdown, remote work, digital marketing, and digitization. Descriptive statistics and
confirmatory factor analysis were employed in the empirical analysis portion. NVivo software
was used to create thematic analysis and hierarchy charts in the qualitative part. Organizational
readiness, government infrastructure support, technology insufficiency, and financial crises were
the main challenges companies faced. Marketing, strategic networking, product and service
development, and digitization were the major methods stressed by founders to overcome
organizational preparedness and budgetary constraints, while technological ineptness was
addressed by digitization. Chaturvedi and colleagues (2021)
The pursuit of this analysis is to look at how digital marketing (DM), e-commerce (EC), business
sustainability (BS), and financial performance (FP) affect firms. Micro, small, and medium-sized
enterprises (MSMEs). Covid-19 pandemic in Indonesia. The relations among digital business or
rather marketing sustainability, e-commerce & business sustainable development, digital
marketing as well as financial performance, e-commerce or even financial performance,
profitability, and the company's sustainability are investigated.This research is a questionnaire-
based quantitative investigation. SmartPLS 3.3.3 software is used to process data. The core data
was gathered by sending out online surveys to 120 MSMEs in Banten, Indonesia, who had been
affected by the pandemic. The results show that digital marketing has a significant effect on
business sustainability, e-commerce has a significant effect on business sustainability, digital
marketing has a significant effect on corporate sustainability—financial performance. However,
e-commerce has no significant effect on financial performance, and financial performance has no
significant effect on corporate sustainability, digital marketing has no significant effect on
profitability. Business sustainability through financial performance, e-commerce has no
significant effect on business sustainability through financial performance. The use of digital
marketing has been made to increase customer awareness. The market is utilized as an
innovation or shift in selling as an expression of e-commerce. The incidence of COVID19 in
Uganda is quite low compared to other nations; the country has documented 260 cases, 63
recoveries, and no fatalities associated to COVID19 so far. Indeed, Uganda took a variety of
efforts to contain the virus early on, including closing schools, restricting domestic and foreign
travel, utilizing hand sanitizer, strengthening handwashing stations, social distance, and even
installing door locks, among other things. While these precautions may have helped to the virus's
successful containment, they have had a significant negative impact on business.
A recent business snapshot survey by the Economic Policy Research Center (EPRC) in Uganda
found that three-quarters of the companies surveyed have laid off employees due to risks posed
by COVID19 and subsequent closing measures. Indeed, the results show that containment
measures have cut business activity by more than half. By sector, we find that agribusinesses
face the most significant difficulty in accessing input and output markets due to control measures
such as transport restrictions, quarantines, social distancing, and bans. Weekly market. In
summary, we find that micro and small enterprises have experienced more business decline than
medium and large enterprises. This finding is not surprising since most domestic micro and small
firms have stopped working due to failure. Implement health precautions such as providing on-
site accommodation for staff and cleaning and hand-washing supplies for customers. These
precautions have increased operating costs for businesses that remain open.
Fairlie (2020) Many small enterprises and entrepreneurial projects are likely to close as a
result of COVID19's social distance limits and health and economic-driven demand shifts, but
there is very little early evidence on the effects. This is the first study to scrutinize on how the
pandemic has affected people. It has impacted the number of active small companies in the
United States, using nationally representative CPI (Consumer Price Index) data (CPI) for April
2020, which is the first month to capture early effects completely. Over the important two-month
period from February to April 2020, the number of active business owners in the United States
fell by 3.3 million, or 22%. The reduction in active business owners was the biggest on record,
and losses in business activity were noted in almost every industry. Businesses owned by
African-Americans were particularly hard hit, with a 41% decline in inactivity. Latinx business
owner activity decreased by 32%, while Asian business owner activity decreased by 26%.
Simulations show that the industry compositions of these groups put them at a higher risk of
losing business activity. Immigrant business owners witnessed a 36 percent decrease in business
activity. Female entrepreneurs were disproportionately affected as well (25 percent drop in
business activity). In May and June, the number of active business owners remained low - down
15% and 8%, respectively. The losses continued in May and June, and the partial recovery from
April was felt across all demographic groups and in most industries. These findings of the initial
losses experienced by small businesses have important implications for future policies, loss of
income, and economic inequality.

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