COVID-19 pandemic's impact on businesses is substantial. For this topic, you can focus on how businesses have been impacted and provide recommendations to rebound. For instance, small businesses have been hit hard by the pandemic. Businesses were forced to close during the quarantine, and as stores began to open, they were forced to rely on local residents as customers (tourist numbers were low because people were not travelling). How can they adjust to survive during this pandemic? How does an online presence become essential for these small businesses? Also consider how the pandemic may have been beneficial for some businesses.

 

The outbreak of covid 19 pandemic has resulted in both negative supply shock and negative demand shock due to which economic growth has declined.

Step-by-step explanation

The outbreak of covid 19 pandemic has resulted in both negative supply shock and negative demand shock due to which economic growth has declined.

In order to combat with the situation of pandemic, the counter measures taken such as lockdown, restrictions on cross border trade has resulted in negative impact on businesses, in which the major impact is witnessed by small firms.

Lockdowns have resulted in a fall in the consumption spending due to which aggregate demand has declined resulting in a fall in the real GDP and also low availability of raw material due to disruption in supply chain and no availability of labor, firms have shut down their operations in order to cover reduce their production costs as they have ran out of business.

Even post lockdown, small stores and retail chains have opened but their customer base has reduced as they do not have foreign customers due to restrictions on cross border movements, so they are finding it difficult to cover their costs. In order to increase the customer base, firms are using means of online market through which they can reach more customers that will help them in increasing their business and earn more revenue to survive in the market.

Pandemic have ran many firms out of business but it proved beneficial for some businesses, like grocery store owners, pharmacists, face mask providers, etc, as these products were necessities whose demand increased during the pandemic providing firms huge business.