Due to the outbreak of COVID-19 pandemic, the global economy has fully shaken up. The situation, things had changed a lot after a long time of lockdown period. Lifestyle pattern is completely transformed. Some things that are normally part of our daily life routine are missing or change, and some had made their position strong like the internet, social media, virtual world, work from home etc.
As the COVID-19 virus has hit hard on some of the business and work and has caused a big fall on the economic activities over the last few months, which never happened before. The startups that were running flawlessly before the pandemic is now struggling with uncertainty about future prospects.
Startups and Businesses That Will Collapse and Close After COVID-19 are:
1. Small Budget Restaurant
Due to the outburst of COVID-19 restaurants in India, especially small scale restaurant, are facing crisis situations. There is a big job loss among the millions of people working in food services. For the past two months, the restaurant was closed in the wake of Coronavirus pandemic. Some restaurant owners have taken a loan to finance their business are all staring at a dark and uncertain future. Since people’s are turning more health-conscious, hygiene system should be more maintained to improve at the material level. As according to the present condition, some changes in the overall arrangement will also be made to follow social distancing norms which will increase costs. And as there will be restricted on public gathering, limitation on eateries will continue, or they are allowed to operate at the lower service level. Online orders and take away have also declined. The overall situation to come back to the normal process will take time, and it will be a gradual action. This will affect the financial situation of many restaurant owners of facing high debt levels. Then there is no option left for an individual to shut the unprofitable business to save cost and raise money.
2. Local Tours & Travel Industry
The local tourism industry is also affected financially due to the Coronavirus pandemic. Since there is no movement of vehicles from the last two months, it has been a very tough time to cater to the financial needs of the persons working in the travel industry. As schools, colleges, institute are shut, and offices are also working with the limited capacity of staff members, most of the employees adapting the option of working from home, so local transport services as (buses, taxi’s, van, auto etc.) are working on the basis of essential needs which overall affects their financial requirement, and since the demands are drastically low, there can be loss of jobs for many people working in the sector which can result in shutting off the business. An operator in the travel industry is losing high revenue, and then they have to pay the salary of their staff member and also to repay the loan instalment which is a very challenging job at this difficult time.
To maintain the protocol of social distancing: there will be a lower carrying capacity of buses and other transport vehicles, which will decrease revenues leading to financial loss for each trip. Other costs of sanitizing buses and providing protective equipment to drivers will require more financial funding, which will be difficult to maintain for long without support and finance.
3. Clothing Shop
The COVID-19 pandemic has adversely affected the Apparel & Textile Industry. It is the important sectors of the Indian economy and is an important source for providing employment to millions of people, but in the lockdown period, many shops and factories are being temporarily or permanently closed. Layoffs have started among low wage workers, leading to reduced employment for working-class and people moving back to their home town. Now post lockdown also, to maintain social distancing, safety and health more customers are opting for online purchase of apparels which would affect the business of the local clothing shop. As the length of the recovery cycle of this phase will take a long time. Since the Government also can support only for 3-4 months, but cannot run the business for entrepreneurs for 9-12 months. These all conditions may adversely affect the local clothing shop, which may lead to the shutting of the business.
4. Automobile Repairing Service Shop
Due to the widespread impact of the virus, many plans have come to a halt and way of lifestyle has also changed. Roads, streets in the city which were always crowded with vehicles now there is a reduction or limitation in number from the time of lockdown, and generally, the vehicles that were on the road are emergency and essential vehicles. Now, since in the unlocking phase, life is returning to a normal routine, but definitely, it will be a gradual process. As there is still some restriction imposed for roaming out, all the schools, colleges are closed, most people are working from home, so usage of vehicles is also limited. And due to its limited usage automobile repairing services is somewhere affected a lot. Service centres across India are shuttered, and during the initial time of the lockdown, vehicle servicing was just not possible. All showroom and service centres had been inaccessible to the general public at that time. Hence Automobile repairing service centres have been impacted hard like other sectors. The new generation automobile brought new idea to fight the pandemic where the Maruti launched new accessories in the market to escape from Coronavirus.
5. Salon And Parlour
It is also one of the business from the list, which operates on a daily earning basis. Owners of the shops are unsure when their normal days of earning source will come on track. These are the setup that was built on their contribution of personal savings, struggle, and they are now facing the fear of reaching the end of the road. A person’s way of looking at the things had changed completely due to the widespread effect of Coronavirus. In this effect, this service also is puzzled about what lies on the other side of a pandemic. They are not sure how much longer they can sustain themselves. As to follow the norms of social distancing and other hygiene protocol to maintain there is the expectation of nearly half of the customers visiting. And then there visit, also be like, they will want to come and quickly get done the minor services and leave. Most of the customer will prefer to avail the service from home, which will definitely affect its overall functioning as a business can’t run for a long time if there is no work for months or more leading to close the shop.
These are some of the business which is at the risk of failure and loss. Now, since Unlock 2.0 phase has started things are slowly getting back on its normal way, but the frightful and disastrous effect of the virus in the life of an individual will not leave its imprint soon and so, it has become the toughest phase in the careers zone of many persons.