By Gimbiya Ekene Galadima
The year 2020 started with a note of dreadful disease and jobs have been lost due to this ongoing pandemic. 2020 ushered in coronavirus disease (abbreviated as COVID-19), which has forced many countries to close borders and to ban all shindigs. People are unable to leave their houses for two core reasons: as a result of the lockdown or the phobia of getting infected with the deadly disease. They are unable to go to work and earn money to fend for themselves and their families. Individuals whose jobs require physical presence such as construction workers, mechanics, electricians, hairdressers, barbers teachers, traders, bankers, accountants, and civil servants are forced to stay at home. Freelancers such as content writers, graphic designers, and transcribers who work remotely are also complaining of a lack of clients. This may be due to the fact that the clients, many of which are based abroad, are also financially limited due to the lockdown. The businessmen and women are the most severely affected; they rely on the profits made from daily sales. Interstate travel, which is necessary to get goods from suppliers, is impossible. Panic buying and stockpiling have left shops empty, and the price of commodities rising. The pandemic has hit many financially, as only essential workers such as health workers are able to work and earn a living.
It has been reported in the midst of the COVID-19 ruckus that the crude oil prices have fallen. A barrel of crude oil is more expensive than its contents; that may spell financial doom for many countries. Countries that depend on funds gotten from exporting crude oil may likely fall into debt, leading to a worldwide recession. The lockdown in many countries has also resulted in a reduction in productivity across many industries; this is enough to hamper economic growth. Funds are diverted from other sectors and budgets are increased to eliminate cases of COVID-19 across countries. It is expected that after COVID-19, many industries may have to let go of some staff and this means unemployment for many. We can only try to be prepared for the changes that will come after COVID-19.
Small scale and medium scale businesses (SMEs) are the foundation of a country’s economy. They are the businesses owned by the people we know; our relatives and friends. Small and medium-sized businesses are the businesses that provide employment at grassroots level and give back to the community. They provide jobs, loans and motivation to the young people, and are more connected to the people than large corporations. After COVID 19, many SMEs may pack up. This is because they may not have the funds to pay their staff and keep production running. However the small and medium-sized businesses that manage to stay afloat will emerge stronger after the COVID-19.
Many businesses have come to one realization this period: it is possible to work from home. Workers especially admin staff and accountants can do their jobs from offices set up in their homes with a computer, table, and chair. Health workers can even see some patients from home, with the rise in the number of websites where you pay money to get health advice. Small scale and medium scale businesses can use remote workspaces on Google Hangout, Slack, and Voom to do business and save the funds required to set up branches and large offices after COVID-19. This will enable these businesses save money and employ more people, thus helping boost production and the economy of the country.
Financial management is important for the sustenance of a business. Experienced business owners know this; that is why they recruit good financial managers to ensure they do not experience financial loss. SMEs post COVID-19 may realize that resources and revenue have not been properly allocated in their businesses. They may then require the services of a business consulting firm like 4ITAFRICA, which deals with financial management and helps invest in businesses that are in line with the Sustainable Development goals. Their staff will even be educated on financial management, and that would help in increasing awareness on business risks and opportunities. This will help small and medium-sized businesses save money and expand, creating more jobs and contributing largely to their country’s Gross Domestic Product.
Social media is one way to increase awareness of any business. Small and medium-sized businesses that were not actively using social media before COVID-19 can actively use social media post-COVID-19. They can organize online campaigns with fliers and posters to make customers aware about their business. This will increase business patronage, and they can collaborate with delivery services to deliver goods across a country. They can also do giveaways on social media platforms; this helps increase the customer fan-base and empower people who will also contribute to the development of the nation’s economy. Online training can also be done for students and interns, who would be encouraged to set up their businesses in the future.
Small and medium-sized businesses give back to societies in the best way they can. They can help by organizing skill acquisition programs for the community they are based in. This will create a good attitude to work and encourage people to set up their own businesses, contributing to the economic growth of their country. Improving skill set of their workers will also enhance productivity and encourage economic growth. Getting funding may prove a challenge post COVID-19 so partnerships and collaborations with other businesses might be the way to stay in business and expand, increasing their contribution to the Gross Domestic Product of the country they are based in. 4ITAFRICA can help solve the problems of partnership, collaboration, and investment; as they have an umbrella that houses SMEs together. There have thus been too many speculations about the future of the world economy post-COVID-19 but with strong determination and a positive attitude, SMEs can help the economies of the countries they live in to bounce back stronger and better.
Gimbiya Ekene Galadima is the author of a poetry volume TIRED. She is an employee-in-training at 4ITAFRICA.
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