A study on the financial and entrepreneurial risks of small business owners amidst COVID-19

Abstract

The economy suffered a major loss when COVID-19 hit due to business shutdowns. Repercussions from economic downfall due to closed businesses from social distance policies has made many small businesses lose operation mechanisms and see a decrease in profit and sales. Many people lost their jobs due to businesses losses a record 22 million employees have filed for unemployment. In this paper, how the COVID-19 epidemic has changed people's behaviors and changed the way people shop. As more people are shopping online to avoid at risk situations at busy stores, small businesses are seeing losses in sales and customers. Also we studied when they rely on small profits margins, how the small businesses have suffered the worst losses, seeing a decrease in business sales and a lower revenue margin. This research shows how social distance policy has especially affected businesses vulnerable to COVID-19 risks. This often includes businesses that have large groups of people in close quarters or highly susceptible relationships that increase the risks of spreading the illness, such as restaurants or retail stores. Government help has been recommended especially for small businesses and workers who are most vulnerable to economic losses.