It has been months since the World Health Organization declared coronavirus (COVID-19) a pandemic. At the moment, there is no clear sign of an end to the lockdowns in countries all over the world.
Governments have enforced closures of their economies. These have had a severe impact on all economies, leading to layoffs of millions of people. Many large corporations and small businesses have shut down. Most of them being local entities.
Here are some reasons why you need to support these local businesses:
Larger corporations have shareholder funds to sustain them through the rough economic turmoil. Local businesses rely on what the owners have in their savings. Due to months of not operating, most of their money has depleted.
To make things worse, most of these proprietors cannot apply for loans from banks. They are not able to meet the repayment criteria because of business uncertainty.
Those who have borrowed money from banks risk foreclosure. They could lose their stores, homes, and any asset they have pledged as collateral for their loans.
Local businesses are founded on hard-earned savings and through the proprietors' sweat and tears. You can visit many sites to learn how companies such as those in the roofing industry began as family-run outfits.
Income from these mom-and-pop stores provides food and shelter for their families. If they close down, households would lose their livelihood. More, if, as mentioned, they have mortgaged their assets to the bank.
By backing local businesses, you are also supporting the community as a whole. These from the area. Their closure will mean the loss of jobs that affect people from the neighborhood.
This could also affect relationships as family members, and friends lose their jobs. Through no fault of their employers.
Choosing to start a business over the security of a job requires a different kind of personality. It takes guts to face the challenges and risks it presents. These entrepreneurs have little assurance except for their belief that they will succeed.
This is the time they need all the encouragement possible to keep going against the odds. Knowing that they have the support of their community they serve helps. It will offer them hope to get through the difficulties.
One significant change in consumer behavior is the switch to shopping on the Internet. Stay-at-home orders mean that more people buy from the safety of their homes.
We have seen online giants like Amazon profiting by billions of dollars. Many corporations have shifted their focus to direct marketing and home delivery.
Local businesses do not have the resources and reach to compete against such big players. The only help they can get is from members of their community.
Governments have put in place programs to boost the economy. These come in subsidies to corporations and income to the unemployed. Yet, most local businesses usually don't fall into the category considered essential. Owners are not employees and, thus, do not receive unemployment benefits. Or any other aid that is provided.
In times of chaos such as this, we need to rally and back one another, especially those in local commerce. Focusing on self-interests only worsens the situation. It is through unity that we can sustain and move past the challenges we face today.
Support local businesses today so that you can ensure their future tomorrow.