Crucial Test For Entrepreneurs

Crucial Test For Entrepreneurs

 The world has been caught unprepared with the coming of the deadly virus, COVID 19. As it progressed in China, many have thought that it would not become a worldwide concern since just after a few days of rapidly spreading in Wuhan, people were forced to just stay within the city and that their government immediately provided temporary shelters to treat those who were affected or have been exposed to the virus. Apparently, it was not enough since there were those who fled and went to other places, thus spreading the virus out of proportion. Their intention may not be about further spreading the virus, but for fear that if they would stay, that the virus would eventually kill them. Unfortunately, their unwise decision affected more people, thus it has become a pandemic threat.

For weeks after the COVID 19 threat become the headlines in several countries, the Philippines have been calm but initiated precautionary measures to ensure the safety of the whole country. However, we were not spared from the deadly disease. And the proclamation of the enhanced community quarantine may just be the best decision made by the president so that the spread of COVID 19 may be prevented. Just like most of the things that we decide on, there are both positive and negative effects. And one may find it difficult to weigh which one should be taken.

The enhanced community quarantine was a decision to ensure the safety of the people by preventing them from going out of their homes and be in constant contact with many people, particularly in public transportations, malls, restaurants, etc. While some may see it as an effective means from being exposed and infected, the business sector are the ones who greatly suffers from it. Surely, they are also concerned with the welfare of their family and employees, but to abruptly stop operating businesses is a huge blow for their companies. As requested by the Department of Labor and Employment (DOLE), they have asked companies to give out the 13^th month pay of the employees to aid them for the weeks of not being able to work. It is such a struggle for both the companies and employees because this means that the effect of the COVID 19 has hit them tremendously, although not health-wise. The question is about the small business owners who rely on their business for their everyday expenses. Who can they turn to? The government has somehow promised assistance for the people with regards to their basic needs, but people are worried that the supplies may not be enough for everyone.

The Effects of Enhanced Community Quarantine

The enhanced community quarantine has led to travel restrictions, as well as social distancing will surely drive any country into a recession. Although in some countries, their preventive measures may have led in the further proliferation of the virus, the rest of the world will be suffering until the late third quarter. The consumers being mostly at home, the loss of revenue by businesses, and some workers may eventually lose their jobs because of this. And with this, there would be an increase in unemployment which is another battle to fight by any government. For sure, investment contracts and corporate bankruptcies will increase which will significantly put pressure on both the banking and the financial system.

Overcoming economic damage in the second and third quarter is expected and it may take until the fourth quarter before the world may be able to genuinely recover. Thus, the Global GDP is surely at its lowest in 2020.

The huge malls have sent out an advisory stating that their amin store would be closed until further notice while supermarkets, drugstores, and banks will continue to serve the people at shortened time each day. Billions of pesos are lost because of this. I am not against the enhanced community quarantine. I just feel sorry for those who are not able to have enough money to sustain the needs of their families. Some companies may not be able to provide a whole month’s salary to their employees because business has stopped. Probably, the best that they can provide is just their 2-week’s salary.

Let’s just say, a certain company may still be able to provide the needs of the people because they have enough resources to make their products. However, the spending ability of the consumers will not be the same. Thinking that they need to have money set aside for emergency purposes, the consumers would naturally cut down on spending. Thus, they would rather tighten their belts for a while to ensure that they have enough finances to hold them all throughout the enhanced community quarantine period.

The problem persists and we are unaware when this will all end. In times like this, we just all need to be more understanding and vigilant. We cannot change how things are going as of now, but to abide by how the government deem it as an effective means to go all out in protecting the people. Yes, the entrepreneurs are likely to suffer as long as the virus has not been completely eliminated. But, all we can do now is to fervently pray that we can all get pass this.

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You may contact Armando “Butz” Bartolome for questions and more information.

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