COVID-19 is a large family of viruses that are known to cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).
This pandemic has caused a lot of businesses sink till they are even no more. Infact businesses suffered a lot. Among their suffering included the following.
Laying off workers: Ares such as Greater Accra and Kumasi experienced a partial lockdown as a measure to help prevent the spread the covid-19 virus. During this period, businesses were greatly and negatively affected. As we are all aware that business depends on customers to grow. So at the time of the lockdown people's movement was restricted causing most of the businesses to lay off some of their workers.
Supply effects: This is where the manufacturing companies come in, manufacturing companies were affected in a way that the cost of raw materials increased which in a way became a major problem for most manufacturing companies. The reduction in cashflow made it difficult for them to acquire expensive raw materials for production.
Financial effects: Finance is the backbone of every business firm, the pandemic cornered many firms to lay off workers just to maintain a reasonable cashflow. Revenue and cashflow deteriorated due to low sales. Moreover, financial institutions had no option than to tighten their terms for financial assistance.
Reduction in patronage: The patronage of good and services were massively affected. Fewer business firms were still operating during the era of the partial lockdown therefore, orders were reduced drastically. Most firms found themselves with fewer or no customers at all thus reducing revenue and cash flow.
It is clear that Covid-19 has affected our daily lives and the economy as well. The economy needs these businesses to be in operation to generate revenue for the state.
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