Written by dr. David Annan
It is always easy to have a dream of starting a small business, but many entrepreneurs fail to understand the long-term commitment and management of the business.
It is always easy to have a dream of starting a small business, but many entrepreneurs fail to understand the long-term commitment and management of the business. Small businesses are employers. They accounted for more than two-thirds of the private sector of the net of new jobs created in 2018-2019 (SBA, 2020).
The advent of the Covid-19 pandemic has exposed the nakedness of small businesses, as permanent daily closures of small businesses generate long-lasting lay-offs and unemployment. The pandemic has exposed a small business that they cannot be community hubs or backbone of many communities.
Larger firms cannot rely on small businesses as economic multipliers (Suppliers, direct customers to B2B, or employers of many customers), and they cannot perform effectively as entrepreneurship engines. They can no longer create unique opportunities, particularly for women and minorities, as the permanent existence of small businesses is eliminating physical capital and investments. Many economies are turning into closed economies as the flow of imports and exports has somehow become standstill and battleground for nations’ politics as they cope with economic policy response implications. The government of nations should create on-going relief interventions to alleviate the collapse of small businesses and sustain recovery by building long-term resilience. Governments should ensure access to capital to level the playing field for all businesses.
Policymakers, large and successful business leaders, and non-government corporations must try to prioritize small business procurement by locking in demand. It will help promote credit access and a long-term commitment to small business big corporations that will give financial incentives and confidence to lend. Besides, they should pay receivables to small businesses in advance schedule and crafting support for small business and giving loans from institutions in relaxed payment schedules to sustain small businesses.