Business Desk :
As with other economic actors, the new pandemic had a devastating effect on small businesses-the primary driver of growth and employment and the most vulnerable sector by disrupting national and international business networks, supply chains, and demand. To better understand the situation of small businesses before, during, and after the lockdown, several researcher organizations undertook a study of small businesses, predominantly light engineering firms, and young workers throughout 18 districts in Bangladesh. The study discovers that lockdown measures forced most small businesses to close. During the initial lockdown relaxation, one-third of businesses operated at reduced capacity. The decline in demand and the burden of fixed costs associated with running firms were the primary factors for the steep decline in profit. As a result, people lost jobs, and the gender divide widened, as labor-intensive female jobs (i.e.,beauty salons, tailoring) were disproportionately affected.
Additionally, rising risks for firms with weaker endowments and limited access to government stimulus packages and other financial support cause concern. The study underlines the need for specific targeting criteria and advocates for distribution platforms to aid more vulnerable businesses. However, both groups’ absolute profit was significantly lower than their pre-COVID profit, highlighting the critical significance of scaling up such rigorous training to develop more resilient firms during such crises.
Writer: Bipro Debnath, student of North South University.
