The coronavirus pandemic has had a drastic impact on the global economy. Quite obviously, a pandemic results in large scale disruptions. However, the damage caused by COVID-19 has surpassed all initial predictions and resulted in unprecedented loss. In this article, we cover the impact of coronavirus on business.
Let us take into account the impact of coronavirus on business-
Startups have been drastically affected by the coronavirus. Many startups in post-ideation, MVP or launch stage have been set back. Startups are struggling to operate due to shortage of cash flow. We have seen many startups collapse as a result. Furthermore, the incubation and acceleration of startups is on hold. Until the incubators & accelerators figure out a way to effectively train mentor and nourish the startups. Of course virtual incubation and acceleration has made its way, but it still has a lot of ground to cover. Startups are facing a tough time due to lack of investment and the lack of investing opportunities. It has become hard for startups to raise capital or even working capital. This is mainly because of the economic crunch caused by the pandemic.
Startups seeking corporate status and incorporation have put their registration process on hold. Their Trademark Registrations and filings for other Intellectual Properties have also been halted as a result of the pandemic.
Small business owners are living in tough times and also under the dread of facing unemployment since the decreased demand has resulted in little to no sales. They are battling succumbing to the economic aftermath of the pandemic. Small businesses which are dealing with non essential products are being drawn nearer to closure. Businesses are also struggling with filing GST returns. The newly formed businesses are having a hard time registering for GST.
Contrary to popular opinion, companies are not better off than the other businesses. Just like all other business entities companies are struggling to keep above the water. In a way, companies are more troubled owing to their size, compliance that they have to undertake, employee relations and customer engagement. Failure to meet Annual Compliance can attract huge penalties for companies.
Reliance on the Internet and Technology – Solution
COVID pandemic has changed our lives forever. In later years, we might be looking back and considering the pre-covid and the post-covid era. It has changed how businesses function. But, on the positive side it contributed towards the transition between the Third and the Fourth industrial revolution. It made us conscious regarding the loopholes prevalent in our everyday lives. It also gave us an idea of the working habits of the future. COVID created a lot of problems considering the work-life balance of people. We realized that remote employment and technology might be the way for businesses to thrive in the 21st century. It made us more conscious regarding the application of technology. Businesses are actively using technology to counter the impact of coronavirus on business.
1. Employee Management Software
These have been around for a long time. However, their importance has only come to light recently. These are cross platform applications. Otherwise referred to as platform-agnostic. These software can be used on both Android and iOS mobile devices as well as computers. Slack and Bitrix are a few examples of such software. Employee Management Software provide a digital workplace. In a way, these are formal versions of texting applications. These are equipped with a variety of features. Communication, delegation, task management, product and invoice management are a few features of these applications.
These applications have revolutionized digital corporate culture. Furthermore, they serve as the central node connecting the employees and the organization. They are suitable to every business regardless of its size.
With the advent of cloud computing, project collaborations have changed for the better. Multiple people can work on the same file at the same time. This has been instrumental in connecting employees. It has immensely aided the work-at-home culture. Google Docs and Sheets has enabled employees to simultaneously work on documents. Amazon Web Services has had an immense impact as well. Google Drive, Dropbox, iCloud etc. have made data sharing significantly easier.
Businessman and business entities however have faced and are still facing a lot of problems on Grounds of compliance, taxation etc. At Registration Arena, we take care of compliance, taxation, and much more. In line with the changing world, we conduct all of our registrations online. Reach out to us for incorporating your Private Limited Company, Limited Liability Partnership or One Person Company. We take care of your back-end business issues so you don’t have to.