The coronavirus outbreak which started in China late last year has in the last few months managed to sweep across the globe with its epicentre lately shifting from China to Europe. With no treatment currently available and humans being the main carriers, areas with the highest amounts of international traffic have been the earliest affected and the hardest hit.

With reduced movement and social distancing currently being the methods thought most effective to contain the outbreak, commercial activity is being affected at all levels across the world. Zimbabwe and the rest of Africa have been trailing behind the rest of the world in the number of infected however it is only a matter of ‘when’ rather than ‘if’.

Since the possibility of our country being spared from the pandemic is so remote – especially with our own health system being in such a state of tatters, we can start looking at what to expect from the countries which have so far borne the full brunt of the epidemic and brace ourselves. The measures which are necessary for the containment of the virus will have a long-lasting and negative impact on small businesses. In currently affected countries, small business owners are already begging for loans and other forms of financial bailouts as many are already on the brink of bankruptcy.

Xenophobia and racism are affecting foreign and minority-owned businesses

Across the world, Asian owned businesses were already suffering from reduced numbers of customers far before the current aggressive containment measures were instituted. Even as people sit in their homes and increasingly turn to order food online, establishments that serve Chinese and other Asian cuisines are seeing far less of those orders than expected. This is mainly being driven by misinformation and poor knowledge among the public about how the disease is being spread.

In some cases, companies with workers of Asian descent are also being affected albeit indirectly as these men and women suffer verbal and physical abuse and are given wide berths in their daily routines. European nationals are also now increasingly suffering from the same discrimination in countries which currently have lower numbers of the infected.

Even on the same continents, countries have high disparities in the numbers of infected. This has resulted in growing distrust and fear of foreign individuals in neighbouring countries which have gone on to affect the businesses owned by these people.

Restaurants and bars

The social distancing and stay-at-home guidelines recommended (and in some cases aggressively enforced) by authorities have seen restaurants being required to limit the number of patrons present at any given time or even asked to close. In the state of California in the US, restaurants have been asked to sit no more than 50% of their capacity while bars and wineries have been asked to close.

With most public transportation systems have been shut down or are working far below capacity, the workers at these restaurants (and other businesses) have to use more expensive transportation options which in turn eats away more from these establishments’ revenues.

Artists and the entertainment industry

As public gatherings have been discouraged, artists and other entertainers such as street performers and independent musicians have lost their sources of income. Gallery showings and other exhibitions have been suspended. The artists who use these to market or earn a living for themselves have had their incomes severely affected.

Some musicians who sustain themselves by regularly performing at concerts and establishments and are small businesses in their own right have also joined the ranks of the virus’ commercial casualties.

Vendors, hawkers and other street sellers

As the amount of street traffic is reduced and governments are encouraging people to stay indoors, people who earn money by selling in public spaces have lost their sources of income.

Food trucks and vendors who usually make money by selling their wares on sidewalks, concerts and other public gatherings will have a difficult few months ahead of them.

Retailers

With people intent on only buying the essentials and nonperishables needed for prolonged stays at home, shops are seeing a slow down in business. Those that sell perishable goods are also experiencing huge loses as they run out of customers.

Event organisers and managers

Since most events and gatherings have been cancelled, the businesses that rely on these are also out of commission. These include the organisers of such events as music shows. Wedding planners are also unlikely to see any business in a long time. Associated businesses such as decorators, bridal tailors and equipment hiring services will also see a similarly drastic decline in business.

The transport sector

While the closure of most public transportation services should, in theory, see an uptick in the number of people who use private transportation services, fears of the spread of Covid-19 via surfaces means that in most cases authorities are also taking steps to limit movement through these.

Small business owners across the world are warning of impending bankruptcies and layoffs. Many analysts are also predicting a global economic decline which would see large amounts of the financial assets of businesses (and individuals) getting wiped out – something which Zimbabweans are more than familiar with. All signs point to the fact that local businesses should steel themselves for a battering more brutal than that which they have been subjected to by our own localized economic difficulties.