Business

COVID-19 is bringing down the economy, one small business at a time

With the declaration of a state of a public health emergency, the government has ordered to temporarily shut down cafes and restaurants, until further notice. With the uncertainty of the situation returning to normal, many cafes and restaurant owners are concerned about the sustainability of their business during this period.

The owner of the famous restaurant SeaHouse Cafe and SeaHouse Brasserie Ismail Faseel has raised his concern about the issue via a tweet stating some restaurants, cafes, and guesthouses closed during this time might not be able to re-open when the situation returns to normal.

With each passing day adding up to the shutdown period, these businesses are facing losses. Some might not survive if this extends to two months or more.

Every day has been struggling for these businesses now, with not being able to generate enough revenue to pay wages and rents. Many are expected to go bankrupt if this shutdown prolongs leading to many losing their jobs. As a result of this, a rise in mental health issues and devastating social issues are expected in society.

Many local business owners are calling the government to intervene and give the stimulus package to mitigate the losses.

Restaurants and Cafes are now opting for delivery services and special promotions to sustain their business in this challenging time.

Many economics has suggested that this is merely just the beginning of an economic recession with slowing down of economic activities amid the spread of COVID-19 pandemic. In this challenging time, not only restaurants and cafes but also other types of businesses such as salons and gyms are going through irrecoverable losses. Thus the government needs to provide the stimulus package as soon as possible to ensure the sustainability of businesses and to save many from getting unemployed.

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Source URL: Corporate Maldives

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