COVID-19 pandemic hit the world unexpectedly and affected all of us. As it was an unprecedented situation for the modern world, there was a major recession like no other, which left people clueless about what to do and how to handle the situation. Any impact on businesses affects the working class, as well. As more industries started shutting their operations, more people began losing their primary source of income. As the larger companies were facing problems, smaller businesses began rising and making their name. They started making simple but helpful products with low capital investment.
Rise of Small Businesses
Most people experienced a plethora of emotions during the lockdown- many were lost, distressed, and felt unsure about the new situation. Money was a major issue for many, and thus with the increasing loss of jobs, many people started looking for new ways to earn an income. That is to say, they started looking for opportunities in the obstacles. Starting small-scale businesses helped them pass their time in the lockdown, while also earning some money. With not many resources at hand, people turned to their household items. This is how many small-scale businesses took root during the lockdown. What started as just a hobby, soon turned to profit-making plans. Soon, it grew popular among the masses, and small businesses began flourishing. Here are some of the reasons
Why small businesses increased in the COVID-19 era:–
Low Capital Investment– Since a lot of these businesses were home-based, the need for capital was minimal. People used the resources available in their hands and made the best out of them. Even with low capital investment, these business ideas were a definite hit among people.
No Workforce– Since these businesses were small, they did not need a large workforce. As people were waiting for this pandemic to get over, they started contributing their idle time to these businesses. It not only distracted them but also allowed kept their mind busy.
Ease of Publicity– Businesses that started at home did not need an advertising agency to market their products. Such businesses produced their products on a much smaller scale, mainly for their locality. For publicity, word of mouth and social media worked best. Posting their products on social media like WhatsApp, Facebook, Instagram, etc., garnered enough customers to get the word out.
Easy Manufacturing– The newly formed businesses showed the adeptness and proficiency of the owner in the making of their product. For example, if the product was tasty pickles or homemade food, they started delivering their products to nearby hostels or flats. As these businesses did not need a large setup, making these products was an easy and enjoyable task. Even if people made electronic equipment like a water-level alarm or automatic switches, they were easy to make and distribute.
Innovative Ideas– People, especially the younger generation, started to look for innovative ideas to start their business. They started thrift shops and made products useful in the environment of COVID-19. Electronic equipment like automatic sanitiser dispensers, DIY masks, DIY vegetable cleaners, etc., were some of the ideas they got in the pandemic. They implemented them and got astonishing reviews from this.
Good Use of Time– This unparalleled situation sent everyone into overdrive. With no positive news from anywhere, most of us started to feel suffocated. Starting these small businesses was a better use of their time. It kept their minds running and away from the needless worrying. Other than solving any issues, keeping them away from widespread negativity was one of the main reasons why people started these businesses. They not only helped themselves but also provided a helping hand to the ones who needed it.
These businesses provided the solution to their needless worrying. Not only people felt refreshed, but they also started finding what they are good at and how to hone those skills. Learning about business was another great result. Now that restrictions are far less stringent, people can look towards expanding their business. Taking small steps is necessary to keep these industries blooming.
Who knows, maybe they could just become the next big thing in India?