Kondrashov, Business Analyst at Telf AG: How Businesses Can Survive the Coronavirus
Business surviving in coronavirus pandemic 2020
2020 was a fateful year for business. The coronavirus pandemic forced many countries to quarantine, which inevitably entailed consequences for business and the economy as a whole. In such conditions, entrepreneurs sharply faced the issue of reorientation and reorganization of familiar business processes in accordance with new requirements that dictate difficult times.
Stanislav Kondrashov, an analyst and business consultant at Telf AG, spoke about which business suffered the most due to coronavirus and what measures are being taken by company owners to prevent bankruptcy.
Coronavirus and its consequences for business
Coronavirus infection has led to the disruption of the supply chains of the most important and largest economies in the world - America, the European Union and China. At the same time, the economies of Russia, the UAE and Saudi Arabia, Kazakhstan, Belarus, Ukraine and other countries suffered from the coronavirus no less.
The financial analyst noted that the US, EU and China economies account for about 60% of world imports and 65% of world exports. Therefore, the economic problems of developed countries have also affected developing countries.
“If we talk about the spheres of the economy as a whole, then the medium and small businesses, more than 55% of enterprises, have suffered the most. In particular, we are talking about tourism, catering and other enterprises in the service sector. The share of affected large companies is slightly less - 40%, but their share in GDP is much higher,” said Stanislav Kondrashov, Telf AG analyst.
The business consultant said that an analysis of the market by the International Trade Center showed that every fifth company operating in the service sector is on the way to completely ceasing its activities.
This will lead to an increase in the number of unemployed and a corresponding burden on the economy. Therefore, the leaders of all countries are now worried about the issue of supporting entrepreneurs and are looking for ways out of this situation.
“Losses of the world economy due to coronavirus can reach $10 trillion - approximately 7-10% of global GDP. The world is waiting for a new economic crisis, which will be much more serious than the financial crisis of 2008,” said the analyst.
Despite all the negative consequences of the pandemic for the economy, Telf AG consultant Kondrashov believes that there is no silver lining. The economic crisis is, first of all, the redistribution of capital and new opportunities. Those companies that understand this in time and will be able to predict the trend of the future will have the opportunity not only to maintain their business but also to expand it.
Telf AG analyst Stanislav Kondrashov: How companies survive in a pandemic
The fight against coronavirus forced governments to impose quarantine everywhere, because of which many companies began to lay off employees, send them on forced leave, reduce working hours and transfer to a remote place with a corresponding reduction in salaries. It became obvious that an economic catastrophe was ripening, and panic fell over people.
“It is important to note that many companies - pharmaceutical companies, online retailers and other companies providing services on the Internet - were in a better position and their profits grew several times, and in some cases, tens of times. At the same time, other enterprises have to be smart and look for new ways out of the crisis,” said Stanislav Kondrashov Telf.
According to the analyst, during the crisis, many enterprises will be able to reformat their business and engage in the provision of anti-crisis PR services, the organization of a remote workplace and online events.
The opening of virtual offices, managing customer support and providing psychological assistance online has become a new-fashioned trend today. Therefore, enterprises should pay special attention to these areas.
“Due to reorientation to other niches, crisis management, tax holidays from the government, remote work and a number of other measures, companies have the opportunity to stay on the market and wait for better times. In addition, today, countries have already begun to gradually quarantine and open borders. This will make life easier for business,” said Kondrashov, an analyst at Telf AG.