Unfortunately, the crisis caused by the new Coronavirus has no end date, and those who will suffer the most will be new entrepreneurs. Understand in this article how this can directly affect you.
Currently, the Ministry of Health in Brazil has been taking measures to contain the Coronavirus, however, we know that the most effective action is simple guidance from the WHO to stay at home.
However, many have not given much importance to these recommendations, and have continued with their activities normally. Who will suffer from this directly, after those infected?
But of course, it is those people who have recently started a business and cannot stop now who will be directly affected.
Small businesses tend to be the most affected, following the decree and guidelines from the World Health Organization to combat the coronavirus.
According to information from the Federation of Commerce, Goods, Services and Tourism of São Paulo (FecomercioSP), this happens because, generally, many of the items that consumers buy from these small businesses are purchased on impulse.
How will coronavirus affect trade?
The Federation also says that small clothing stores, sports equipment, office supplies and R$1.99 stores, among others, will see a drop in demand. The high rate of contamination and the level of fear among the population will affect the sales volume of these small businesses.
Many new entrepreneurs in Brazil have limited cash flow to maintain day-to-day operations. In addition, companies do not have broad access to the financial system due to a lack of collateral. However, they can use credit lines from the National Bank for Economic and Social Development (BNDES), through accredited agencies and the Banco do Povo Paulista.
Furthermore, according to the publication, FecomercioSP says that sales of cars, household appliances or high-value products (normally found in medium and large companies) should only be postponed.
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