As Victoria faces its sixth lockdown since the Covid-19 pandemic, it has placed much pressure on small businesses across the state. A recent study done by Pricewaterhouse Coopers (PwC) shows that the state’s economic climate is suffering and is expected to remain that way for the foreseeable future. The study shows a drop of 22% in economic output in Melbourne and -15% in the rest of Victoria. The article further entails that 15% of Melbournians have lost jobs due to the pandemic and a further 9% of job losses in regional Victoria. Although the lockdowns are necessary for contact tracing and tracking to contain the virus, it is difficult to ignore the damage that they are doing to businesses across the state especially small businesses with little resources.
One of the many challenges that small businesses face is the lack of support. Small business owner Matt Raidal shares in an ABC article that the little timing that the Victorian government provided when announcing the lockdown did not give enough time for small businesses especially hospitaility venues to evaluate and organise. This left many Victorian owners and workers frustrated, with no hope. With the uncertainty of where the next pay check will be coming from. Moreover, the last three lockdowns not providing any financial support to small businesses have left owners unmotivated, physically, and mentally exhausted. The little financial support has left regional Victoria businesses “crippled” during these tough restrictions (ABC News, 2021).
Small businesses have gone through the last three lockdowns with no income support and owners are unsure whether they can afford to continue their businesses even once the lockdown gets lifted.
Regrettably, many small business owners are looking to make the unfortunate decision to lay off staff as they give up on predicting when the situation in Victoria will get any better. Businesses are struggling to afford to keep staff on with no JobKeeper payment, leaving workers with the stress of looking for a job during the lockdown.
Another tough decision hospitality businesses especially have been facing is destroying inventory. With no people to sell to and the abrupt lockdown rules, hospitality venues have had to discard perfectly well goods. Furthermore, the loss of celebrations such as weddings, Valentine’s Day, Father’s Day and Australian Open means a lot of venues have missed out on their busiest days.
In more office-based small businesses, managers are also facing challenges. Workers are seeing a drop in productivity (The Harvard Business Review, 2021) due to the work-from-home situation. Although working from home serves many benefits, such as no travel costs and the comfort of working in one’s own home some, workers still find it difficult to find the motivation to work. Managers are reporting that it has become extremely tough to manage and regulate teams.
The state’s economy is increasingly struggling due to lockdowns putting a lot of pressure on small businesses. The unpredictability of the virus has left both workers and business owners concerned about where their next income will be coming from. Additionally, working from home is likely to become a social norm even potentially even after lockdowns are over.
Add a Comment