The document discusses how the COVID-19 pandemic will impact small businesses globally. It notes that with rising health risks and economic uncertainty, consumer spending will be reduced, especially on non-essential goods and services. Physical retail stores will also see decreased popularity as consumers cut costs. Additionally, the cancellation of major events has eliminated important business opportunities for small businesses and supply chain disruptions are expected to impact businesses worldwide, decreasing revenues significantly for many small and medium-sized enterprises.

1. A PRIMER BY DESIGNS.AI
How will the
COVID-19 global
pandemic
impact small
businesses?

2. ● Given employment uncertainty and
increasing health risks, consumers
are seeking to cut costs as much as
possible especially for non-essential
products and services.
● Goldman Sachs projects that global
sales will likely drop by 24% in the
second quarter of the year.
REDUCED CONSUMER
SPENDING
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-
impact-small-businesses/

3. ● As much as 98.6% of all physical
retail establishments are small to
medium enterprises.
● Despite predictions of a looming
recession, 44% of small businesses
have not taken any measures of
preparation.
DECREASED
POPULARITY OF
PHYSICAL STORES
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-
impact-small-businesses/

4. ● The cancellation of major tech
events earlier this year have incurred
over $1 billion in direct economic
losses.
● As much as 53% of U.S. B2B
marketers consider in-person
events and trade shows an
effective channel for driving
conversion.
LACK OF IN-PERSON
BUSINESS
OPPORTUNITIES
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-
impact-small-businesses/

5. ● The global growth rate will likely be
cut by 1.5% in 2020 — over half of
what global economies would
have achieved otherwise.
● Economists fear that the COVID-19
pandemic may lead to a global
recession worse than the 1997
Financial Crisis.
RISK-AVERSE
INVESTORS
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-
impact-small-businesses/

6. ● One factory owner in China stated
that he expects production delays
to cost his company a 30-40%
decrease in annual revenue.
● Even SMEs in countries barely hit by
the pandemic will likely experience
supply chain issues given today’s
level of economy
interconnectedness.
MAJOR SUPPLY
CHAIN DISRUPTIONS
https://blog.designs.ai/2020/03/30/how-will-the-covid-19-global-pandemic-
impact-small-businesses/

7. READ THE FULL STORY HERE:
https://blog.designs.ai/2020/03/30/how-
will-the-covid-19-global-pandemic-impact
-small-businesses/