COVID-19 Effects On Non-Essential Business Vs Essential Business
Megan Brown
With the newly named global pandemic, COVID-19, otherwise known as the coronavirus, the United States has surpassed all other countries with the amount of cases we have. Being said, a huge impact has been placed on all kinds of businesses. Whether positive or negative, all businesses have been affected. During this time, we are filled with uncertainty and questions about the unknown. The questions small businesses have may be different from the large businesses that were considered essential and have remained open in this time. So how has the coronavirus affected these different places?
Many states across the country have decided to shut down non-essential small businesses. However, many don’t know what that all entails. Businesses such as bowling alleys, museums, theatres, and sporting/concert venues have all been forced to shut down. Due to the decrease in demand for entertainment, these small businesses are losing not only business, but also income. With the current shutdown, it is difficult to say what will happen to these businesses after this crisis is over. For reference, the PBA has been forced to shut down leagues for the safety of all of its members and fans.
The coronavirus has taken a toll on leagues as they suffer from financial issues. Since all games have been canceled, commissioner Willie Marcial said “Overall, we will lose a lot of money. Millions.” He is expecting for the games to be canceled for at least two months. Even further, looking closer at home, Sussex Bowl has been closed and my league has been postponed. Being said, it is obvious that non-essential business have been impacted negatively, but what about the businesses that were considered essential?
The essential businesses are places in which provide groceries, health/medical care, financial support, and utilities. First looking into grocery stores, there has been a huge increase in demand for products such as toilet paper and sanitizer. Being said, this high demand has given grocery stores more customers for essentials foods and needs during this shut down. This can have the positive effect of making more money. However, grocery stores are having a hard time keeping up with stock. Douglas Baker, the vice-president of industry relations at the Food Industry Association was mentioned in an article that said, “Manufacturers, distributors, and retailers are working to make sure grocery stores remain open and stocked. Baker said, ‘“We’re in unprecedented times, consumers need to be patient.”’ Although struggling, grocery stores are doing their best to stay stocked up given the high increase in demand for essential products. Lastly, hospitals are one of the most important places during this time. They are being affected the most. Hospitals and health care centers are running out of room due to the amount of cases. Although this is a negative impact and could be a potential problem, most essential businesses are having positive effects with increase in demand and business.
In the end, regardless of the positive or negative, all businesses are being affected due to the pandemic. It will take time for businesses that are still open to catch up with what is happening. So, as the people social distancing, we need to be patient so that the impacts on these businesses do not worsen.
Works Cited
Clark-KeaneView, Céillie. “How the Coronavirus (COVID-19) Pandemic Is Affecting Small Businesses & Marketers.” Business 2 Community, www.business2community.com/small-business/how-the-coronavirus-covid-19-pandemic-is-affecting-small-businesses-marketers-02293330.
Dioquino, Delfin. “Despite Losing Millions, PBA Prioritizes Safety.” Rappler, www.rappler.com/sports/by-sport/basketball/pba/255149-priority-safety-coronavirus-luzon-lockdown.
Jiang, Irene. “Here's the Difference between an 'Essential' Business and a 'Nonessential' Business as More than 30 States Have Imposed Restrictions.” Business Insider, Business Insider, 31 Mar. 2020, www.businessinsider.com/what-is-a-nonessential-business-essential-business-coronavirus-2020-3.
Walsh, James D. “Panic at the Costco: Will Grocery Stores Be Able to Keep up With Coronavirus?” Intelligencer, Intelligencer, 14 Mar. 2020, nymag.com/intelligencer/2020/03/coronavirus-will-grocery-stores-be-able-to-keep-up.html.
I wonder what the actual number of non-essential employees that were fired or at least aren't receiving a paycheck is. The unemployment rate is probably higher than it was just two months ago...I like your connection to a bowling alley that you go to. We're all affected by the coronavirus in some capacity, and I like how you included one of the ways that you're affected, as well as including how small, non-essential businesses and essential business are affected by the coronavirus.
ReplyDeleteI believe some businesses that are still open cant even be technically labeled as essential. You can't really tell me that mcdonalds is an essential business or taco bell. If you think about it, it can only really be open to possibly keep money moving in the country as it has majorly stopped recently. Nobody is buying anything really except food, toiletries, and essential needs. It's sad how the smaller and sometimes more influential companies are being affected the worst.
ReplyDeleteWith all of these businesses being shut down, I think that this is a terrible thing for our economy, but not just business-wise-- overall. The salary of even the least-earnring worker is about 22k, so much more than 1 thousand per month. However, only 1 thousand dollars each will be given to working adults, which does not fully make up for what is being lost. I also have not personally heard of any systems doing so, but I think businesses should also earn money-- at least the ones that are using a lot of supplies right now-- but only to buy supplies that are needed at the time. It's a bit of an unfair situation altogether, but it makes sense that we will lose money as a whole. Doesn't make it any less worse, though.
ReplyDeleteEverything being effected by this pandemic is crazy, so many small businesses are having to close and some may never be able to open their doors again due to the losses they are experiences economically. I totally understand why so many businesses need to stay closed to prevent the spread of the virus but the impact it is having will cause months and months of struggle for the owners, employees, and even the customers. It is important to keep everyone safe while this pandemic continues to worsen, but the sooner the businesses can get back to operation the sooner our economy can recover. Your article shined light on some businesses that we don't even think about and how they are being impacted by all of this.
ReplyDeleteIt's crazy to think about how many businesses that were part of our everyday lives before have been shut down because of the virus. Sometimes it doesn't seem real, but your article made it apparent that it is. This will have a big impact not only on our economy but many others around the world as a lot of countries are going into lock down or people are quarantined like we are. My job has given me the option to stay home from work, but I can't imagine how scary it is for workers at "essential businesses" because they have to worry about who could give them the virus if they aren't careful. I like how you brought to our attention that there is still a lot going on outside our homes with businesses that we don't realize or take the time to realize.
ReplyDeleteThis whole pandemic is absolutely mind boggling. To see how much is affect not only small businesses but eve main stream businesses such as MacDonalds, Walmart, etc. Small businesses just around the city being closed down is serious because they may never be able to open up again because of this virus. Also not to mention how all this has impacted employees, and single parents having to raise their kids paycheck to paycheck and not being able to work right now has impacted that dramatically. I truly hope this all resolves and businesses that perhaps just opened can still see light at the end of the tunnel. Overall good read!
ReplyDeleteI think it's interesting what they are declaring essential and non essential. Like liquor stores can stay open but the dog groomer can't. What is deemed essential and nonessential isn't really for the government to say. For example, people with mental health issues that need to be around others, go outside, or see providers no longer can. In my opinion, that is essential.
ReplyDeleteSeeing this whole pandemic unfold, the issue of economic impact has become more prevalent by the day. At first, the shutdown was very focused on health, and it was expected to be over quick (for example, school was supposed to be back in 2 weeks), but as the stay at home orders started to get extended, economics soon rose up to be one of the top issues next to health. With the stay at home orders being extended for Wisconsin for another month, I really cannot help but wonder what short and long term economic impact this is going to have. I feel that the longer the stay at home orders remain in place, the more slowly the economy will recover, and I don't believe that this is only due to a longer period of halted GDP growth. The longer that we stay at home, the more scared and hesitant people are going to become to start going out and actively participating in the economy like normal. This is why I am nervous for how the country will bounce back after this, and I think that people's hesitancy is going to play a larger role in the economic impact than anyone has really accounted for. I am curious how the government will address this when everything starts to open again.
ReplyDeleteBeing the essential worker I am at Jillys car wash in Pewaukee, I have mixed emotions about covid. We were able to stay open as there are 2 other jillys car washes that double as a gas station and interior detailing so we were able to find a loop hole i think. There are also people with monthly and unlimited plans that would be getting essentially stolen from if we were closed. That being said...its not a coincidence that election time is around the corner. Socialists like Tony Evers are extending quarentine periods before they even know whats going on. The economy is crashing, not really because it can bounce back pretty easy but doesn't it help that the president who put the economy back together is being blamed for this though it is entirely the governors decisions to stay closed and intrude on our amendment rights. Trump is still going to win the country is just going to have to catch up. interesting fact...as a 17 year old I payed 7,000$ in taxes last year for bums to not work, have more kids so they get more money, and live off the system.
ReplyDeleteYour article was very helpful in clarifying what is considered an essential business, especially since it can be a somewhat ambiguous term since your definition of essential can be different than someone else's. I'm fortunate that my father's business is considered essential.I didn't see it mentioned but I believe stores that sell alcohol are also considered essential, I think this is because of the high rates of alcoholism in our state. I wish you well during these hard times, have a good day.
ReplyDeleteThis blog post was very informative in the areas of essential and non-essential businesses, learning about the affect corona virus is having on each one. Today, with the unemployment rate of the United States reaching 15%, many Americans are outraged that businesses are closed, and they need their jobs back. As you stated in the article, many small businesses have taken a great toll during the quarantine, and are having a tough time making it through. Today, many states have started to open up all businesses again, in an attempt to catalyst the economy and decrease unemployment. More than 50% of all U.S. have officially started to reopen, led by some of the first states like Florida and Georgia. This reopening clearly shows the concept of opportunity cost. This trade off is between lessening the spread of corona virus, and stabilizing the economy. This is an extremely difficult choice that many lawmakers are now tasked with. In the end, reopening businesses will help the economy recover, but other negative effects will most likely come with that choice.
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