Comprehensive Report: Impact of Lock down on Business and Economy

This report examines the significant impact of COVID-19 lockdowns on businesses, particularly small enterprises across various sectors like hospitality, while industrial sectors faced labor shortages affecting production. Government-imposed lockdowns, aimed at curbing the virus's spread, led to business closures and economic instability. The report highlights the effects on profitability and productivity due to disrupted supply chains, reduced sales, and decreased employee output. It further explores structural damages within businesses, including loss of effective employees and weakened organizational backbones. Despite challenges, some businesses adapted through remote work solutions. The report concludes by emphasizing the widespread economic impact, including potential recessions and economic failures in developing countries. Desklib provides similar solved assignments for students.

Impact of lock down on business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of lock down on business:................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
The impact of lock down was very powerful which lead many business to shut down, mainly
small businesses from different sector was impacted such as business of hospitality sector was
surviving the lock down and many of them was shut down permanently (Al-Fadly, 2020). The
industrial sectors business have the advantage even during the lock down. In this report we will
discuss impact of lock down on the business.
MAIN BODY
Impact of lock down on business:
The COVID-19 pandemic impacted each and every thing in this world, mainly life of
human being. The impact shut down many small businesses and unbalance the structure of large
business. The government of every country took various steps to stop the spread of the virus,
they implemented lock down to stop the spread, this lock down means locking people inside their
home (Balla-Elliott, et.al., 2020). The government ask business to stop, industrial sector got
impacted because there was no labour to do the production and the business sector got impacted
because there was no employee in the office to complete the work and hospitality sector got
impacted because there was no tourism. Lock was good for people but bad for business but
business find the solution for this problem, they ask people to work from home. This was the
great step taken by the business to stop the loss occurring during the lock down period. The
stopping of the business leads loss to not only to the business but ultimately to the economy of
the country (Fairlie and Fossen, 2021). Almost every country have faced the impact of this lock
down. Many developing country fall under recession period and some country even find to fail
the surviving phase and become the lost economy. There are certain impact of the various parts
of the business such as:
Profitability and productive: the profitability of the business was heavily impacted, there was
no customer. For business their only way of income is through sales of the product and services,
the sales was impacted because there was no raw material available to manufacture new products
and the existing products and inventory was not available to fulfil the demand of the customer.
The productivity of both, the business as well as employee, the employee become less productive
during this lock down period. Due to less productivity, business face huge losses, productive of
employee plays an vital role in the growth of the business.

Structure: the structure of the business was badly impacted by the lock down, many
organizations lose their effective and productive employee, this often impact the structure of
business. When lock down begin, the business was not prepared to observe the impact, this
weakens the backbone of the business. The supply chain of the business was broken and
distribution become very difficult as government not allowing business to sell or deliver the
goods to the customer. It is still difficult for many business to strengthen their structure of the
organization.
CONCLUSION
In this report we have discussed impact of lock down on the business and which part of
the business was heavily impacted.

REFERENCES
Books and journals
Al-Fadly, A., 2020. Impact of COVID-19 on SMEs and employment. Entrepreneurship and
Sustainability Issues. 8(2). p.629.
Balla-Elliott, et.al., 2020. Business Re-Opening During the COVID-19 Pandemic (No. w27362).
National Bureau of Economic Research.
Fairlie, R. and Fossen, F.M., 2021. The early impacts of the COVID-19 pandemic on business
sales. Small Business Economics. pp.1-12.
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