5 strategies for small businesses to better handle Coronavirus impact

In this article, we analyse how small businesses may be affected by the recent surge of the Coronavirus (COVID-19) pandemic, and what possible strategies they can put in place to mitigate these effects.

COVID-19 is now being spotted in some African countries. This has caused concerns and hesitations for large gatherings, intercontinental as well as intra-continental travels.

While there is uncertainty with regards to the extent to which the virus may affect long-term economic activities, we are already witnessing the stifling of current business operations, due to the contagious nature of the pandemic.

The novel coronavirus (COVID-19) affects every aspect of life. Its symptoms include coughing, a sore throat, fever, headaches, shortness of breath, and malaise. Severe cases result in pneumonia, kidney failure, severe acute respiratory syndrome and death.

At 09:00 GMT +2 time on Wednesday, Reuters Graphics indicated a total of 198,366 cases globally, with estimates of 8,418 deaths. An overall of 117,493 cases (or 59% of the total) have been confirmed outside mainland China, while 82,226 people have recovered, 164 countries and territories have reported cases.

Despite Europe becoming the epicenter of the virus, the number of African countries recording cases has increased in the past two weeks. As of Wednesday at 09:00 GMT +2, the World Health Organisation Regional Office for Africa had the following number of confirmed cases:

North Africa

• Algeria: 67
• Egypt: 166
• Morocco: 38
• Tunisia: 24

West Africa

• Benin: 1
• Burkina Faso: 15
• Ghana: 7
• Guinea: 1
• Côte d’Ivoire: 6
• Liberia: 2
• Mauritania: 1
• Nigeria: 3
• Senegal: 31
• Togo: 1
• The Gambia: 1

Central Africa

• Cameroon: 10
• Central African Republic: 1
• Republic of Congo: 1
• Democratic Republic of Congo: 4
• Equatorial Guinea: 1
• Gabon: 1

Southern Africa

• Eswatini: 1
• Namibia: 2
• South Africa: 116 (according to the South African government)
• Mayotte: 3

East Africa/horn of Africa

• Ethiopia: 6
• Kenya: 4
• Rwanda: 7
• Seychelles: 4
• Somalia: 1
• Sudan: 1
• Tanzania: 1

Several African governments have declared a national state of emergency, implemented social distancing measures, allocated funds to deal with the effects of the virus, barred international travels from high-risk areas in Europe and the middle east, as well as closed their borders to minimise intra-continental travel.

Social distancing allows for minimum contact among people: avoiding public transportation whenever possible, limiting non-essential travel, working from home and not attending social gatherings (such as those in crowded bars or sporting arenas).

In relation to the virus’s impact on business operations, as we previously reported, it has caused disruption in the supply chain, production and demand (resulting in entities receiving less patronage, especially in travel-centric industries such as tourism). In particular, there has been a slowdown in trade happening with China, the manufacturing heart of the world and a major trading partner for a number of African countries.

“China is the world’s largest exporter and is responsible for a third of global manufacturing,” according to economic development specialist Omar Hassan.

“If the virus does directly affect your life, it is most likely to be through stopping you going to work, forcing your employer to make you redundant, or bankrupting your business,” said Hassan. “Small businesses, in particular, are struggling as supply chains dry up, leaving them without products or essential materials.”

Kim Polley – managing partner at Instinctif Partners Africa, a business communications consultancy – has a five-step approach to aid small businesses better deal with the effects of COVID-19. The tips are aimed at preparing and making such enterprises more resilient to the knock-on effects of the virus.

1. Put people first

Educate staff, communicate frequently, implement screening procedures in line with World Health Organisation (WHO) protocols.

Some businesses are testing all staff who have traveled out of the country in the last two weeks. It is also a good idea to set up a task team that reports into the C-suite [efn_note]C–suite refers to the executive-level managers within a company. Common c–suite executives include chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and chief information officer (CIO)[/efn_note] and serves as the coordinating hub for all Coronavirus-related queries, responses and strategies.

It is also important for businesses to consider facilitating home working as an option for vulnerable staff members – those who are immune-compromised, have very young or elderly dependents at home, and even potentially those who use mass public transport to get to work.

2. Scenario planning

The impact of Covid-19 on businesses will differ depending on the sector, way of working and customers/markets they serve.

Take some time to scenario plan and ensure that you have enough cash allocated to see the company through each scenario should they come to pass. Re-evaluating and reconfiguring your supply chain is critical too – if you export product to, or import product from, a Coronavirus red zone, it’s time to make another plan and come up with other strategies.

Additionally, you may need to consider what parts/products you hold back on or re-allocate as part of your re-shaped supply strategy.

3. Manage expectation and communicate consistency

Communicate consistently, clearly and without panic to your customers and stakeholders. Customers need to know that there may be delays and your business may need to consider pricing strategies or discounting to encourage retention.

4. Play your part

As a business, take a look at the community that hosts your operations. There may be a role to play in educating people about effective transmission containment strategies or even just investing in disinfectant and hand sanitisers for local schools.

Consider how you can add value to the people around your business by helping everyone understand and take accountability for their role in reducing the Covid-19 risk to themselves and their loved ones.

5. Practice, practice, practice

As with any good risk mitigation plan, it helps to practice your response to each scenario. Leadership and the Coronavirus task team should work together to run simulations of each identified risk scenario, devise strategies and practice how they respond. The ability to cope confidently and timeously will significantly and positively impact on stakeholder perception of leadership strength and company reputation.

Reporting by Gaby Ndongo. Editing by Magnificent Mndebele & Kupakwashe Kambasha. Feature image by Kaique Rocha from Pexels.