Question

Question 1
Explain and give three (3) examples of challenges faced by small businesses in the era of Covid-19.

Question 2

Mr. Kumah wants to cultivate perishable goods in Sogakope; a business which he has saved money for. Discuss three (3) post-operative problems he is likely to encounter

It's an entrepreneurship work

Answer 1

Q1) Answer-

Challenges Faced by small business in the era of COVID-19

• Customer Retention- Customer retention is one of the key aspects to ensure a steady flow of income for small businesses; however due COVID-19 crisis the customer retention has become difficult for small businesses as the customers are opting for alternate options in order to lessen exposure to the virus. for example, A customer who use to buy household goods from normal grocery shop is now dependent on online delivery services such as Amazon.
• Financial Distress- The COVID-19 pandemic has lead to a decrease in revenue which is very important for small businesses as they lack the capital to keep business growing hence the small business owners are financial distress during the COVID-19 era.
• Keeping up with legislation- In order to mitigate the spread of COVID-19 government has initiated several regulations and guidelines for various business abiding by these guidelines and regulations is another major challenge faced by small businesses.

Problems which are likely to be faced by Mr. Kumah in his perishable goods business

• The threat of product recall and quality control- If the customer returns the product due to quality issues or delay in delivery then it will be a complete loss to Mr. Kumah as the goods he is dealing with are perishable.
• Factors outside the control of businessman- Delay or failure in delivery due to traffic, poor weather, or any other natural hazard will result in total loss of value of the goods.
• Failure in inventory management- In perishable goods business inventory management plays a key role and failure in maintaining the accurate inventory of goods may result in loss of goods value.