COVID-19 Effects on Small Businesses and Entrepreneurs
The effects of the COVID-19 outbreak that has shut down all non-essential economic activity in Jordan will have multiple layers of economic impacts that create breakdowns in supply chains for basic needs and livelihood inputs, potential shortages and price spikes in key goods, reduced markets, reduced spending and reduced trade.
Mercy Corps reached out to a wide spectrum of program participants, including entrepreneurs and small business owners in the dairy and livestock sectors, to get a better understanding of how businesses are being impacted during the shutdown and what mitigating measures they are taking. It became clear that economic shocks can provide both opportunities and threats, affecting different businesses in different ways, although the vast majority are being negatively impacted.
Recommendations
- Continue to monitor and assess economic impacts at different stages in time
- Research impacts on vulnerable groups who are being disportionately affected such as women and refugees
- Provide targeted support to businesses post-shutdown
- Layer humanitarian assistance with market support
- Ensure modern banking tools and financial inclusion programming are integrated into all programs
- Support the creation of an ecosystem that supports financial inclusion at all levels
- Support integration of technology into businesses operations
- Promote technology solutions that can provide market-based crisis adaptations
- Work to reduce credit risk for businesses and individuals