COVID-19 Effect on Small Businesses in Australia: Economic Insights and Recovery Strategies Assignment Sample

COVID-19 Effect on Small Businesses in Australia: Economic Insights and Recovery Strategies

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Section A: Technical and Economic Analysis

Description of the issue that impacts the business of Australia

The covid-19 pandemic is one of the most hazardous issues that have impacted the small business industry or SMEs in Australia to a large extent. The article Alaouite et al. (2019) that has been selected mainly depicts how the covid-19 pandemic has affected mental illness among the stakeholders of the small business industry in Australia and, as a consequence, how the business has seen a downfall. Further, the article "small business mental health" It is mainly impacted small business enterprises when they are facing their covid 19 impact challenges. Besides that, mental health illness is also increased due to the impact of the covid 19 pandemic on Australian small businesses. The owners of the Australian small business sector continuously face their lack of effective strategies by which they maintain their mental health. So, due to the covid 19 impact, the owner of the small business continually experiences high levels of mental health issue.

The use of the economic concepts to demonstrate the impact of the covid 19 issue on the small business of Australia

Operating industry and its importance

In Australia, the covid 19 pandemic has impacted on the economy of the small business enterprises, like retail and manufacturing industries. As a result, it has impacted on productivity, loss of life and GDP. In the Australian business landscape, the retail and small company sectors are of utmost significance. First off, they significantly contribute to employment by creating a large number of jobs around the nation. Typically, small enterprises boost local economies by generating jobs in a variety of communities. The retail industry also helps other industries by boosting demand and encouraging economic activity through customer spending. Additionally, small enterprises and shops promote innovation by bringing fresh goods and services to the market. Due to their creativity and adaptability, which encourages economic diversity and resilience, they are essential elements of the Australian business climate.

Identification of the economic concepts related to the issue

Identification of Loss of productivity

On the other hand, small business enterprises, like the retail and manufacturing industry, have faced their productivity issues. Most of the non-essential retail activities have been sound down due to the impact covid 19 pandemics. As a result, the employees of the retail and manufacturing industry faced a shortage of labor supply issues, supply chain issues and also faced working conditions issues of the employees.

Identification of the Impact on GDP

In the retail and manufacturing industry, the impact of coronavirus has directly impacted the retail industries' supply chain demand and their daily operations. As a result, the high amount of unemployment rates also increased. This have affected the economic cost by more than 5% of the GDP (gross domestic product) of the small business enterprises, such as retail and manufacturing industries.

Identification Impact on the supply and demand of the products

In Australia, the retail and manufacturing industry has also been affected by their supply and demand issues due to the broadly impacted of the covid pandemic. On the other hand, the loss of the huge amount of supply of the products has broadly impacted the financial cost of the industry. On the other hand, the covid 19 pandemic also affected the financial supply of the products. As a result, the business of the retail industry did not increase the cost of the products.

Analysis of the impact of economic theories to the identified issue

Analysis of the loss of productivity in the small business enterprises

In Australia, the owner of the small business enterprises noticed that loss of productivity mainly increased due to the employees' high stress burn out. This is impacted on the culture of the retail industry business. On the other hand, due to the productivity losses in the retail industry. Apart from that, according to Andrews et al. (2021), small and medium enterprises require employees mainly have different types of technical skills which increases the total operational process of the business in a very smooth way.

Analysis of the impact of the GDP on the small business sectors

According to the owner of small and medium enterprises, the gross domestic product rate also reduces the yearly sales of the retail industry. As a result, supply chain demands for the products are also minimized. Besides that, in Australia, the retail and manufacturing industry have reduced their business sales gradually by more than 6.1 %, which is impacted on the Gross domestic product rate Cassavas et al., (2021).

Analysis of the impact of the supply and demand of the products

In retail and manufacturing industry, the covid 19 negatively impacted on the supply and demand of the products. As a result, the majority of the employees have been impacted by mental illness because they are jobless Alaouite et al., (2019). On the other hand, excessive amounts of anxiety and mental pressure mainly decreased the working capacity of the employees. so the customer demand for the products has also been impacted. Apart from that, the owner of the small business enterprises seems that, due to the covid pandemic situation, the business of the retail and manufacturing industries' products supply gradually transforming very slowly to other country because of the insufficient labour and their working capability. This shortage of labour supply also impacted the supply and demand of the products.so this labour shortage gradually minimizes the working procedure and the environments of the small business-like, retail and manufacturing industries.

Proper recommendation for mitigating the issue on the business of Australia

The small business-like retail and manufacturing industries faced huge issue during the impact of the covid pandemic on this business. As a result, it has also impacted on mental illness (Paul and Chowdhury 2021). To mitigate the productivity issue in the retail industry, the implantation of new technology redacted the huge amount cost of the products and also minimized customer services problems. The implantation of the product management tools increased the online bullying capabilities from the support. Further, the smart inventory control system also minimizes the inventory levels and also develops the profitability and speed of the response time of the customer.

Section B: Non-Technical Briefing Note

Clear description of the issue

From the survey of the report, the owner of the Australian small business sector has examined that, due covid 19 impacts, the stakeholder of the small business mainly faced their mental illness. As a result, many of the stakeholders of the small business enterprises faced anxiety problems, depression problems and huge amounts of stress-related problems due to the impact of the covid 19 pandemic. On the other hand, according to the owner of the small business enterprises, due to the impact of the covid 19, the mental health disorder has increased at a high rate. As a result, it has broadly impacted the economy, the productivity and the accommodation and food services of the various retail and manufacturing industries. Besides that the impact of the covid 19 pandemic, small business enterprises like retail and manufacturing industries employees lost their jobs due to the high level of mental illness attack. As a result, this high level of mental illness have seriously impacted the financial condition of the employee of the small business enterprises (Treasury.gov.au, 2023).

How the issue impacted on the various markets of the retail industry

Impact on productivity

The owners of the small business enterprises examine that the retail and manufacturing industry faced mental health illness issues due to their higher amount of unemployment rates. Moreover, due to the covid pandemic situation, the productivity loss also increases the serious problems of the depression and anxiety of the employees of the retail and manufacturing industry Burritt et al., (2019). Moreover, according to the WHO guideline, the international labour organization has collaborated with the “mental health at work policy" to minipig the mental health issue of the various employees of the retail and manufacturing industry.

Effects on GDP

Due to the high unemployment rate, it minimized the demand of the supply chain. As a result, the cost of the products is also increasing day by day. In the retail and manufacturing industry, due to the covid pandemic situation, the gross domestic product rate was also impacted by Tam et al. (2020). Moreover, the owners of the small business enterprises recognize that the higher amount of the unemployment rate affects the GDP of the retail business. According to the author, the unemployment rate increases and the customers are less likely to purchase their products from various sources. As a result, it has negatively affected the labour markets and their weak business economic growth.

Impacts on supply and demand

The supply chain of the products minimized the demand of the customer. As a result, the business of the retail industry gradually decreased. Apart from that, due to the high stress and anxiety affected the working condition of the employees. As a result, a serials mental illness also occurred Beque and Farhi (2022). Further, it has slowly impacted on the supply chain management issue. On the other hand, in the small business sector, the retail industry, the demand for the supply of the products gradually decreased due to the impact of the covid 19.

Recommendation for mitigating the issue

On the other hand, to mitigate the impacts of the GDP of the business of the retail industry, the excessive tax rate can be reduced, which is broadly impacted on the customer purchasing products Cai and Luo, (2020). Moreover, for developing economic growth to maintain the proper infrastructure, which can develop the economic condition of the business. Besides that, to mitigate the supply and demand of the product issue, which is increased mental illness, a good working environment is needed. Improver reduces the excessive working pressure by which mental illness issues gradually increase in the employees of the retail and manufacturing industries.

References

Selected Article

Alaouite, H., Guo, Y. and Sarkis, J., 2019. Decision support for collaboration planning in sustainable supply chains. Journal of Cleaner Production, 229, pp.761-774.

Other References

Andrews, D., Charlton, A. and Moore, A., 2021. COVID-19, productivity and reallocation: Timely evidence from three OECD countries.

Beque, D. and Farhi, E., 2022. Supply and demand in disaggregated Keynesian economies with an application to the Covid-19 crisis. American Economic Review, 112(5), pp.1397-1436.

Burritt, R.L., Herzig, C., Schmalleger, S. and Viera, T., 2019. Diffusion of environmental management accounting for cleaner production: Evidence from some case studies. Journal of Cleaner Production, 224, pp.479-491.

Cai, M. and Luo, J., 2020. Influence of COVID-19 on the manufacturing industry and corresponding countermeasures from a supply chain perspective. Journal of Shanghai Jiao Tong University (Science), 25, pp.409-416.

Caro, F. and Sadr, R., 2019. The Internet of Things (IoT) in retail: Bridging supply and demand. Business Horizons, 62(1), pp.47-54.

Cassavas, O., Hosseini, M.R., Edwards, D.J., Shukhi, S. and Chowdhury, M., 2021. Integrating BIM in higher education programs: Barriers and remedial solutions in Australia. Journal of Architectural Engineering, 27(1), p.05020010.

Ivanov, D. and Das, A., 2020. Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: A research note. International Journal of Integrated Supply Management, 13(1), pp.90-102.

Paul, S.K. and Chowdhury, P., 2021. A production recovery plan in manufacturing supply chains for a high-demand item during COVID-19. International Journal of Physical Distribution & Logistics Management, 51(2), pp.104-125.

Tam, T., Rao, A. and Hall, J., 2020. The invisible COVID-19 small business risks: Dealing with the cyber-security aftermath. Digital Government: Research and Practice, 2(2), pp.1-8.

Treasury.gov.au. Available at: https://treasury.gov.au/sites/default/files/2022-12/p2022-345571.pdf (Accessed: 29 May 2023).