New Covid restrictions to hit recovery of small businesses
Small businesses, who are yet to recover from the devastating impacts of the first wave of the coronavirus pandemic in Bangladesh, are set to receive another blow after the government yesterday directed them to shutter shops to contain the surge in infections.
In a notification, the government said shops could sell products online. But shop operators say most of them don't have any digital presence and don't know how to sell products digitally.
"I do not understand how online business works. The customer comes to our store and places orders. They get the delivery after a specified time," said Kawsar Hossain Titu, proprietor of Art & Gift Shop, which makes and sells crests, in the capital's Katabon.
"Now the store will remain closed. As a result, my sales will fall to zero. Our business is not online-centric."
Educational institutions, sporting clubs and corporate bodies are the main customers of the crest traders. The sales did not pick up as expected since educational institutions have remained shut for more than a year, and sporting events and socio-cultural programmes are taking place in a limited way.
The reinstatement of strict measures from today will deal a major blow to the weak recovery, the traders say.
Anwar Hossain, the owner of Best Collection in the Nurjahan Super Market in the New Market area, said he had to lay off six out of his eight employees as sales dropped at the height of the first wave in April and May last year.
He took a loan of Tk 12 lakh to start the business anew after the lockdown was lifted in June. His sales have recovered 60 per cent since then, and he has repaid Tk 3 lakh already.
"I don't know whether I'm going to fall in danger again. If the crisis deepens, I will have to quit the business."
The number of small wholesale and retail businesses in the country stands at more than 53 lakh, which is 39 per cent of the total business establishments, according to Helal Uddin, president of the Bangladesh Shop Owners Association.
SM Siraj-ud-dowla, a trader at the Cooperative Twin Towers Sports Market in Gulistan, said the business had been bad for a long time as schools and colleges were closed.
"The new ban may sound the death knell for us."
Millions of people had lost jobs after the pandemic hit the country in March last year. The incomes of people dropped significantly. As a result, many people have been buying nothing other than essentials.
Abu Jafar has been running a cell phone repair business in the Bashundhara City Shopping Mall for a long time. After the lockdown was partially withdrawn in June, he reopened the shop, and he was earning some money.
"We are living from hand to mouth. If the shop is closed again, I will be in trouble economically. I don't know what will happen in a few days."
Because of the pandemic, people are not buying flowers as they did during major social events such as weddings and corporate programmes, said Mohit Bhuiyan, owner of Alim Pushpo Bitan in Shahbag.
"My business has not been going very well. There was some pickup in activities, but they have also come to a stop. Those who recently placed an advanced order for flowers have also taken their money back. I am in a terrible situation."
Ashraful Islam sells shirts on the footpaths in front of Tejgaon College in Dhaka. Before the outbreak of the virus, he used to earn about Tk 2,000 a day. His income has dropped to Tk 1,000.
"The business had started to make a turnaround. Now I am going to face another danger," he said.
"We didn't get any help from anyone during the last general holiday. I survived with what I had. I don't know what will happen next?"
Several other small traders in Dhaka's Mirpur, Gulistan, Baitul Mukarram, Uttara, Gulshan, and Banani said they were perplexed after the government announced the latest strict measures.
Kamrul Hasan, CEO of e-commerce site Sindabad, said: "It's very difficult for small businesses to survive. A large part of them is yet to adapt to selling products online."
"If they are associated with an organisation like ours, we can support them during any business closure. They will benefit a lot from this."
Hundreds of shop-owners and employees in Dhaka's New Market and adjacent areas blocked roads in the afternoon in protest of the government measure.
A number of small traders say they want to keep the stores open for a certain period in compliance with hygiene rules.
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