Consumer Confidence, Cost of Compliance & Reputational Risk - Navigating a return for Small Businesses during a pandemic

I am surprised that we haven't heard a lot more of these three terms as people, states & countries discuss the possibility of re-opening economies.

Perhaps that is due to the fact that prior to the current pandemic, these are not issues that you would readily discuss on a daily basis when looking at small businesses.

There is a demand to lift the restrictions but it is less obvious whether that demand would manifest in a viable level of consumer confidence for some of the goods and services being encouraged to open. Simply put, there are no guarantees that people will turn up.

The simple reason is that consumer confidence is extremely low and that is due to both economic and health related factors.

In the first instance as long as people are afraid of losing their jobs, they will be reluctant to go out and spend. It is now more of what we have we hold.

Consumer confidence especially in the midst of a pandemic cannot just be turned off and on by political will and optimism.

Secondly, as long as there is the fear of infection which carries with it the implication of falling sick, possible hospitalization, and even the risk of death, people would be reluctant to go out and interact with others.

As some states in the US, for example, begin the process of opening their economies and encouraging businesses to open, some business owners are extremely reluctant to comply. Even though they are feeling the pressure to take advantage of the order to open, they are refusing to open their premises because they have concerns about the consequences.

Aside from the cost of compliance which includes having enough tools and supplies for disinfecting premises, one other reason they have put forward is the high reputational risk factor.

The truth is, many small business owners don't want to be known as places where the virus resurfaced if there was to be a resurgence as some medical experts have warned.

Having to deal issues as cost of compliance, consumer confidence and reputational risks at this level is not something small businesses are used to dealing with so it will be interesting how we all navigate this path in the next months.

There is undoubtedly a need for expert support for these businesses and that level of investment would be vital if we are to get our global and local economy back on solid ground.