Worried that your favourite restaurant in the neighbourhood might not survive an extended lockdown? Or your preferred hangout-cum-bookstore in downtown might have to shut shop?
While the growing footprint of Covid-19 global pandemic exposes systemic cracks - both in public health and business models - it has also pushed communities to innovate, mobilise and recue small enterprises on the verge of collapse.
Several online affordances seeking to sustain small businesses have started to offer dining bonds and gift vouchers which can be redeemed at a premium as and when markets open up and normal economic activity resumes.
For instance, in Michigan, www.savemyfaves.org is beseeching citizens to buy gift vouchers to “flatten the Covid-19 the curve of the lost income from Covid-19” and save “your favourite shop or restaurant which might close forever”.
Proceeds from the purchase of these cards is being used to keep small businesses afloat or to buy supplies for the frontline staff combatting the virus.
An Oxfam study released last week predicts nearly half a billion people across the globe would be pushed into poverty by the Covid-19 pandemic. Small and medium enterprises employing a large chunk of the workforce would be worst hit.
“Where do we get most of the innovations in the economy? We get it from the newest firms. What we don’t want is to kill the innovation that kills the economy. They will be depending on citizen behaviour, community organizing. Several websites have popped up in different states,” Lisa Cook, Professor of Economics and International Relations at Michigan State University, said in an interaction organized by John Hopkin’s University earlier this week.
Another website finding traction to help sinking hospitality industry is www.diningbonds.com. It claims to be a global initiative to connect restaurant industry with diners to “purchase "bonds" at a reduced cost today and redeem them in the future for face value.”
Online donations and funds are typically sought by those unable to foot medical bills and expenses. And as such, the call for crowd-funding to restaurants and small shops afloat is also symptomatic of cracks in business models small enterprises work on offering scarce social and job security.
“Restaurant business is a good example. Many people employed by that sector are living cheque to cheque. And suddenly if they do not have income it really exposes the vulnerability we have in this country and around the world to a shrinking middle class. The growing vulnerable population which was always vulnerable that it isn’t just poor but the working poor. Suddenly they are poor because they don’t have a job,” says Kathleen Day, lecturer at the Johns Hopkins Carey Business School and a specialist in financial crises.
“I think there is going to be a lot of organizing around this. Gift card purchases will help and typically people don’t cash certificates that will help businesses, this is just free cash,” says Lisa Cook.
Even if some do, the money generated may help keep the kitchen fire burning in many homes till shops manage the pull the shutters up.
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