Coronavirus has led to the closure of many non-essential businesses in Morocco. Boris Kupriyanov, a bookstore owner, is now providing delivery to his customers. He says his business has outlasted the past two months despite the novel virus because of distribution. Also, since most customers purchase their books, they are motivated to carry on with the business.
“In many ways, this has become our salvation,” Kupriyanov, co-founder of Falanster, one of the country’s most famous independent bookshops, told AFP.
Russia is among the sharply hit countries. Statistically, it comes third after the US and Brazil with 396000 positive corona cases. On Monday, many small and medium scale business operators look forward to reviving their businesses, mainly because the Russian government will minimize the Draconian measures.
Not all businesses will resume at once.
In April, the Strategic Research Institute conducted surveillance in which research revealed that up to one-third of Russian companies are at risk of bankruptcy. Why? This is because the novel virus has negatively affected the demand for supplies.
Trade and service industries are leading when it comes to collapsed demand all over the globe.
While governing bodies have extended fair measures to improve the economy, small scale operators are still uncontended. They claim the free loans and postponed payment of taxes hasn’t improved their situation.
Vladimir Gimpelson from the School of Economics in Moscow states that the loans were of almost negligible help to companies nearly drowning in bankruptcy. In his recent report, he cautioned against increased poverty and inequality and refuted that deferrals were a solution.
Companies in Russia are forced to pay their employees despite their almost drowning financial status. This is so unfortunate because their government refused to provide support by withdrawing money from its emergency wealth fund, which equals assets worth$150billion.
Lack of adequate backing
“We have not felt any major support from the state,” said 47-year-old Kupriyanov, sporting a salt-and-pepper beard and a small silver ring in his left ear.
“This has been an ordeal, and unfortunately for many companies, it has become fatal,” he added.
The novel virus has left a significant blow, changing people’s lives immensely. This has affected both extensive- and small-scale operators e.g., Falanter, a treasure trove of intellectual literature. Before the pandemic, the business had thrived, with the shops located in the city of Moscow in Tverskaya. There was a good inflow of cash.
At the offset of March, When the government imposed stringent restrictions, the businesses stopped. However, later the staff began to offer delivery services.
Kupriyanov remains grateful that despite the pandemic, he maintained contact with his customers, which led to his business’s survival. Besides, through the 10 to 20 deliveries he made in a day, he was able to keep his mind off the crisis.
Five million jobless
Economists reveal that despite governments incorporating measures to prop the financial crises, a lot of people are still unemployed.
For four years, Russia has recorded the highest percentage of unemployment rates. The Russian statistics service revealed an increase from 4.7% to 5.8% in early April.
Igor Nikolayev, says the unemployment rate has tremendously risen. Such that up to five million Russians lack jobs.
The Bell, a self-dependent Russian language media group, says their government could have used more than $42 billion they spent on crisis management. However, the problem is they didn’t want to.
The Russian government limits its expenditure on crisis management as a caution on the financial drowns they experienced in 2008. Other reasons include saving as much for the 2024 presidential elections.
Needless, Kupriyanov plans to start a website and promote his business online. Although the uncertainties that come with the pandemic worry him. With the economic instability, he isn’t sure if Russians can still buy books.
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