Coronavirus is a large family of viruses that are known to cause illness ranging from common cold to severe health problem such as Middle East Respiratory Syndrome (MERS) and severe acute respiratory syndrome (SARS). It was identified in 2019 in Wuhan, China. This is a new virus that has never been previously identified in humans. 

As the coronavirus crisis spread around the world, countries are using lockdown as one of the main isolation strategies to control its transmission. Blockage occurs in different types of emergency situations and disrupts normal life. Indian Prime Minister Narendra Modi announced National lockdown from 7am to 9 pm on 22 March, 2020. Every country is doing its best to control the spread of the virus. The partial or total lockdown is the main strategy implemented by the government to control the pandemic for people’s safety. 

The year 2019-2021 is undeniably a year that all of us hope to forget. The covid-19 pandemic spread rapidly around the world making daily life difficult. The first case of Covid-19 positive in Mizoram was found in the month of March, 2020. The Government is forced to impose restrictions on the movement of people; companies must shut down and shops and retail outlets have to close down to stop the spread of the virus. For small businesses, this is a major blow and many businesses have not recovered from it. Those who have survived did survive by adjusting their working methods. 

There are numbers of small businesses operating in and around Lawngtlai, and their impact on the local economy cannot be ignored. Small business management shows that businesses operating in local communities are the foundation of the entire Mizoram economy. They not only provide consumers with valuable products and services, but also promote the local green economy through taxation. They also generate employment and create financial development for the society.

The importance of small business growth in the local economy may be one of the most striking in the employment data. Small businesses have created new job opportunities and also represent more than 30 per cent of the local communities that operate their own businesses. With this income, they can financially care for the family and pay for the education of their children. These owners are also actively involved in supporting community civic organizations and giving back to charities in their area. In addition, it also provides access to personal services for men and women who do not have the required qualification qualifications for government services and do not participate in politics. This paper focused on how the pandemic lockdown affected smaller businesses in precise of the problems and how it has affected on the financial stand-up of the smaller business populations. Small businesses have suffered in terms of income due to lockdown implemented by the Government for safety of the people. This has been very problematic as they have no other options but to go online although this has not always been possible for everyone. The Covid-19 outbreak has vastly altered the socio-economic make up of human society. The business sector has been severely affected, although the level of importance is not the same within the state. The nature of business sector response has been varied for a number of reasons by a number of persons. Based on preliminary research, this work attempts to understand the impact of Lockdown due to Covid-19 pandemic on businesses in Lawngtlai town. The survey covers business owners within the town of 97 respondents. Through statistical analysis, the study found the impact of Covid-19 in the business field and the adaptive strategic measures in the area to deal with this problem. The results of this study showed that due to the lack/shortage of working hours, the pandemic has seriously affected the income of the business community. Lockdown impact on small business tends to be vulnerable during an economic crisis, partly because they have fewer resources with which to adapt to a changing context.               

Geographical Setting of the Study Area

Lawngtlai town is situated in the southern part of the state of Mizoram. Geographically, it is located at the coordinates of 22.532°N and 92.899°E. Lawngtlai town was established by Haihmunga Hlawncheu, a Lai chief in the year 1880. It was named ‘Lawngtlai’, as one day the Chief seized a boat that was drifting down Kaladan River, and hence, it has been named Lawngtlai. It has been derived from two words, lawng means boat, and tlai means seized. The geographical area of the town is 15.8 sq. kms. It is 296 km from the state capital, Aizawl and is connected with regular service of HMV and LMV. Majority of the people belong to Lai group. Nowadays most Lai speaks Mizo as their first language. Lawngtlai town is the headquarters of Lawngtlai district and Lai Autonomous District Council. The Lai Autonomous District Council was constituted on the 29th April, 1972 under the Sixth Schedule to the Constitution of India. As per 2011 Census, there are 6172 households with a population of 20,830, out of which 10659 are males and 10171 are females. Lawngtlai town has sex ratio of 954 females per 1000 males. The work participation rate in the town is 32 percent (6697). The working population consists of 44 percent male and 20 percent female, where 36 percent of total male populations are main (full time) workers and 8 percent are marginal (part time) workers. For women, 15 per cent of total female populations are main workers and 5 per cent are marginal workers. Economically, Lawngtlai town is the most developed town in the district. The economic activities of the people are based on the secondary and its allied activities. However, shifting cultivation is the most common economic activity in the whole District [1].

Figure 1: The Study Area of Lawngtlai Town

Present scenario of Covid 19 case in Lawngtlai Town

Regionally, Lawngtlai area is one of the areas most affected by this virus, because the area is inhabited by different tribes belonging to different religions and communities. When the second wave of the Covid-19 outbreak hit the state of Mizoram, the registration of the number of positive cases showed an increase in Lawngtlai regions due to some communities from Lawngtlai town who had visited some neighboring villages bordering Bangladesh. This group of people after coming back from Bihu festivals were infected by the virus, and spread within the town. And when the second wave hit Lawngtlai District, the first positive case was registered on April 9, 2021. From April 9, 2021 to June 1, 2021, 491 people were infected with Covid-19, of which 255 were male and 236 were female. Of the 491 positive patients, 201 have been discharged (108 male and 93 female), and 290 are still in Covid-19 spotlight, of which 147 were male and 143 were female. The Table 1 shows the status of Covid-19 cases in the region. 

Table 1: Shows Covid-19 Positive Case Registered in Lawngtlai Town and The Entire Region

Source: CMO, District Hospital Lawngtlai.

The Table 1 clearly indicates that the positive rate of Covid-19 (37.23%) in Lawngtlai town is the highest in the district as compared to other areas within the district. This is because the town of Lawngtlai act as the main market for the entire district, and people from the nearby towns flock to the market to meet their needs. Many of the people who have visited Lawngtlai failed to comply with the SOP issued by the government authorities, and resulted in the spread the virus [2].

Fortunately, although the entire region is one of the most affected areas, so far, the number of deaths caused by Covid-19 has not been recorded. The discharge rate is also high, public gratitude goes to the medical team and the selfless volunteers at the local for their dedication. 

The State government authorities, with the help and support of medical teams and self-less volunteers working at the district and local level took safety measures to contain the spread of Covid-19 (Figure 2). 

Figure 2: Showing Covid -19 Positive in Percentage

The safety measures initiated during the second wave of covid-19 are:

• With the help of DLTF (District Level Task Force), the lockdown and curfew reform measures proposed by the State Government have been strictly implemented.

• DLTF has established a village level working group as VLTF (Village Level Task Force) in each village, responsible for implementing the guidelines and rectification work.

• Medical teams and front-line staff, including the Police Department, are also involved in strictly maintaining appropriate measures.

• As of April21, 2021, the State government announced the blockade measures. In order to have an atmosphere of peace during this period, Lawngtlai town will carry out a detailed descriptions of the mission as regional headquarters. Even on national legal holidays, Saturdays and Sundays, this administrative duty (Executive Duty) can successfully implement the restrictions

• In order to prevent the spread of Covid-19 in College Veng, when certain people are found positive, the selected parts have been declared as curfew zone and curfew was implemented from May21, 2021 according to CrPC Sec.144 will continue until May 31, 2021 for faster contact tracing

• From the Chief Minister’s Relief Fund received, each VLTF in Lawngtlai town was given Rs10, 000 in order to help those in need.

Impact of Lockdown on Businesses

A survey was conducted by circulating questionnaires among small business owners and point of sales owners using Google sheets and survey monkey applications. The income statement is compiled in three-time frames, such as 2019, 2020 and 2021, until June. The sales rate has dropped significantly because small business owners have to adjust their business hours, resulting in a decrease in sales (Figure 3). 

Figure 3: Income Status of Small Businesses 

According to the survey report, 68.75 per cent of those surveyed believed that the lockdown has a great financial impact on their business and they believe that if it continues in the future, it may cause them to close their business. No business is operating as normal as before the pandemic and their business hours has to be adjusted regularly during the lockdown period. Similarly, 31.25 per cent of those surveyed hope and believe that even this lockdown could affect their business, but one day they will be able to withstand the Covid-19 storm. However, most of the respondents experienced a decrease in sales volume and were unable to recover in a short period of time [3].

Table 2: Showing The Income Status of Small Businesses.

Source: primary data collected (Field Survey) 

The decrease in output of small businesses in the area has direct impact in terms of loss of livelihoods and income for those who engaged in this sector. The disruption of supply chain has created shortages in supply of raw materials and the available goods mobility restrictions creates financial stress to those who engaged. Agriculturists were also impacted by lockdown as they have difficulty in obtaining ready seeds. Lockdown has impacted farmers as well as they were not able to procure seeds needed for their farm. Small businesses contribute a large percentage of the family income. Unfortunately, small businesses are the worst hit by the pandemic lockdown. The impact of lockdown accruing to the economy of small businesses sector is huge and decrease in the income level of people will surely have a huge impact on financial situation of the people. More than 60 per cent of them are feeling helpless and believes that this may put them out of business. This is going to significantly impact on their financial condition which in turn will result in difficulty in paying different bills including their children education fees (Figure 4 and 5). 

Table 3: Level of Impact

(Source: Primary data collected)

Figure 4: Percentage Impact 

Figure 5: Percentage Low, Medium and High 

Strategic Measurement to Deal with Lockdown Problems

Due to the low resource turnover, rate and general uncertainty of the global financial environment, it has become a challenge for more businesses to maintain financial operations during the lockdown period.

Unfortunately, the impact on start-up and small businesses can be much more severe, because it has less cash holdings and lower profits to cope with the sharp decline. The domino effect of this lockdown will have a significant impact on the economy of Mizoram. All business units are affected, resulting in reduced revenue due to discontinuation or reduction of products and services. 

Therefore, during these testing periods, start-up entrepreneurs will have to adapt to a new set of rules and pay attention to the following aspects to mitigate risks and to survive the slowdown due to the impact of Covid-19 lockdown. 

Business Model Feasibility Test

Review the evolution of the market on a weekly basis, it is imperative to re-examine the business model and reassess the company’s position with regard to your income and expenditure assumptions. It is also important time to monitor current financial metrics and cash flow. Always note what your lead is. Businesses need to assess the impact on new sales, collections, credit cycles and potentially bad inventory [4].

Planning Policies for The Next 3months/9 Months/ 18 Months

Since, it is difficult to estimate how long this pandemic will last, it is important to be prepared for all scenarios. If we treat it as a three-month issue, it will be helpful to immediately stop variable expenses like hiring, marketing, travelling, etc. However, if the crisis last for 9 months to a year, entrepreneurs will have to reconfigure their business strategies to reduce variable expenses and re-negotiate fixed expenses such as rent, salaries, equipment lease payments, etc. focusing only on the key of the elements of survival. It may be a good idea to modify the sales strategy for online sales and face to face sales. Consider whether you need to reduce or expand your marketing costs [5]. If the impact of the pandemic lasts 18 months or more, serious reconsideration is required. Business must start, communicate and act with compassion. The following are few tips to keep in touch and float during lockdown:

• Communicate transparently with your customers: We are all together, so the ideal way is to be transparent with your customers and understand what your business is going through. As long as communication is transparent, customers can sympathize with companies facing crisis. Communicate with customers to understand their views on the products and solutions you offer

• Maintain a healthy relationship with the contracting party: It is understandable that it can be difficult to pay the provider during the lockdown period. However, if there are delays in payment, it will be useful to give your supplier and owner sufficientnotice. In this way, they are also prepared, and there is no bitterness in this already difficult period

• Communication with stakeholders: Consult experts to plan the right way to communicate with stakeholders and more importantly with customers and employees. Have an honest conversation about this situation and its impact on your business. In this difficult time, it is important to come together and help each other in any way that we can stay safe and healthy.

The impact of the small businesses survey gathered evidence on how the pandemic affected on the levels of income and financial situation. Analysis of this data, collected during 21^st April– 2^ndJune 2021, shows that the pandemic has strongly affected 62.5% of respondents. Nearly two-thirds of small business owner reported that the crisis strongly affected their business operations. One-fifth of small businesses owner said that they may need shutting down permanently if lockdown is continuing in the coming future. In Lawngtlai, two out of three businesses said they had been strongly affected by COVID-19, mostly involving reduced on sales (75 per cent). In accommodation and food services, retail and wholesaler 75% of surveyed respondent said partial and total lockdowns strongly affected their business operations. Many of them that are not registered with state authorities are small and have little cash on hand to finance themselves when operations are shut down. The impact of lockdown on small business Survey found that around 47 per cent of respondents are more likely to say that the pandemic is pushing them towards bankruptcy.

People in the area are more susceptible to the pandemic than others because their health facilities and social safety nets are often weak, and it is difficult to mobilize the 
necessary resources to fight the pandemic. In addition, due to the large proportion of people working and participating in small businesses, the quarantine policy instigated by the State Government may have a greater economic impact on the population. 

1. “Andhra pradesh government bans spitting in public places.” The New Indian Express, 12 Apr. 2020. Accessed 13 Apr. 2020.

2. “Coronavirus in India: Economic task force yet to be formed, no decision on relief package.” Business Today, 20 Mar. 2020.

3. John, Mark. “How is the world dealing with lockdown? this poll has captured the public’s mood.” World Economic Forum, 6 May 2020. Accessed 11 May 2020.

4. “Economic cost of lockdown is nothing compared to people’s lives: PM Modi.” Business Standard, 14 Apr. 2020.

5. Vyas, Mahesh. “Unemployment rate touches 26%.” Centre for Monitoring Indian Economy, 21 Apr. 2020. Accessed 24 Apr. 2020.