The major internal factor is fatigue and exhaustion of business owners and managers. This group had little left in their emotional tank when lockdown was implemented, simply because of the challenging trading/business conditions in the previous 12 months. Owners and managers are normally in control of their decision making, and past history normally gives them renewed confidence looking to the future. Unfortunately, we are now in different times. It is no wonder that business owners and managers are feeling overwhelmed with what to do, particularly when there is no short-term guarantee that the COVID-19 virus will be contained or eliminated. Owners and managers are left attempting to second, third and fourth guess all sorts of decision-making options, with a similar lack of confidence in the outcomes.
The second major factor is that no one can confidently make assumptions about potential sales activity and revenue forecasts, as this activity is contingent on both business and consumer confidence – and both are presently trending down until mid-2021. With more than 1.2 million people expected to be unemployed in Australia for example, consumer spending will fall. Businesses are also going to be hesitant about investing in labour or equipment, as both international and domestic markets could collapse in the short-term and their recovery is contingent on too many aspects that are presently unclear.
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