NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Lien De Cuyper, Burcu Kucukkeles & Raphael Reuben

The onset and spread of COVID-19 have left few people, if any, unaffected. Governments the world over have been repeatedly tested and stretched. They have set new rules and norms to try to re-establish confidence and give economies a chance of survival.

Less noticed and discussed, however, is the impact of the pandemic on entrepreneurial businesses. As sources of finance dry up, more than 40% of new ventures will fall into the so-called “red zone” with only enough cash for three months or less of normal operations.

Photo courtesy of Engin_Akyurt.