!The Impact of the Mega Crisis on Lebanese Businesses: A Drastic Change

Leon C. Megginson says, “It is not the strongest or the most intelligent who will survive, but those who can best manage change.” But what about surviving in the middle of a dreadful situation? In a place where its citizens are struggling to live, you can not thrive. According to the Spring 2021 Lebanon Economic Monitor, Lebanon ranked the top 10 in the financial and economic crisis. In fact, the economic crisis, financial crisis, and the COVID 19 pandemic has influenced many businesses in Lebanon negatively.

Additionally, the big explosion of Beirut port that caused the death of many innocent people and it destroyed many businesses. Indeed, it was challenging for many businesses to cope with this disaster. For instance, the demand for goods is reduced and the cost of materials increases. The increase of business debt is a catastrophic consequence. Businesses have also accrued expenses for the explosion-related harm to their building infrastructure. Then, how can they grow? Who is responsible for this massive loss? Maha Katta mentioned, “Enterprises feel that they are trapped in a vicious cycle, within the multiple and interlinked crises affecting the country,” This implies how devastating are the effects of Beirut Blast on businesses.

The scenario continues and it is an unstoppable journey of destruction of the Lebanese economy until a miracle interferes and saves our future. The value of the currency (Lebanese Lira) is deteriorating day after day and this directly influences businesses. Nothing could be more tragic than living in your homeland and losing a large part of your business that took many years to be developed.

The economic inflation has increased and many Lebanese people are facing poverty. To make matters worse, the tragedy of unemployment increases. The dilemma is still escalating and Lebanon is struggling between life and death to wake up from the prolonged shock that hit it! In this realm, some companies and institutions in Lebanon closed. Studies have shown that “Of the total 363 sampled small-scale enterprises in Lebanon, 51% temporarily stopped operations, and of 1,987 interviewed workers, 84% were laid off and 94% saw their wages largely reduced, leading to a surge of unemployment which saw a drastic increase” (UNICEF, 2022).

The Lebanese status quo is challenging for businesses. That’s why others decided to open branches in other countries in the gulf region to prosper. For example, a Barbar restaurant opened in the UAE. Likewise, the most popular ones in Dubai like Malak Al Tawouk, Al Abdallah restaurants and many others. Besides, there are restaurants that recently opened in the MENA region such as Em Sherif. As a result, many businesses found other ways to stay at the top in the market. In other words, they decided to grow in other countries in the world. They look for new opportunities and progress.

All in all, we are drawing in the swamp of loss and hopelessness. As long as the crisis increases, its aftermath penetrates every sector in the country. The sad stories of the Lebanese people are episodes of a continuous catastrophe of killing their passion to live and grow their business in Lebanon. The economic conditions destroyed everything within us. We are financially, mentally, physically, socially, and psychologically ill. We are fragmented and our dreams are shattered! Who can bear that?