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Ask HN: Why small businesses and some companies shut down?

1 pointsby saadalemabout 5 years ago
They don't have cash reserve or what ? I don't understand

1 comment

Finnucaneabout 5 years ago
Many small businesses do operate on thin margins and have little cash reserves. Most restaurants, for instance, won't be able to pay their rent and salaries with no customers in the dining room. Heck, many large and very profitable businesses don't have a lot of cash reserve either, because of shareholder demands. It goes into stock buybacks, dividends, and other investments. They're not holding anything for bad times. Which means, when this is over, they'll get eaten by the ones that do.