
Ask HN: Why small businesses and some companies shut down? - saadalem
They don&#x27;t have cash reserve or what ? I don&#x27;t understand
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Finnucane
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.

