The Spanish flu had a direct effect on the GDP, and it served as a perfect benchmark to anticipate the outcomes and implications of COVID-19 on the economy. Multiple waves of layoffs, permanent business closures, social unrest, and the virus's extended duration had devastating effects on the economy. Government funding in the form of PPP (Paycheck Protection Program), CARES (Coronavirus Aid Relief and Economic Security Act), and state-funded grants for small businesses are just a few examples of reliefs injected into the economy to help small businesses. However, these initiatives had little effect in helping the financially fragile small businesses. The purpose of this paper is to discuss the effects of COVID-19 on micro-businesses in the service industry and provide innovative industry practices and ideas that have helped micro-businesses remain open during the pandemic. This paper aims to promote innovative knowledge and practices for managers to implement during the pandemic to keep the business open and operational. This quantitative research included almost 5562 micro-businesses surveyed between May 1st  and August 30th, 2020, along with extensive relevant literature research in this field. The main question aimed to be answered: have innovative processes been successful in helping micro-businesses stay operational and open during the pandemic. The six dimensions of innovation of Hertog, Den, and de Jong (2010) were utilized to define innovative processes and procedures that micro-businesses can implement. Data findings in this research indicate that micro-businesses need to implement out of the box innovative thinking for providing their services to customers to stay operational and avoid permanent closure.