In light of rapidly increasing COVID-19 caseloads across the country, some regions are pushing back reopening or even increasing restrictions to manage the massive spread of the virus. As part of our support for small businesses, we conducted a survey among small business Skip users. Thousands responded, and what we found was that businesses are still in dire need of help. Here are the important takeaways for you to understand.
About Our Skip Small Business Listing Survey
As part of our SupportCovidRecovery.com initiative, we've been working hard to understand small business needs, help them apply for loans and grants, and offer other ways of helping them reopen and recover. We had thousands of respondents to our quick small business survey.
46% of Small Businesses Are in "Survival Mode"
Nearly 50% of businesses surveyed said that they were in “survival mode” and a third said they are somewhat or very likely to shut down their businesses.
Loans Aren't Enough
Although over half (54%) of businesses surveyed received either a PPP or EIDL loan, or both, for most the money was insufficient. 26% of those that received loans are still at risk of closing down.
Even Those That Aren't At Risk of Closure Are Struggling
Of those that are stable, only 8% were fully open, and 45% have significantly reduced customers. With small businesses employing nearly half of American workers, this is deeply troubling. So who’s hit the hardest, and what can you do to help?
The Crisis Isn’t Hitting All Businesses Equally
While all small businesses are feeling the impact of the pandemic, some have been able to remain open throughout the crisis while others lost months of revenue. Most service industry businesses, such as hairstyling, catering or childcare, have been shut down for months, and proprietors aren’t sure they can come back. Service industry businesses usually operate at 10% margins or less, partially because people are less likely to utilize services when the economy is in a recession.
As expected, our data shows that small businesses in service industries, events, travel and marketing are at the highest risk of closure due to lack of revenue. Those that are open at all have to space out client meetings in order to sanitize their spaces and make sure everyone stays safe, and when businesses are selling time instead of products, those moments lost can be critical. One respondent, a window cleaning service, wrote, "Most of my customers have put their service on hold indefinitely. So they've not yet canceled service, they just don't know how long it will be before they can resume service again."
The virus’ ripple impacts are devastating multiple sectors of the US economy.
What You Can Do to Help
Even with government support through the EIDL and PPP program, US small businesses are on the edge of collapse. While more COVID-19 aid might be on the way, it's still uncertain what that will be. In the meantime, small businesses are relying on support from their communities.
As discouraging as this data appears, there are ways you can support small businesses near you. If it is safe and possible for you to visit them or purchase their products and services online, we encourage you to do so—we have found that small businesses are deeply committed to safety. You can see the safety and reopening protocols for small businesses near you with our business listings.
But even if supporting businesses financially isn’t an option yet, getting to know businesses near you, learning about what they are going through and raising awareness is a great way to help. With our listings, you can like businesses near you and show your support, so they know you’re thinking of them.
😊 Support small businesses near you.