Survey Shows Small Businesses Concerned About Possible Reclosures And Financial Woes
Growing COVID-19 numbers in many states have left small businesses across the country on edge about their financial situation and the possibility of re-closing. Among the small businesses surveyed by referral network Alignable in its July 2020 “Road To Recovery” report, the fear of having to close again due to the pandemic has grown from 17 percent in May to 24 percent in late June—and is higher in states that re-opened the quickest. Owners have similar concerns about customers being too afraid to return. Their No. 1 worry, however, is running out of money.
Among those small-business owners surveyed on their greatest re-opening concerns, 26 percent cited running out of money, ahead of the 24 percent who are worried about re-closing. Among the U.S. companies surveyed, the research found that 43 percent of Paycheck Protection Program loan recipients say that they’re almost out of money. And 69 percent of small businesses surveyed that did not get federal funding expect their cash reserves to be gone by the end of July. Among businesses operating in June, 49 percent of owners say they have less than half the revenue they had prior to the pandemic.
Alignable has tracked the impact the coronavirus has had on small businesses in the U.S. In June, the impact level dropped to 68 percent from 74 percent one month earlier. Those saying the coronavirus has had a “significant financial impact” on their business dropped eight points to 59 percent. However, using data from Florida and Texas businesses as indicators for “Fast-to-Reopen States,” the study found that businesses in these states reported higher levels of impact in June, with 73 percent overall impact and significant financial impact slightly higher than the national average at 60 percent.
June did bring a jump in businesses re-opening. Alignable reports that 88 percent of small businesses are open, up from 68 percent in May. And half (50 percent) of those businesses are fully open, compared to 40 percent one month ago. Additionally, 77 percent of small business staff are back on the payroll, a 19-percent increase from May.
For more details from Alignable’s research, click here.