COVID-19 forced businesses to make significant changes in their operations, just to remain in business. Unfortunately, almost half are operating at a loss.
SCORE’s latest infographic examines the challenges of small business owners during the pandemic.
This infographic highlights the findings of part 3 of “The Megaphone Of Main Street: The Impact of Covid-19” data report.
SCORE conducted research for this data report via an online survey administered to its small business clients in August 2020 with roughly 3,500 responses.
COVID-19 has had a large impact on small business profitability.
How would you describe your business?
- Profitable and Growing
- End of 2019: 32%
- Now: 12.2%
- Profitable and Steady
- End of 2019: 18%
- Now: 12.1%
- Profitable but Contracting
- End of 2019: 5.1%
- Now: 9.2%
- Break even
- End of 2019: 19.6%
- Now: 17.7%
- Not Profitable
- End of 2019: 25.3%
- Now: 48.7%
They’ve been quick to adapt.
What changes have you made with your business? (check all that apply)
- Protective equipment (PPE) for workers: 43.1%
- Teleworking: 34%
- Revised employee policies and procedures: 29.4%
- New services to support community during the crisis: 20.4%
- Health screening of employees: 16.3%
- Special accommodations for at-risk employees or caregivers: 13.5%
- Staggered schedules so fewer employees are together: 13%
- Cross-training as backup in case workers are absent: 10.9%
- New services to support employees during the crisis: 8.5%
Many have had to reduce employees.
Since March 15, 2020, my company has done the following with respect to employees:
- No change: 38%
- Reduced employee hours/pay: 31%
- Furlough or temporary layoffs: 25%
- Hired new employees: 20%
- Permanent layoffs: 12%
- Replaced employees with contractors: 4%
They’re mostly optimistic.
Overall, how optimistic are you regarding the future growth of your business in the next 12 months?
- 22% Very optimistic
- 33% Somewhat optimistic
- 18% Neutral
- 17% Somewhat pessimistic
- 10% Very pessimistic
What can help?
What Government proposed programs would help most right now?
- Stimulus checks to individuals: 66%
- Extension of PPP loans: 30.8%
- Extension of enhanced unemployment benefits: 30.4%
- Extension of enhanced unemployment benefits: 23.8%
- Bonus for employees who start new jobs or are rehired: 20.6%
- Employee tax credit: 19.6%
50% replied that a business mentor or adviser or help right now.
That’s where SCORE can help. While you may be facing uncertainty, there is one thing you can be certain of: SCORE is here for you. Work with a SCORE mentor, and visit our Small Business Resilience Hub.
