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.
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.