A stunning new survey from Digitial.com has revealed a potentially apocalyptic reality for small businesses if new lockdowns are once again imposed in the name of fighting the spread of the coronavirus.
Per Digital.com’s Press Release:
SEATTLE, WA – Digital.com, a leading independent review website for small business online tools, products, and services, has published a recent survey report on how U.S. small businesses would fare if there are more shutdowns. The study generated responses from 1,250 small business owners and focused on how another round of shutdowns due to COVID-19 would affect them.
Research findings indicate 57% of small businesses will close permanently if there are more shutdowns due to the COVID-19 Delta variant. The situation is most dire for in-person businesses, with 67% facing permanent closure if there is another shutdown. Forty-six percent of online businesses are also at risk despite not having brick-and-mortar locations to shutter.
Many businesses have not recovered from previous shutdowns. Sixty-two percent of business owners who predict they’ll close permanently in the event of another shutdown say they’re “barely hanging on” after the financial devastation of the first shutdowns. In fact, 51% lost over half of their business due to previous shutdowns. Notably, 37% never received a PPP loan.
“Business owners need to be proactive and prepare now for more shutdowns, whether they happen or not,” advises small business expert Dennis Consorte. “Build a plan that shows exactly what surviving—and thriving through more lockdowns looks like for your specific company and industry.”
The graphics below are courtesy of Digital.com:
Some key findings from Digital.com:
–57% of small businesses will close permanently if there are more shutdowns due to the COVID-19 Delta variant
–Businesses that operate only in-person are at greatest risk with 67% predicting permanent closure if there are more shutdowns
–46% of online businesses and 57% of hybrid businesses are at risk of closure if there are more shutdowns
–Nearly 4 in 10 businesses that are in financial trouble didn’t receive a Paycheck Protection Program (PPP) loan
–For businesses that aren’t in danger of closing, another shutdown could mean staff layoffs and bankruptcy
A new round of lockdowns would be devastating for the small business community, who have already borne the brunt of the economic pain from the first wave of mask mandates and forced closures.
You can read the entire survey HERE.