WASHINGTON, D.C. October 25, 2020 (Biz Republic) — COVID-19 has had a large impact on small business profitability, with only 33.5% of small business owners describing their business as profitable today, compared to 55.1% of small business owners before the pandemic, according to new survey data published by SCORE, mentors to America’s small businesses.
Data also suggests that small business owners are cutting costs by reducing employee hours and pay (31%) and temporarily laying off employees (25%). Small business owners have been quick to adapt to COVID-19, with 43.1% providing employees with personal protective equipment (PPE) and 34.4% implementing teleworking policies. Still, only 12.2% of small business owners report their business as profitable and growing today, compared to 32% of small business owners before the pandemic.
Small business owners agree that stimulus checks to individuals (66%), free advertising credits (52%) and small business mentorship (50%) would be the most helpful forms of assistance at this time. Bridget Weston, CEO, SCORE shares that, “COVID-19 forced businesses to make significant changes in their operations, just to remain in business.
Data shows that 70.8% of small business owners have had to change their operations to include things like personal protective equipment, new safety protocols, and telework since March 2020. SCORE understands that change isn’t always easy, but SCORE mentors are here to help at every step of the way.” Key findings of COVID-19’s impact on small businesses:
— Half of small businesses (48.7%) report operating at a loss today.
— Small business owners report that stimulus checks (66%), extension of PPP loans (30.8%) and extension of enhanced unemployment benefits (30.4%) would be the most helpful forms of government assistance.
— Optimism for future growth persists. More than half of all business owners (55.2%) feel somewhat or very optimistic about growth in the next 12 months.
Click here to access the full Megaphone of Main Street data report on the impact of COVID-19. Since 1964, SCORE has helped 11 million entrepreneurs to start or grow a business. SCORE’s 10,000 volunteers provide free mentoring, workshops and educational services to 1,500+ communities nationwide, creating 29,681 new businesses and 67,706 non-owner jobs in 2019 alone.