A third of small businesses say they won’t survive 3 months, coronavirus survey finds
Coronavirus is taking a toll on small businesses, and about one-third don’t expect to survive the next three months, survey results show.
If the current circumstances continue, 35% of owners say it would be tough to make it to July, according to figures released Wednesday.
Most owners say the coronavirus is making their businesses struggle, and 68% “think the government is not doing enough” to help them, according to the survey from the personal finance website WalletHub.
As COVID-19 spreads, the U.S. Small Business Administration is offering paycheck assistance, disaster loans and other relief.
“Health and government officials are working together to maintain the safety, security, and health of the American people,” the agency’s website said. “Small businesses are encouraged to do their part to keep their employees, customers, and themselves healthy.”
What could happen to small businesses?
About one-third of owners plan to apply for special loans through the federal government, according to a survey from Thryv and America’s Small Business Development Center. Nearly one-fifth have canceled financial plans, while about 40% have put them on hold or aren’t making changes, results show.
Still, 82% of business owners in the coronavirus survey say they are “extremely” worried, and a majority have seen less customer demand.
Some owners plan to cut employees’ hours or lay off workers, according to results from America’s Small Business Development Center and WalletHub.
Due to COVID-19, the majority of small business owners say they anticipate losing 10 to 30% of profits, and about 4% expect to close, a survey from the Society for Human Resource Management finds.
To help stop the spread of the disease, health officials recommend people avoid crowds. Restaurants, salons and other businesses have closed or scaled back services as a result.
Thirty-one percent of owners say their small businesses can completely run remotely, but another third told survey takers that remote functions are impossible for them, according to results the Society for Human Resource Management released Wednesday.
In late March, WalletHub weighed small businesses and other factors in its study called “State Economies Most Exposed to Coronavirus.” It ranked Louisiana on top, with Georgia earning a spot on the bottom of the list.
In its more recent survey findings, WalletHub says it collected online responses from more than 200 people who owned small businesses and made the sample “reflect U.S. demographics.”
The Society for Human Resource Management worked with Pure Spectrum to conduct its survey of 512 business owners from March 13-16, according to its website.
America’s Small Business Development Center says it surveyed representatives of more than 850 small businesses from March 20-23. The margin of error was 3.3%.
This story was originally published April 1, 2020 at 11:16 AM with the headline "A third of small businesses say they won’t survive 3 months, coronavirus survey finds."
