For the smallest businesses — those run by the self-employed or for personal income — the situation is worse.
More than half of them are no longer operating, according to the “State of Small Business Report”.
“The situation is worse for personal business (52 per cent of which report shutting down), hotels, cafes and restaurants (43 per cent) and services like wellness, grooming, fitness or other professional services (41 per cent),” said the report.
Of the businesses that report being closed, 71 per cent report having closed since March 1, 2020, 18 per cent closed in February and 4 per cent closed in January.
Many that remain in operation face two big challenges: cash and customers.
They are worried about where money is going to come from, and whether there is still demand for their goods and services
And even when looking to when things are better, less than half of owners and managers said they would rehire their former employees, showed the findings.
The findings are based on a survey of 86,000 owners, managers and workers in companies across the US with fewer than 500 employees.
“Still, business owners and managers are optimistic about their future. They’re resilient, finding new ways to reach their customers online, making adjustments to how and when they do business, and working hard to meet their family obligations at the same time,” said the report.
The survey was conducted in partnership with Small Business Roundtable, a coalition of leading small business and entrepreneurship organizations.