Small businesses are the backbone of economic growth in communities around the world. With their unique offerings and personalized service, they provide value and a sense of connection to their customers. Whether it’s a local boutique or a family-owned restaurant, they tap into the heart of what makes a community special. From creating jobs to stimulating local economies, they are vital in shaping the communities we live in. As consumers, supporting these establishments allows us to give back to the neighborhoods we call home. They are more than just a place to shop or dine, they embody the spirit of community and are often the heartbeat of their neighborhoods.
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Data for today’s episode is provided by Mercator Advisory Group’s report –U.S. Small Businesses are Reeling as a Result of COVID-19
COVID-19 Sparks a Precipitous Deterioration in Small Business Attitude:
- Revenue growth, steadily projected by ~85% of owners 2016-2018, fell to 42% in 2020.
- Likewise, profitability growth fell from 74% in 2019 to 44% in 2020.
- Employment growth, steady around 68% from 2016-2019, fell to 39%.
- Worse yet – the proportion of companies predicting a decline in profitability and revenue increased SEVEN TIMES!
- In 2019, 6% of predicted profitability declines, compared to 35% in 2020.
- In 2019, 8% of owners predicted employment declines, compared to 29% in 2020
About Report
Mercator Advisory Group’s new Insight Summary Report, 2020 Small Business PaymentsInsights, COVID-19 and B2B Payments & Cards – The Result of the Pandemic, reveals that U.S. small businesses have a much less positive view of the future than in previous years. The report is the first of three from Mercator’s annual Small Business PaymentsInsights Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s online survey of 2,000 U.S. small businesses fielded in March and April 2020.
The report details the ways COVID-19 has changed small businesses and their outlook on the near-term future of their businesses. The report also provides insight into how small businesses bank and pay for goods and services, their banking relationships, how they view technology and their top business concerns.
“Small businesses have been hit hard by the pandemic. In many ways, more than their larger counterparts. Organizations that service small business have an opportunity to help these firms as they try to come out of the COVID crisis,” states the author of the report, Pete Reville, Director of Primary Data Services including Small Business PaymentsInsights Survey Series at Mercator Advisory Group.