New Survey Data: Amid Rising Delta Variant, Small Businesses Ring The Alarm On Pandemic Recovery
14 Setembro 2021 - 11:54AM
Business Wire
Amid National Small Business Week, only 38% of
small business owners believe the United States is heading in the
right direction – a 29% decline since June
Inflationary Pressures, Labor Shortage, Mental
Health Struggles Among Top Issues Facing Small Businesses;
Black-owned Small Businesses Continue Facing Steep Challenges
Relative to their Peers
Small business owners across America are ringing the alarm about
the direction the country is headed and are struggling to manage
inflationary pressures, navigate the labor shortage and confront
mental health struggles, according to a new survey released today
from Goldman Sachs 10,000 Small Businesses Voices. For Black-owned
small businesses, the challenges are even more steep. The data
comes during the Small Business Administration’s National Small
Business Week, and after it was revealed last week that small
businesses are low on cash reserves and concerned about access to
capital.
Only 38% of respondents in the new nationwide survey believe the
country is moving in the right direction, representing a 29%
decline from June. Seventy-four percent of small business owners
expressed concern about the impact of rising COVID-19 infection
rates on their businesses.
Inflationary pressures continue to rattle business operations.
Eighty-six percent said they are concerned about inflation, with
84% stating they have seen an increase in their operating costs. In
a sign that inflation may still be building, 81% of respondents
said inflationary pressures have increased since June and 74% said
their business’ financial health has been negatively impacted by
inflation.
“Just weeks ago, small business owners hoped that a return to
normalcy would help jumpstart our recovery, boost sales, increase
labor market participation and relieve the stress and mental health
pressures we faced during the pandemic,” said Jessica
Johnson-Cope, Chair of Goldman Sachs 10,000 Small Businesses Voices
National Leadership Council and owner of Johnson Security Bureau in
The Bronx, NY. “This data clearly shows we’re on the wrong
track with the current surge in COVID-19 cases making it harder for
small businesses already struggling to weather inflationary
pressures, hire and fill fundamental roles and access childcare and
mental health resources that will put them on the road to
recovery.”
Across the country, small business owners are working to
overcome challenges associated with hiring, mental health and
childcare as COVID-19 cases continue to rise.
- Seventy-three percent of small business owners are currently
hiring full-time or part-time employees, yet 87% of those hiring
are finding it difficult to recruit qualified candidates for open
positions;
- Eighty percent say difficulty in hiring is impacting their
bottom line;
- Forty-nine percent say they or their employees have faced
mental health-related issues as a result of COVID-19, and only 19% say they can afford to provide their
employees with sufficient mental health resources;
- Forty-four percent say a return for kids to remote learning
would make it difficult to retain employees; and
- Sixty-four percent say their workforce challenges have worsened
since pre-COVID-19.
An initial dataset released last week alarmingly revealed that
44% of small businesses have less than three months of cash
reserves in case of an emergency or another shutdown. Just 31% said
they were very confident they could access capital if they needed
it.
Black-owned small businesses continue facing more treacherous
recovery challenges relative to their peers. Only 20% of
Black-owned small businesses are very confident they would be able
to access capital if it was needed, a mark that is 11% below their
peers. Fifty-one percent of Black-owned businesses have less than
three months of cash reserves in case of an emergency or another
COVID shutdown – a figure 7% greater than their peers. Fifty-four
percent of Black-owned small businesses expect to need to take out
a loan or line of credit for their business in the fall or winter,
whereas only 29% of non-Black businesses owners shared the same
expected need.
Black-owned small businesses have also been slower to recover to
pre-pandemic employment levels. Prior to the pandemic, the overall
universe’s median number of employees was 11, whereas the median
employee number is 10 today among the entire universe. However,
among Black-owned small businesses, the pre-pandemic median number
of employees was nine, whereas the median employee count at
Black-owned businesses today is six.
“Small businesses used their entrepreneurial ingenuity to stay
afloat over the past 18 months, but they are nearing a breaking
point,” said Joe Wall, National Director of Goldman Sachs 10,000
Small Businesses Voices. “With cash reserves running
dangerously low for many small businesses and operating challenges
seemingly around every corner, additional relief for small
businesses must be a priority for policymakers at the federal,
state and local levels.”
Ninety-two percent of small business owners say it is important
for the Biden Administration to prioritize policies that level the
playing field for small businesses. Two potential relief efforts
garnered significant support from respondents. Ninety-six percent
of small business owners said state and local governments should
prioritize federal COVID-19 relief funds to provide small
businesses access to capital. Eighty-three percent support
President Joe Biden’s July 9th Executive Order directing the
federal government to promote greater procurement competition and
increase opportunities for small businesses.
The data is a result of a survey of 1,145 Goldman Sachs 10,000
Small Businesses participants conducted by Babson College and David
Binder Research from Aug. 30 - Sept. 1. The survey included small
business owners from 48 states, 55% of whom were women. For more
information on the survey and its results, please visit
gs.com/covid-slowing-the-road-to-recovery.
ABOUT 10,000 SMALL BUSINESSES VOICES
Goldman Sachs 10,000 Small Businesses Voices is an initiative
for program participants to organize and advocate for policies that
matter to them. It builds on Goldman Sachs 10,000 Small Businesses,
which over the past decade has provided access to education,
capital, and support services to more than 10,000 small business
owners across all 50 states, Puerto Rico, and Washington D.C. Learn
more at www.gs.com/10ksb-voices.
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Abbey Collins abbey.collins@gs.com Tel: +1 212-902-5400
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