New research released by SHRM (Society for Human Resource Management) warns the state of small business could go from bad to worse, as 52 percent expect to be out of business within six months. The survey examining the impact of COVID-19 identifies significant, widespread economic pain—such as layoffs, furloughs, and lost revenue—that needs to be treated as public and private sector leaders move to reopen the economy.
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“You can’t sugarcoat that reality. But this research can help us map it out and change it together because the findings include more than just how small business is hurting. It also provides business and policy decision-makers critical feedback from small businesses about state and federal support.”
The survey of U.S. small business owners found:
- A majority (52 percent) expect to be out of business within six months;
- 54 percent have laid off employees while 22 percent have furloughed employees;
- 62 percent report a general decrease in revenue while 12 percent report a general increase;
- Of those small businesses reporting decreased revenue, 47 percent report losses of 10-30 percent, 41 percent report losses exceeding 30 percent, and 13 percent report a total loss of revenue.
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“SHRM has tracked COVID-19’s impact on work, workers, and the workplace for months,” said SHRM President and CEO, Johnny C. Taylor, Jr., SHRM-SCP, “but these might be the most alarming findings to date. Small business is truly the backbone of our economy. So, when half say they’re worried about being wiped out, let’s remember: We’re talking about roughly 14 million businesses.”
“You can’t sugarcoat that reality. But this research can help us map it out and change it together because the findings include more than just how small business is hurting. It also provides business and policy decision-makers critical feedback from small businesses about state and federal support.”
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