More than half (57%) of small business owners say their financial position is the same as or better than the pre-pandemic period, according to a new survey by Capital One. The survey findings highlight the optimism among small businesses in the wake of an unprecedented economic instability brought about by COVID-19.
Majority of Small Businesses Same or Better than Before COVID
Some 62% of business owners say they are confident their business will eventually return to pre-pandemic conditions. This is in addition to the 87% of small businesses predicting they will still be in business by spring 2021.
Further findings in the survey indicate optimism across the board, these include:
- Four out of five (79%) businesses that have received the Paycheck Protection Program (PPP) believe the assistance they’ve received during the pandemic will help them stay in business for the long term.
- 82% of business owners have been able to keep the same or increase their number of employees throughout the pandemic.
- 58% of businesses have cited not needing financial support as the primary reason they didn’t seek funds from outside sources in the last six months.
- Less than 20% of business owners report having had to cut back on their services or offerings as a result of the pandemic.
- Only 2% of business owners report having permanently closed since the onset of the pandemic. Food services, construction, and technology businesses are the hardest hit.
Despite the optimism, challenges, however, remain. Due to the economic disruptions since March, many small businesses have adapted their operations to not only remain in business. A case in point here is 83% of millennials are far more likely to have spent money attempting to adapt their business to keep it running during the pandemic compared to baby boomers (51%).
Some 61% of businesses too, admit to needing more practical advice and tools to weather the storm. These include support by way of training or consulting. They believe this would help them address different areas of running a business since the pandemic. A further 43% of businesses would be willing to accept donations to help address their business’s financial needs.