Economics - General

COVID-19 impact on small businesses: October 2020 Update

Results from a survey titled “Coronavirus Impact and Recovery of the Small Businesses Economy“, which has collected responses from over 520,000 business owners in the US and Canada. Some general positive trends, but still over 20% of small business owners have concerns of their financial reserves running out and nearly 20% are concerned that the COVID-19 could cause the government to close businesses again.

More specifics by industry:

  • Bars. Total consumer spending at local bars is down 35% from the prior year and 36% of all local bars are closed.
  • Retail. Total consumer spending at local retail shops is up 5% but 16% of all local shops are closed.
  • Health and beauty. With more people working from home, consumer spending in this sector is down 39% YOY, with 25% of all local health and beauty businesses closed.
  • Arts and Entertainment. Cultural attractions have been hit hard with consumer spending down 74% year over year. Further, 63% of all local arts & entertainment businesses are closed.

In short, despite some positive trends, COVID-19 has had a huge negative financial impact on many small businesses.

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