April 20, 2020
By: Caity Witucki
Contributing Editor, Main Street Monday
Main Street Monday – 54% of Small Businesses Expect to be Closed by the End of the Week
According to a study conducted by MetLife and the U.S. Chamber of Commerce, one in four (24%) small businesses have already shut down temporarily as a result of COVID-19. This week, an additional 40% of small businesses expect to have to close due to cash-flow problems and an inability to operate in the current economic climate.
- A total of 54% of all small businesses report they are closed or expect to be closed this week.
- 43% of small business owners said that they have less than six months until a permanent shutdown is unavoidable.
- More than 8 in 10 small businesses are concerned about the impact of COVID-19 on their business with 58% percent saying that they are “very concerned.”
- Just 59% of small business owners feel comfortable with their current cash flow, compared to 80% in Q1.
- One in four (25%) report seeing an increase in local competition, an 11-point increase from Q1.
Even in the midst of this negativity, small businesses remain hopeful that they will get the help they need to outlive the virus. Looking toward the future, almost one in four (23%) small business owners reported to MetLife and the U.S. Chamber of Commerce that they still expect to hire new employees within the next year, and 57% feel positive about their business’ health.
Although almost half (46%) of small businesses believe it will take the U.S. economy six months to a year to recover, at least 54% anticipate the return of normal business prior to running out of operating funds.
U.S. Chamber of Commerce Special Report on Coronavirus and Small Business