May 10, 2021
Main Street Monday – California Small Business Owners Remain Optimistic
“California small business owners were hit especially hard and adapted to complex restrictions for longer periods of time than those in other states,” says Todd Hollander, Head of Small Business Banking at Union Bank. “But despite the challenges, many small businesses remained resilient and optimistic for the future.”
According to the Union Bank’s most recent Small Business Mindshift Survey, 6 out of 10 California small business owners report that they currently feel optimistic. The most widely cited source for this optimism was continued COVID-19 vaccine distribution, as 68% of respondents said they believe it will help their businesses.
Here are some of the other key findings from Union Bank’s Mid-Year Mindshift 2021 Survey:
- California small business owners invested an average of $28,000 into their businesses in order to operate within government guidelines and remain open during COVID-19.
- In particular, small business owners invested in personal protective equipment (58%), cleaning and sanitization services (54%), marketing and advertising (45%) and e-commerce (41%).
- Small businesses in the restaurant and hospitality sectors spent substantially more, investing an average of $74,000 on cleaning and sanitization services (94%), delivery services (87%), personal protective equipment (85%), and updated signage (82%).
- California small business owners received the most financial support from the government (36%), personal savings (17%), and from friends and family (14%).
- More women business owners said they felt powerless during the pandemic, with 64 percent saying they felt they had no control over the situation (versus 54% for men). They also reported higher median revenue losses: 50 percent revenue loss for women-owned businesses versus 35 percent for men.
- Small businesses report feeling more supported by their local community (41%) during the pandemic than by the federal government (31%).
Click here to read the full Mid-Year Mindshift 2021 Survey.