BOSTON—Despite expedited COVID vaccinations, eased restrictions in many states, and accelerated re-openings of several different industries across the U.S., Alignable’s June Revenue Poll indicates 35% of all small business owners are still at risk of closing permanently by the end of this summer.
But the same survey also found “one significant silver lining.”
Conducted among 3,772 small business owners in late May, Alignable said its June Revenue Poll results reflect cumulative negative effects of COVID, inflationary pressures and as increasing labor shortages. In fact, 55% of those polled said they're having trouble finding employees, up 5% from last month, the company said.
Beyond those challenges, several polltakers reported that they are still not fully open. Some say they've had to take a second job to keep their small business afloat long enough to see if it actually has a chance to recover after COVID subsides.
How Figures Were Determined
Alignable said its researchers calculated the percentage of small business owners who believe their businesses are in jeopardy by combining the answers of two questions in the latest poll:
- What percentage of revenue from June through August of 2020 do you expect to earn from June through August of 2021?
- What percentage of revenue from June through August of 2020 do you need to earn from June through August of 2021 to ensure that your business stays afloat until September?
“Based on the answers to the first question, only 22% of small business owners said they expected to make as much or more than they earned last summer. Considering that 40-50% of small businesses were not fully open last summer, that figure alone is cause for alarm,” the company said. “But looking at the answers to both questions simultaneously, it's abundantly clear that 35% of these small businesses might not survive until the end of August.”
Among those “frustrating insights,” Alignable said in releasing its analysis, is “one significant silver lining”: 33% of business owners say they have fully recovered to their pre-COVID monthly revenue numbers.
At-Risk Industries
According to Alignable, restaurant owners and retailers were feeling a bit better about their prospects a few weeks ago, as more restrictions have been lifted.
“However, they’ve also struggled with inflation and massive labor shortages as of late, and they’re now back among other industries that are very concerned about their prosperity this summer,” the analysis states. “Some are expressing worries about people who are not vaccinated, who might still be reluctant to come out and eat or shop.
Others are worried about mask policies and what they might need to do to help keep customers and employees safe, when a significant segment of the population remains unvaccinated, the company added.