New Survey Reveals that 52 Percent of Small Business Expect to Go Out of Business Within 6 Months
The Michael Snyder of the End of the American Dream reported that small businesses will be on the ropes in the upcoming months.
With some states rolling out reopening plans, there is some optimism in the air for a potential economic rebound.
However, Snyder doesn’t believe the recovery will be so quick.
He noted the following:
The good news is that the lockdowns are starting to end, but the bad news is that many small business owners are facing a “new normal” in which their monthly revenues will be down by 30, 40 or 50 percent (or more). All of a sudden many small businesses that were once barely profitable have been transformed into businesses that are bleeding a lot of cash each month, and many of them simply are not going to make it.
According to a Bloomberg survey, 52 percent of U.S. small business owners “expect to be out of business within six months.”
The data Snyder cites is coming from a new survey the Society for Human Resource Management conducted which discovered that 52% of small business owners expect to be closing their doors within six months.
“SHRM has tracked Covid-19’s impact on work, workers, and the workplace for months,” stated SHRM Chief Executive Officer Johnny C. Taylor, Jr., “but these might be the most alarming findings to date. Small business is truly the backbone of our economy. So, when half say they’re worried about being wiped out, let’s remember: We’re talking about roughly 14 million businesses.”
Many small businesses normally operate under razor thin margins.
A pandemic and the subsequent government lock-downs have thrown everything into disarray.
People’s livelihoods have been ruined as witnessed by a Dallas salon owner who was harassed by municipal officials for the shocking crime of trying to earn a living by keeping her business open.
Elected officials will have to get their act together lest they want more Americans to suffer.
Unrest will inevitably follow if politicians don’t put forward a sober reopening plan.