February 8, 2021 A large share of small businesses in the District continue to feel the negative effects of COVID-19. In the first quarter, small- and medium-sized firms shed more than 15% of their employees year over year, only some of which recovered through June according to stats from ADP, a payroll processing firm. By the third quarter, the Census Bureau’s weekly Small Business Pulse Survey reported that three-quarters of small businesses nationally had felt negative impacts from the pandemic. The hardest-hit states in the District continue to be those with a high reliance on energy and tourism (such as Alaska and Hawaii) and those with more extensive COVID-19 restrictions and mandates (such as California and Washington). Unsurprisingly, the following sectors have reported the highest percentage of negative effects due to COVID-19: educational services, accommodation/ food service, health care, arts/entertainment, and other services such as spas, salons, and repair shop
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As businesses continue applying for the second round of federal Paycheck Protection Program loans, the Columbus Urban League is working with Black-owned businesses to make sure they get equal access.
Multiple studies, polls and news organizations have highlighted disparities in access to PPP loans, which were rolled out last spring as part of the federal government s first major coronavirus stimulus measures.
The U.S. Census Bureau s Small Business Pulse Survey last spring found just 12% of Black and Hispanic businesses owners had received the aid they’d requested from the Small Business Administration. That’s compared to the national average of 38%.
Retail Giants Racked Up Big Profits in 2020 While Pandemic Ravaged Small Businesses
Retailing giants racked up huge profits in 2020, driven by a surge in online sales, while many small businesses struggled amid COVID-19 closures and shoppers leery about venturing into brick-and-mortar establishments.
Amazon’s third-quarter earnings report for this year, the most recent available, notes an operating cash flow of $55.3 billion for the 12 months prior to Sept. 30, up from $35.3 billion for the same period in 2019. Net sales were $260.5 billion for the three quarters ending Sept. 30, 2020, compared to $193.1 billion for the same period last year. Net income, a measure of profit, for the three quarters ending Sept. 30, 2020, was $14.1 billion, compared to $8.3 billion for the same period in 2019, a 70 percent increase.
Where Small Business Sentiment Is More Positive for 2021
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The Census Bureau’s Small Business Pulse Survey shows that during the first week of December 2020, business expectations were depressed nationwide. While less than 2% of small businesses have closed during COVID-19, 52.9% of small businesses nationally expect they won’t return to normal levels of operation for at least six months or ever.
Though that outlook may seem a bit bleak, business sentiment remains stronger in some places compared to others. In this study, SmartAsset used data published in the Small Business Pulse Survey to determine the metro areas where small business sentiment is more positive heading into 2021. We compared the 50 largest U.S. metro areas across four metrics: percentage of small businesses that are operating at normal levels, percentage of small businesses that do not expect a return to normal levels of operations within six months or ever, percentage of small businesses looking to hire
The U.S. Census Bureau’s Small Business Pulse Survey grouped New Mexico, Nevada and New York as states where business owners feel most affected by the pandemic.