When will the new "new normal" come for small businesses?
Alignable report finds that despite concerns about three current problems, small-business owners express optimism about recovering.
Small-business owners are cautiously optimistic that the worst of the pandemic may be behind them.
“While it’s still too soon to declare victory, if we’re able to continue on this current trajectory of declining impacts of COVID-on business, we’re hopeful we’ll see a genuine start to the recovering in the coming months,” said Eric Groves, cofounder of Alignable, a small-business referral network.
The company shared the results of its Road to Recovery Report for May. Among the key findings:
Coronavirus impact on business.
- 38 percent of owners said it’s really having an impact their business.
- 24 percent said the impact is on the decline.
- 14 percent said it is not impacting their business.
- 11 percent said it’s having on positive effect on business.
- 10 percent said it’s starting to have an impact.
- 3 percent said the impact is over.
“Last month, we wondered if the massive positive shift in optimism with regard to the COVID crisis was real,” Groves said. “This month, we received some encouraging news: The impact results across the board indicate that a significant percentage of impacted businesses are starting to feel the negative impact decline.
“Whether or not you believe the storm is over, the turbulence of the current situation facing small businesses is well-reflected in a variety of polltakers’ comments, which illustrate a great disparity between those who are succeeding and others now confronted with additional inflationary problems.”
Inflation and recovery.
- 80 percent of owners are paying more for supplies and inventory compared to pre-pandemic pricing.
- 59 percent are having greater difficulty acquiring supplies and inventory.
- 52 percent have kept prices unchanged or lowered them.
- Half are finding it more difficult to hire.
- 34 percent are operating with a month or less in cash
“Adding the scarcity of people seeking employment and elevated hiring costs to this equation, it’s not difficult to see that inflationary pressures are confronting many small business owners everywhere they turn,” he said.
Reopening status and business closures.
- 60 percent of businesses are fully reopened.
- Fewer than 10 percent are closed, either temporarily or for good.
The vast majority of small-business owners still anticipate that the new normal will arrive after summer.
Recovery concerns. “The increased cost of supplies has jumped into the top spot as small-business owners’ leading concern,” Groves said. “Also on the rise is fear that customers are afraid to return to their businesses. However, as COVID case levels continue to decline and overall vaccination levels increase, we see concerns of reclosures and cash reserves running out subside.“
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