About 55 percent of those polled in Inc.'s first monthly Small-Business Survey said their top priority when reopening is securing the health and safety of employees. Meanwhile, another 90 percent said their business has seen a negative or significantly negative effect as a result of the coronavirus pandemic. Around 28 percent of those surveyed said they have already pivoted their businesses.
Roughly a third of those surveyed estimated they would need more than $150,000 in capital to weather the country's current conditions. A quarter of those surveyed said they'd need between $10,000 and $49,999 to withstand the ongoing effects of the crisis.
Despite the tough conditions, business owners like Laura Aidan, the founder of Prohibition Creamery in Austin, have delayed reopening--even as the state allowed restaurants to reopen on May 1. "We don't want to be closed, but [we] want to plan the best way to safely reopen," says Aidan, whose ice cream and cocktail bar has seen a 90 percent year-over-year revenue drop because of the coronavirus. Her shop closed its in-house service in mid-March but has offered take-out, curbside pickup, and delivery of its products.
She's postponing her return until she can establish new hygiene and safety protocols to better protect staff and customers. She also applied for a $55,000 forgivable loan through the Paycheck Protection Program. Her six-year-old company booked under $1 million in revenue in 2019, her best year yet, Aidan says.
Aidan participated in Inc.'s Small-Business Survey, which went out to subscribers of Inc.'s This Morning newsletter and registered feedback from 226 founders, CEOs, owners, and other company executives. The survey, which took place between April 28 and May 4, questioned how companies are coping with the pandemic, what measures they're implementing to stay afloat, and whether they've applied for government assistance.
Here are some other key findings from the survey:
- 87 percent of respondents said they applied for Covid-19 relief funding, such as the Paycheck Protection Program. Another 5 percent were in the process and 8 percent said they had not applied.
- 35 percent of respondents said they needed relief funding within one month to endure the pandemic. Another 16 percent said they needed it immediately.
- 53 percent said they haven't had to lay off employees because of the coronavirus.
- 64 percent of respondents said their companies have participated in some form of philanthropy related to the coronavirus.