The national organization SCORE today issued a report showing that two-thirds of small-business owners classified their businesses as unprofitable as the Covid-19 pandemic continues to affect the country.
The survey was conducted in August and brought in approximately 3,500 responses. The small businesses included in the survey represented many industries and geographical locations, while the small-business owners themselves represented diverse demographic backgrounds including age, gender and race/ethnicity.
The SCORE report said that only 33.5% of small-business owners described their business as profitable, compared with 55.1% of owners before the pandemic. The data compiled by SCORE indicated that 31% of owners were are cutting costs by reducing employee hours and pay and 25% still were temporarily laying off employees.
The SCORE data said that 66% of small-business owners felt that the most helpful form of government assistance right now would be a stimulus check. Enhanced unemployment benefits were said to be most important by just over 30% of owners while almost 31% said extending the Paycheck Protection Program would be the most helpful thing government could do.
Bridget Weston, CEO of SCORE, said, “Covid-19 forced businesses to make significant changes in their operations, just to remain in business. Data shows that 70.8% of small business owners have had to change their operations to include things like personal protective equipment, new safety protocols, and telework since March 2020. SCORE understands that change isn’t always easy but SCORE mentors are here to help at every step of the way.”
There was an optimistic note in the data SCORE gathered. More than half of all business owners, 55.2%, said they feel somewhat or very optimistic about growth in the next 12 months. However, SCORE also reported that half of the businesses responding said they could use help right now from a business mentor or adviser.
SCORE has about 10,000 volunteers who provide free mentoring, workshops and educational business services in more than 1,500 communities nationwide.
