PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Alignable Survey: Small Businesses Concerned About Surviving the Summer

By at 9 June, 2021, 10:28 am

by RAYMOND J. KEATING –

Alignable, an online referral network for small businesses, provides regular polling on matters of importance to and about small business. And some results from the most recent survey are worth highlighting.

While conditions are pointed in a far better direction than has been the case since the pandemic hit, Alignable calculated, based on its June Revenue Poll, that “35% of all small business owners are still at risk of closing permanently by the end of this summer.” The following chart from Alignable breaks the estimates down by industry.

It was noted that the results “reflect cumulative negative effects of COVID, inflationary pressures including the rising prices of gas, supplies and employees, as well as increasing labor shortages. In fact, 55% of those polled said they’re having trouble finding employees, up 5% from last month.”

Among other key challenges:

● “57% of those polled said they have only achieved half or less of their pre-COVID monthly revenue levels.”

● “And 48% have only seen 50% or fewer of their customers return.”

However, a silver lining was highlighted:

● “33% of business owners in this poll say they have fully recovered to their pre-COVID monthly revenue numbers.”

Vaccinations and relaxing of pandemic restrictions are critical and most welcome, of course. At the same time, much economic damage has been wrought, especially on small businesses. The return to normalcy and growth is not a simple case of snapping back. It has been and promises to continue to be an uneven, often difficult process on several fronts.

Perhaps most critical from a public policy standpoint is to incentivize the entrepreneurship and private investment that will drive recovery and growth. That means Congress must reject the Biden agenda of increased taxes, more regulation and a vast expansion in government spending, and replace that with substantive and permanent tax and regulatory relief, and reining in government spending that is merely draining resources from the private sector.

President Biden has presented an agenda, which overwhelmingly is about increased costs on entrepreneurship, business and investment. Those are the last things this economy – and small businesses – need.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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