Year over year, revenues of small businesses have plummeted over 50% in 2020 according to the new Small Business Financial Health Survey by Biz2Credit. What’s next?
Caught up by Covid
Many business owners are seriously impacted by Covid regulations. Revenue and payroll expenses have dropped off by over 50%. However, the savings in payroll money isn’t proportionate to the lost revenue. Everyone has suffered in some way.
During these stress filled times, our communities truly came together to support our healthcare workers and small business with meals, purchases and tips. However, many of the donors have now fallen away. Our communities are again facing challenging times with the restrictions still in place as well as the growing number of protests and riots across the country. But, there is hope! Employment levels are on the rise again.
Growth heated up over the summer
Between June and August, the U.S. saw record-breaking numbers in increases for payroll spending. Reuters reports that 9.3 million jobs have already been recovered this summer.
Initially, testimonials from our clients indicated hesitations about working 100% at home. Now, some are finding they truly don’t need the brick and mortar environments they used last year. Many people, thrown into the fire of working at home, have adapted quite well and may continue working from home even after the restrictions are lifted. This new trend could keep expenses down as revenues rise though the end of the year.