Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
While small businesses must handle day-to-day tasks—like managing...
Benefits administration can be a game-changer for small...
May 17, 2021
Small businesses are a backbone of the U.S. economy. They are estimated to employ almost 50% of the country’s workforce and to create roughly 66% of all net new jobs, according to the U.S. Small Business Administration. In addition, small businesses account for 44% of the country’s economic activity.
In a February 2021 survey that probed how small business owners navigated the pandemic, small-business insurance provider Huckleberry found that while barriers varied from industry to industry, the most significant roadblock across the board was a lack of cash. Some 37% of small business proprietors cited insufficient cash flow as their No. 1 business challenge during the pandemic.
Another 29% cited lack of demand as one the 2020’s biggest challenges for their business. And 26% had a difficult time complying with pandemic safety rules, while 20% said hiring was a major business challenge and 17% said the same for marketing.
Unsurprisingly, businesses that entail routine face-to-face interaction were the worst hit. According to Huckleberry data, active insurance policies for the daycare sector plummeted by 43%, while policies for retail and fitness businesses dropped by more than 20%. Both restaurants and barber shops showed a 10% decline in active insurance policies.
Industries that did the best were those relating to home improvement and maintenance. Plumbing and HVAC business reflected a 50% increase in active insurance policies. Landscaping services, carpentry firms and flooring providers were close behind, according to Huckleberry figures.
Business predicated on personal interaction moved online when feasible. For example, retailers switched to online sales, while gyms moved to remote exercise classes. Businesses that could stay open relied on safety protocols, but restaurants unable to offer in-person dining implemented curbside pickup.
Meanwhile, 70% of the survey respondents said they cut their budgets. Only 34% of small businesses said they were able to take advantage of government funds or loans. Among business that pared their spending, 61% accomplished this through cut to marketing and advertising. Some 41% trimmed their payroll, 30% trimmed rent or mortgage expenses, and 20% opted to go without business insurance coverage, Huckleberry stated.
About half of the survey respondents said they were still profitable at the close of 2020. Some 29% of respondents said they had broken even for the year. About 1 in 5 respondents operated their firms at a loss in 2020.
Half of the survey respondents said they were optimistic about their business’ outlook this year. Meanwhile, 29% said they were pessimistic, and 21% described their outlook as neutral. More than 75% reported that they do not have a contingency plan in the event of new COVID-19 restrictions.
Almost 1 in 3 small business proprietors said they would require staff to get the COVID-19 vaccine. Twenty percent said they were undecided. Over half indicated they would not require their employees to get the vaccine.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...
Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...
Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...
Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...
In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...
The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...
Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...
Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...
Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...