Small Businesses

Small business confidence is taking a hit over concerns about the delta variant, survey finds

  • 2 min Read
  • August 24, 2021

Author

Grace Townsley
Grace Townsley

As a professional copywriter in the finance and B2B space, Grace Townsley offers small business leaders big insights—one precisely chosen word at a time. Let's connect!

Table of Contents

Entrepreneurs are more cautious than ever as the delta variant of the coronavirus slows reopening efforts.

In March 2021, 67% of business owners were optimistic that the U.S. economy would bounce back by the end of this year. That report was published just one year after the COVID-19 surge first shuttered businesses across the country. But within the past five months, that figure has dropped sharply. As of August 2021, only 39% of business owners expect the economy to recover in the fourth quarter. 

This confidence decline comes shortly after businesses ramped up over the summer. As mask mandates were dropped and establishments across the country began to reopen, revenue swelled. Consumer spending increased so quickly over the summer that shortages on thousands of products and ingredients, from french fries to used cars, drove prices for many goods to all-time highs. A few months ago, the economy seemed to be running on all cylinders. Now, the latest round of delta closures has come as a shock to many. 

A larger number of business owners, up from 15% to 20%, also now believe the economy will continue to worsen before it improves. As these business owners are facing higher prices for the input goods they need, they are increasing their own prices to their customers. This impacts their projected sales and revenues for the remainder of the year as customers may struggle to continue purchasing.

Among small business owners, a recent Vistage survey revealed that 44% have already been impacted or expect to soon be affected by the increasing incidence of COVID-19 cases tied to the delta variant. Many of these small businesses have already survived a COVID-19 closure last year. Some are proactively reinstating their previous COVID-19 protection policies, like employee mask mandates and reducing occupancy, in an effort to prepare for anticipated local mandates. 

With Labor Day around the corner, after which falls the expected return-to-office day for hundreds of small businesses just hanging on across the country, we’ll soon see how wide the delta variant’s impact will be. 

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    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.

  • Quality and consistency

    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.

  • Scalability and Flexibility

    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.

Contact Us Today!

Tap into the latest insights from experts in your industry

Small Businesses

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact 

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact  In a world where every dollar must count,...

Read More
People Management & HR

2025 Employment Law Updates: What to Know

As we step into 2025, businesses across the country face several important updates in labor laws and employee benefits. Staying...

Read More
Startups

5 Signs Your Startup Needs an Outsourced CFO  

5 Signs Your Startup Needs an Outsourced CFO   Startups often operate with lean teams, but as they grow, financial complexity...

Read More
Leadership & Growth

CG Startups: How to Keep Costs Low While Scaling Operations 

Consumer Goods Startups: How to Keep Costs Low While Scaling Operations  Scaling a consumer goods startup requires a careful balancing...

Read More
Press Releases

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader 

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader  In a strategic move that...

Read More
Taxes

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant 

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant  For startups incorporated in Delaware, staying compliant is...

Read More
Taxes

Tax Planning for Startups: Preparing for Your First Tax Filing

Tax Planning for Startups: Preparing for Your First Tax Filing as a Growing Business  For many startups, the first major...

Read More
Taxes

Unlock Tax Savings with the R&D Tax Credit

As a startup, managing cash flow and minimizing expenses are critical to your business's survival and growth. One often-overlooked opportunity...

Read More
Accounting & Finance

1099 Compliance for Early Stage Startups

1099 Compliance for Early Stage Startups As your startup grows from seed funding to Series A, B, or C, you’ll...

Read More