Small Business Recovery Lagging According to Latest Survey
April 27, 2022
Growing inflation, persistent problems with the supply chain, higher rents, and an ongoing labor shortage are some of the factors negatively affecting the economic recovery of small businesses in the United States, according to the latest poll from small business referral network Alignable.
In a survey of more than 2,000 small business owners conducted from March 31 to April 24, 27% responded they have fully recovered from the pandemic. This figure is a 2% decline from last month’s poll and a 16% drop from December 2021.
Perhaps more troubling, 39% of small business owners surveyed report they have one month or less of cash reserves, compared to 49% in last months’ poll.
As cases of the BA.2 coronavirus variant spread across North America, 59% of small business owners are concerned this variant could further stall their recoveries. States in which businesses are most concerned about this variant include Massachusetts (79%), New York (76%), and Illinois (70%).
The survey also found:
- 92% of respondents say they’re worried escalating prices are hurting their recovery
- 44% say they’re earning 50% or less of the monthly revenues they generated prior to COVID-19
- 46% say they’re paying higher rent than 6 months ago
- 28% say they can’t afford to pay rent.
Not all the poll results were negative. Most (78%) of small businesses report being fully open, up 10% from last month’s poll.
