- COVID-19 has closed thousands of small businesses across the United States, some partially and others permanently.
- New data from Opportunity Insights reveals that geographically there is a significant difference in the proportion of closed US SMEs.
- The most affected areas include San Francisco, New Orleans and Honolulu.
- However, in some cities, SMEs are operating at levels approaching pre-pandemic levels.
SMEs are the backbone of the US economy and employ almost half of the private sector workforce.
Unfortunately, the blockade and telecommuting measures brought about by COVID-19 have disproportionately affected SMEs, especially in the areas of leisure and hospitality.
As metro level data from Opportunity insight Geography points out that it makes a big difference in the proportion of US SMEs that have flipped open signs. Some cities are reopening as usual, while others still have the majority of SMEs closed.
In the United States as a whole, data show that nearly a quarter of all small businesses remain closed. Of course, the situation on the ground depends on the location. The status of cities across the country, sorted by percentage of SMEs closed as of September 2020, is as follows:
In New Orleans and the Bay Area, SME closure rates are still nearly double the national median.
SMEs in the leisure and hospitality sector have been hit particularly hard, with 37% not reporting transaction data.
In some cities, SMEs are operating at levels approaching pre-pandemic levels.
Of the cities covered by the dataset, Omaha had the highest SME opening rates.
In cities with large tech sectors such as San Francisco and Austin, COVID-19 has shaken economic patterns as the entire enterprise switched to working from home almost overnight. This is bad news for the constellations of restaurants and services that cater to those workers.
Similarly, in cities such as Honolulu and New Orleans, where the economy is built around serving visitors, vacations and meetings are suspended indefinitely, resulting in very high SME closure rates. It is getting higher.
As the pandemic prolongs, many of these temporary closures are likely to become permanent. Yelp Recently, 61% of restaurants marked closed on the platform were reported to be completely closed. Similarly, companies in the retail and nightlife categories have seen more than half of their closures become permanent.
Complete closure of a business is a decisive factor, but it does not convey the big picture. Even the companies that continue to operate often have far below their pre-pandemic rates.
Once again, businesses in the leisure and hospitality sector have been hit hardest, with revenues halving since early 2020.
At this time, it is difficult to predict when, or even if, economic activity will occur. Full recoveryTravel and some internal work will eventually recover, while the SME situation will continue to face major turmoil.
This map shows where US small businesses have closed
Source link This map shows where US small businesses have closed