The outbreak of the pandemic sent shockwaves throughout the small-business community. Stay-at-home orders and social distancing guidelines forced many businesses to close their doors permanently. Three-quarters of small businesses only have enough cash on hand to last two months or less, according to a survey of 5,800 small businesses by the Proceedings of the National Academy of Sciences, a scientific journal.
At the beginning of the pandemic, 163,735 local businesses shut their doors to comply with closure orders, and nearly 97,966 never reopened, according to Yelp’s Local Economic Impact Report. Professional services and sole proprietors, such as lawyers, real estate agents, architects and accountants, were able to weather the pandemic with little disruption. Restaurants and bars suffered the highest amount of closures, although retail shops also took a hit.
Many pivoted their business models to generate sales during closures. Restaurants started offering delivery, hair salons sold hair color kits, and retail stores implemented contactless, curbside pickup. To help small businesses survive the pandemic, the United States government launched the CARES Act. The Paycheck Protection Program infused small businesses with $659 billion to help them meet payroll costs, or pay interest on mortgages, rent and utilities.
The new administration in Washington, D.C. is taking strides to further help mom-and-pop business owners recover from 2020. President Joe Biden announced a plan to open up the PPP program again to businesses with fewer than 20 employees, which is approximately 98 percent of small businesses. The move was a bid to help sole proprietors, independent contractors and self-employed individuals receive more financial support.
The Entrepreneur’s Source® helps people discover their Income, Lifestyle, Wealth and Equity™ to discover financial freedom and self-sufficiency. Our Career Ownership Coaches™ use a personalized, educational approach to help people identify the best fit for their future. The Entrepreneur’s Source® helps people going through a career transition understand if they want to pursue another role in corporate America, start a business from scratch or try their hand at franchising.
If you are considering joining the mom-and-pop business community and are ready to open your mind to the possibilities of business ownership, contact The Entrepreneur’s Source® and discover how Career Ownership Coaching™ can help, and check out our guide book, “Your Career 2.0®: A Survival Guide for The Battered Career and Investor Syndrome®.”