Small business owners across the country still fear the worst of the pandemic is yet to come with small businesses in the Northeast feeling the most pessimistic about their own business health and economy, according to a recent poll conducted by the U.S. Chamber of Commerce and MetLife.
Specifically, 62 percent of U.S. small business owners still fear the impact of the pandemic while 74 percent say further government assistance is important for their ability to succeed in 2021. Comparatively, 87 percent of Northeastern small businesses are in support of additional federal relief funds.
The regional Small Business Index score for the Northeast is 52.4, the lowest for all four regions surveyed. This compares to the Midwest (53.4), the South is (53.1), and the West (52.7).
Nationally, the current Small Business Index score is 52.9, reflecting a slight increase of 2.6 points from 50.3 in the third quarter. However, the new score remains substantially below findings before the pandemic struck, which showed the Index at 71.7 in the first quarter of 2020, based on data collected before the full economic impact of the coronavirus set in.
“The impact of coronavirus continues to take a devastating toll on America’s small businesses,” said Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce.
Additionally, 50 percent of U.S. small businesses see their operations continuing for a year or less in the current business climate before having to permanently close.
“We must ensure small businesses across the country receive the assistance they need from the federal government,” Bradley said. “Not passing the bipartisan compromise for temporary and targeted relief risks the permanent loss of tens of thousands of small businesses, financial hardship for millions of Americans, and unnecessary delays in combatting the pandemic.”
Among the regional findings, 38 percent of small businesses in the Northeast reported confidence in their overall business health, 13 points down from last quarter, and 48 percent were comfortable with their cash flow, which was at least 12 points lower than the other U.S. regions.
Northeastern small businesses are also most pessimistic about a speedy return to normal for the small business climate with 65 percent believing it will take six months to a year to return to normal.
That said, the report found that small business owners in the Northeast also reported a more hopeful outlook than the other regions regarding the coming year. Thirty-seven percent of Northeastern small businesses reported an expected increase in investments for the next year, compared to 31 percent of small businesses nationwide planning to do the same.