Small business owners doing better than expected, report shows

A new report from TD Bank shows that Greater Philadelphia small businesses are doing better than expected given the challenges of the COVID-19 pandemic.

TD Bank’s 2021 Small Business Survey found that 46 percent of small business owners in the Greater Philadelphia area expected to grow their business revenue in 2021, while only 9 percent anticipate a decline. More than half (56 percent) anticipate expanding hours and/or operations, while only 5 percent anticipate closing permanently in the coming year.

“COVID-19 required small businesses to adapt to new business operations and incorporate new revenue-generating strategies nearly overnight,” said Jay DesMarteau, head of Commercial Distribution of TD Bank. “Entrepreneurs are incredibly resilient, though, and it is encouraging that they report a more positive outlook and do not anticipate losing their livelihood.”

TD polled 108 U.S. Small Business Owners (SBOs) in the Philly area with less than $5 million in annual revenue about how they fared during the pandemic as well as how they felt overall about their future.

Sixty-eight percent of the respondents said they anticipate their employee base to stay the same, while 18 percent anticipated that their number of employees would grow. Nearly two-thirds, or 62 percent, of respondents said government funding like Paycheck Protection Program and Economic Injury Disaster Loans were helpful, but more was needed to make an impact. But only 56 percent of Philadelphia-based businesses are confident in knowing how to grow or expand their business, compared to 63 percent nationally.

Despite their optimism, 42 percent of Philadelphia businesses identified the national economy as their top challenge in the year ahead, while 39 percent identified that top challenge as COVID-19 and health-based restrictions. Only 33 percent said it would be decreased revenue or sales.