Small business response to COVID-19

Optimistic. Seeking help. Ready to innovate.

Many small and medium-size business owners are hopeful about their ability to adapt and return to profitability, despite the complex challenges the COVID-19 outbreak has brought. To better understand the impact small businesses feel COVID-19 has had on their organizations and customers, Verizon Business commissioned a nationwide survey of 500 small and mid-size business (SMB) owners and decision makers. What SMBs need right now, the survey indicates, is access to the right financial and technology tools and resources to help them unlock new workplace innovations that can boost their business, even after the pandemic subsides.

Conducted by Morning Consult, the survey analyzed the responses from these owners and decision makers at businesses that have remained operational during the pandemic. 

View the full results

“These findings echo what we have been hearing from many of our customers: a feeling of optimism.”

TJ Fox, President of Verizon Business Markets.

A renewed confidence

The ongoing reality of owning and operating a small business is difficult in terms of financial stability, health and safety, and in getting the kind of support small businesses actually need. No matter the obstacles, small business owners express a resounding sense of resilience and optimism for a better future.

Nearly half (46%) of respondents

whose businesses have stayed open said that they think they will be able remain open for six months or longer if the pandemic continues in the same way.

Key stats

  • Respondents overwhelmingly said the coronavirus outbreak has had a negative impact on the financial security of their business (82%). Another 60% said it has had a negative impact on their own job security.
  • 78% of businesses surveyed experienced declining sales as a result of the outbreak. Many have reduced employees' hours (61%), or reduced wages of business leaders (45%).
  • At the same time, 24% have missed or withheld any payments of bills such as rent and utilities, and 48% said it’s unlikely they will need to resume operations with a smaller staff.
  • Overall, 81% of businesses expressed confidence in their plan to continue operations during the outbreak.

Small businesses value expertise and tangible assistance to help them weather the storm

While many businesses think peer businesses and consumers in their local communities are empathetic about the impact of the outbreak, 3 in 4 respondents say it feels like small and mid-sized businesses are being forgotten amid the coronavirus outbreak. To improve the situation, these businesses overwhelmingly want more practical advice and assets to help them survive and thrive. These include waived late fees from service providers, a list of available loan programs and how to apply, and resources dedicated to reviving small businesses.

 

64% of small businesses

wanted a resource hub dedicated to supporting and reviving small businesses once the pandemic subsides.

 

Key stats

  • Nearly three quarters (73%) of small businesses stated that they would need external help to offer new products and services to adapt to the changing consumer needs.
  • Small businesses listed financial (54%), IT (42%), e-commerce (42%), and HR (40%) as key areas of advice they could use.
  • 55% wanted the ability to apply for advertising grants to help promote their business digitally and socially.

Adapting to the new normal

As small and mid-size businesses forge into a new normal of managing remote employees, deciphering rules and regulations surrounding opening and venue capacity, and overcoming the overall downturn in the economy, they are also discovering innovative new ways to drive the bottom line. 

43% of small businesses

will expand their business through digital and related technology.

 

Key stats

  • Nearly a third of small businesses came up with new ways of operations and product innovation; 43% said they expect to expand through digital and related technology.
  • 67% report that sourcing PPE for employees has been a challenge during the pandemic. 
  • Post pandemic, 35% of small businesses plan to allow or encourage more employees to work remotely.

Related surveys

    About the survey
    To understand the needs and advice desired by small business customers amid COVID-19, Verizon commissioned this survey, which was conducted via online interviews April 24–26, 2020, among a national sample of 500 small to mid-size business owners and decision makers. For close to twenty years, Verizon has been helping small businesses with the insights, information, products, and solutions to grow and thrive. Results from the full survey have a margin of error of +/-4 percentage points. It focused on four regions (Northeast, Midwest, South, West) and seven key industries, all of which have been impacted by the pandemic:

    • Construction & Contracting

    • Entertainment & Recreation

    • Food & Beverage (Non-Restaurant)

    • Hospitality & Accommodation

    • Property & Real Estate

    • Retail

    • Restaurant & Bar