Most of them won’t be able to pay the bills and rent
More than a third of small and medium-sized businesses in the U.S. won’t re-open after the quarantine, and more than a half won’t re-hire the employees they had to lay off because of the pandemic. Facebook has conducted new research based on 86 000 employers, owners, and managers of small and mid-sized businesses.
Around one-third of the small and middle-sized businesses in the U.S. are currently not operating. Most of them closed their doors at the beginning of March. The service industry is suffering the most – 40% of hotels, café, and restaurant employees told that their businesses now don’t bring any revenue.
How Have Businesses Changed
Because of the pandemic, businesses had to change, reads the research. 37% of companies reported using digital payment tools, 23% – digital ordering tools, and 16% – service delivery tools. 40% of businesses continue using digital ads to promote their products or services.
According to the study, 65% of employers now don’t get any additional payments, bonuses, or insurance discounts.
Where Will The Costs For Re-Opening Come From
Facebook says a bit more than 40% of business owners will use their own money to re-establish them. On the other hand, almost the same number of business owners don’t know where to get the money. Half of the surveyed said they don’t want to borrow money since they are afraid they won’t be able to repay.
Currently, most business owners worry about how they will pay the bills and allocate salaries to their employees. Third of the owners, whose businesses won’t be able to re-open after the pandemic, said they wouldn’t be able to pay rent or bills.
Situation In Ukraine
According to the survey conducted by the European Business Association at the beginning of April, one in five small businesses in Ukraine may not re-open quarantine in Ukraine. 77% of small Ukrainian companies reported they are losing 75% of their revenue.