Preserving Small Businesses: Small-Business Owners Speak About Surviving the COVID-19 Pandemic

Abstract

mall businesses are important to the U.S. economy. 1 In 2017 (the latest year for which data are available), enterprises with fewer than 20 employees accounted for 16.4 percent of U.S. total employment and 12.2 percent of total payrolls. 2 Enterprises with fewer than 500 employees accounted for 47.0 percent of employment and 40.3 percent of payrolls.Less easily quantified but equally important is the role that small businesses play in creating and sustaining the character and vitality of local communities. Both physically and socially, small businesses constitute an essential part of the "streetscape" of their communities.Our principal aim in this Perspective is to provide a preliminary understanding of the challenges that these businesses are facing as a result of the global coronavirus disease 2019 (COVID-19) pandemic. Using this understanding, we provide a preliminary description of what kinds of policies will help them to survive. 3 Existence can be precarious for small businesses, even in the best of times. For example, in 2016 (the latest year for which these data are available) the "exit

From Challenges to Creativity: Enhancing SMEs’ Resilience in the Context of COVID-19

“…SMEs are facing a resource crunch for covering fixed operating costs such as rent and mortgage payments, utilities, and insurance [40]. Questions were raised with respect to potential existential dispute if these costs were not met due to past and ongoing restrictions for business operations.…”

The COVID-19 Effect in Mexican SMEs

“…The challenges resulting from the COVID-19 are not disappearing quickly, and government policies for assisting small businesses and managing a return to some version of typical activities continue [17]. A global effort is needed for the production and distribution of medical equipment, test kits, and respirators.…”

“…The demand for non-essential consumer goods is falling, even without supply restrictions [3]. Even if small manufacturers close their businesses temporarily, they continue to face payments such as rent and bank loans, in addition to debts for supplies they had ordered before the pandemic [17]. Despite these difficulties, supply chains are not broken.…”

“…A temporary interruption can mean the closure of the business. It is not surprising that the restrictions imposed by governments to combat the spread of the pandemic have become a risk for many of them [17]. The effect of the coronavirus on the business activities of SMEs around the world is tremendous.…”

“…They are having an impact on the supply chain and need to move forward in these times of crisis [20]. The most common concern in SMEs we heard was a need for assistance in covering fixed operating costs: rent and mortgage payments, but also utilities and insurance [17]. Micro and small companies are less productive than large companies and have few financial resources to face this crisis.…”