Mary: This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program asks if small businesses will survive. Mike, small businesses hire almost 50% of all workers. It appears the virus-induced recession has hit them hard. Do we have any data indicating how hard, and if they will come back?
Mike: Summary Answer
- New survey is shocking
- 43% of small businesses have been temporarily closed
- Their employment has dropped 40%
- Many have little cash on hand, which means without help, many could go bankrupt
- In fact, over one-third of the businesses doubt they would open by the end of the year
- The initial funds in the payroll protection plan for small businesses was used in under two weeks
- The survey showed the fund needs to be replenished to assist small businesses
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.