The Economic Perspective: “Will Small Businesses Survive?”

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.