Amid COVID-19, revenues of small businesses in the US dropped 52%

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 10, 2020, 5:59 AM UTC

Biz2Credit’s survey of 300 small businesses found that small companies on average spent $62,599 on payrolls in 2020, compared to $137,126 last year.

According to the report, small businesses reported a 52% drop in revenues during the pandemic. The average revenue dipped to $193, 865 during Q2 2020, compared to $405,030 in 2019. With up to 90% reduction in revenues, Limited Liability Companies were the most impacted by the pandemic.

However, the restaurant industry also experienced a revenue drop of 72% between April and June. Of those polled, 60% of businesses that were closed for some part of 2020 saw revenue declines of 87%.

For small businesses to recover, they must invest nearly $29,230 in PPEs and renovations as per the report. While support for businesses was limited, 20% were offered a deferred payment option by landlords or mortgage companies.

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