Small business openings explode as economy recovers
As light at the tunnel’s end brightens, small businesses are reopening their doors at a healthy rate, according to a new report.
By the end of the first quarter of 2021, about 85% of businesses had fully reopened, welcoming more in-person activity and greater sales. By comparison, only about 57% of businesses had opened by February.
The positive news was put together by American Express, which surveyed small businesses of all sizes.
Lifted restrictions, vaccine rollouts and greater business capacity to hire all played a role in the bounce back of small business success.
The more than 100 million fully vaccinated Americans are moving the needle in multiple ways. In-person interaction is up. Small business owners are getting vaccinated at a higher rate. Communities are pulling together to stay healthy and support their local economies.
Between March and February, in-person interactions increased by 15%, doubling the rate between January and February. Coincidently, survey respondents (small business owners) who were vaccinated saw an 18% increase to their in-person sales.
In addition, new trends that became a necessity during the pandemic, like mobile ordering, are here to stay. Some 15% of survey respondents say they will shift their operations completely to online platforms. Unfortunately, a big chunk of small businesses may not recover. Yet, of the tens of thousands of businesses that have permanently closed, fewer than expected were small business.
Moving forward, supply chain could be an obstacle. Already, shortages across the nation impact all types of industry. But, with more positive signs than negative, small business owners are poised to continue their comeback.
Through your reinvention, perseverance and determination to succeed, you have been tested time and again. As you begin to hit your stride again, and expand your business, do not hesitate to reach out to us if you need any help. More than ever, we understand that business needs are always changing. From bookkeeping, training, payroll, tax preparation and business advisory and other services, we are here for you. Our main objective is to provide the necessary support so you can spend more time running your business.