Small business health improves but majority see long path to normal
April 13, 2021
Most small businesses see their own business health as good despite seeing a worsening economy according to the latest MetLife & U.S. Chamber of Commerce Small Business Index. A majority also see the distribution of coronavirus vaccines as a positive step for the business climate, but see six months to a year before the business climate returns to normal.
Most small businesses see their own business health as good despite seeing a worsening economy according to the latest MetLife & U.S. Chamber of Commerce Small Business Index. A majority also see the distribution of coronavirus vaccines as a positive step for the business climate, but see six months to a year before the business climate returns to normal.
View of national economy declines.
A majority (59%) rate the overall health of the U.S. economy as poor, bringing views down to those seen last summer (58% saw the economy as poor in August). In the Q4 2020 survey [October-early November], 50% saw the national economy as poor.
Views of local economies go down.
A growing number of small businesses rate their local economy’s health as poor, up 11 points from 32% in Q4 2020 to 43% now.
Hiring expectations tick up.
32% of small businesses plan to increase hiring over the next year, up five points this quarter (27% planned to increase staff in Q4 2020). Meanwhile, 14% plan to decrease headcount (same as last quarter). Just 5% planned a decrease in Q1 2020.
Most small businesses are focused on employee mental health.
70% of small businesses say they are concerned about employees’ mental health and a majority (60%) say their business is actively addressing employee mental health as a priority now.
Most still concerned about virus’s impact.
Three-quarters of small businesses remain concerned about the virus’s impact on their business (75% in Q4 2020 vs. 76% this quarter). 76% are concerned about their business’s finances (75% in Q4 2020).
Majority say it will take at least six months to return to normal.
Fifty-nine percent of small businesses this quarter predict it will take six months to a year to get back to normal. In Q4 2020, 56% said the same.
Minority-owned businesses more concerned about impact of pandemic.
86% of minority-owned small businesses are concerned about the impact of the pandemic on their business’s future (versus 72% of non-minority-owned small businesses who are concerned).
Almost half of businesses say they can operate indefinitely.
45% of small businesses say they can operate indefinitely without shutting down in the current environment, up five points from last quarter, 17 points from July, and 22 points from late April 2020.
Half of small businesses plan to require staff vaccinations.
Around half (52%) of small businesses are likely to require employee vaccinations, but 20% say they are not at all likely to do so. Owners said their top reason for requiring the vaccine is because they want staff to be healthy.
Retailers concerned about the future and morale.
Across sectors, retailers are most likely to be concerned about their business’s future (80%, up eight points from Q4 2020) and employee morale (76%, up eight points from Q4 2020).