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Small Businesses in the U.S. Estimate the COVID-19 Shutdowns Has Cost Them on Average Over $200K Per Company

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Almost half (48%) feel strongly that the U.S. government handled the situation poorly, but at the same time, almost half (49%) appear optimistic with regards to the future of their businesses

New York, NY, June 30, 2020 -- In a survey released today by Fiverr, the company that is changing how the world works together, it is estimated that the COVID-19 pandemic has cost small businesses in the United States over $200K per company on average -- and almost half (49%) expect their earnings to decrease in the coming months, even as parts of the country begin to open back up.

The study - conducted amongst 1,000 small business owners and decision makers in 23 cities across the U.S. and done in partnership with Censuswide - found that many (31%) blame the U.S. government and feel that early preparation from the administration would have helped them better prepare for the crisis. Just 7.5% of small businesses expect revenue to increase - and no U.S. city expects a mean revenue increase overall.

It also found that many small businesses feel they have been let down by the PPP (Paycheck Protection Program) bureaucracy. Over one in ten (11%) said that they had applied for the loan, but had yet to receive the funds from it and another almost one in five (17%) said that they had tried to apply but the process proved too complicated to complete.

New York appears to be the city fairing the best with regards to the PPP loans - 30% of small businesses said that they applied and have already received their funds and another 38% said they didn't apply for the program because they didn't feel they needed the loan.

Regional Insight
The survey also offers insight into the different ways top cities across the U.S. are coping with the crisis, including:
- Chicago is by far the worst hit city - with an average $681,817 lost per business, more than three times the national average. Half (50%) of small business owners there felt quite or completely unprepared for the crisis.

- San Francisco feels most let down with regards to the U.S. government's handling of the COVID-19 pandemic - as 62% say it's been handled badly overall. Additionally, SF is suffering the most from lockdown with regards to productivity, as 30% of small businesses reported decreased productivity.

- Philadelphia based small businesses have struggled the most with acquiring a PPP loan - as one in ten (11%) have applied for a loan, but have not yet received it and over a quarter (26%) have tried to apply but ultimately gave up due to complications.

- Los Angeles small businesses are expecting the worse outcome when this is all over, as they anticipate a 22% revenue decrease - equivalent to $376,842 per company.

Remote Work and Productivity
It is clear that U.S. small businesses are struggling, frustrated and feel let down by the leaders of this country. But that said, they're pushing on as best they can and almost half (49%) appear optimistic with regards to the future of their businesses.

Part of their optimism could be because of their newfound belief in the opportunities remote work can offer - as 33% of small businesses said that they are more likely to encourage working from home and 21% plan on having greater flexibility post-lock down.

It's also possible to rank all the cities in terms of how well they've adapted to remote working conditions - by ordering them according to the percentage of respondents who claimed productivity has increased or stayed the same as a result of remote working.

The full list is as follows:
City Proportion of respondents who've noticed an increase in or the same level of productivity
Washington D.C. 73%
Atlanta 61%
Boston 61%
Los Angeles 61%
Philadelphia 58%
Miami 56%
New York 55%
San Francisco 53%
Phoenix 52%
Chicago 45%

While many believe in the power of remote work and the flexibility it affords, there are also some downsides that come with it. Almost half of small business owners (49%) noted that staying focused while working from home is difficult and two in five (40%) are struggling to concentrate with their families and kids during lockdown.

Looking Ahead
The survey data gives a number of hints about what the future might hold for U.S. small businesses - including the revealing statistic that 33% of small business owners plan to increase flexible and remote working post-Covid.

Many are hoping to fight through the economic downturn, with 37% investing in digital and traditional marketing in response to the crisis.

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