What’s Stopping Small Businesses From Growing?
By 2024, small businesses could add 2.3 trillion to global GDP growth. However, COVID-19 has struck small businesses hard, affecting 96 percent of small businesses, nearly 60 percent resorting to laying off a substantial number of employees and nearly 30 percent closing their doors. Minority-owned businesses have been especially affected, being at least 50 percent more likely to report a reduction in sales, employee layoffs, or permanent closure.
More than half of small business owners aren’t prepared to leave their businesses for a vacation and worry about staying afloat. Many small business owners control 75 percent of their sales and client management, and nearly the same amount takes responsibility for hiring and team performance.
As a result, over 80 percent of small businesses aren’t prepared to handle a huge new client, and nearly 80 percent aren’t prepared to get 10 new clients in a single week. Nearly all small businesses are not prepared to handle a sudden influx of leads. Although any of these would be a saving grace, the way COVID-19 left small business owners means they’re struggling to take advantage.
However, the future for small businesses appears bright, small businesses are drastically changing their workflows, and are focused on digital agency growth and rebuilding their business.