As COVID-19 Cases Rise and Restrictions Loom, Small Business Owners See Long Road to Recovery
SAN FRANCISCO--(BUSINESS WIRE)--With COVID-19 cases surging and a new wave of restrictions looming, challenges persist for small business owners as they continue to weather the pandemic according to data from the Q4 Wells Fargo/Gallup Small Business Index. While the index score rose 12 points for the second straight quarter, overall optimism levels remain just over half of what they were in late 2019.
For the third straight quarter, respondents most frequently ranked the loss of business or closings due to the impact of COVID-19 as their top concern. Attracting new business, worries about financial stability and reduced cash flow were the other top ranked concerns.
“With COVID-19 numbers hitting new high-water marks across many states as we enter the important holiday season, small businesses are facing another steep round of challenges,” said Steve Troutner, head of Small Business at Wells Fargo. “Helping small businesses keep their doors open, their employees at work, and meet their customers’ needs safely is a top priority for Wells Fargo and we are deploying a wide array of tools to do so including our Open for Business Fund which is investing approximately
Business owners see long road ahead for recovery
The Q4 survey highlighted that the journey to economic recovery for small businesses is not a short one. Almost half (
When asked about the timeline for economic recovery,
The pandemic has changed how many small businesses think about payment solutions
The pandemic has required many businesses to establish safer ways to engage with customers. Payments is no exception. The pandemic’s effects were particularly highlighted in the data showing that
“As we think about how to serve our small business customers amid the current COVID environment, it’s critical that we support them with new payment techniques which in turn allow them to operate safely and efficiently,” said Liz Ryan, executive vice president and interim head of Wells Fargo Merchant Services. “The data tells us that for a large number of business owners, both their current circumstances and their customer preferences are dictating a hygienic approach for payments. As we observe the current shift toward innovative solutions like contactless payments, the pandemic is accelerating the adoption of these capabilities as consumer buying behaviors and preferences change. We continue to operate with a customer-first mindset and focus our support on helping business owners not just survive but thrive.”
Despite challenges, small businesses remain resilient, and focused on deliberate investments
Though COVID-19 continues to weigh on small businesses, owners are focused on staying positive and continuing to make thoughtful decisions. Sixty-nine percent of business owners rated their company’s current financial situation as good or somewhat good, and the measure lifted to
“Owners seem to be acknowledging the challenges COVID-19 continues to bring to their business, particularly with the resurgence in cases across the country,” said Mark Vitner, senior economist with Wells Fargo. “With that said, given the myriad of factors that have affected the small business landscape, the continued recovery in optimism indicates these owners see brighter horizons ahead.”
Many Hearts. One Community.
The survey’s reflection of the long road ahead for small businesses highlights the importance of supporting them on their journey to recovery, particularly during the holiday season. To this end, during the month of December Wells Fargo will use its online and social media platforms to shine a light on small businesses and encourage people to shop locally. Additionally, Wells Fargo will deploy approximately
More details about Wells Fargo’s “Many Hearts. One Community.” holiday campaign can be found on the company’s social media channels and Wells Fargo Stories.
Wells Fargo/Gallup Small Business Index Scores: Q4 2019 – Q4 2020
|
Overall Index Score |
Present Situation |
Future Expectations |
|||
Q4 2020 (surveyed November 2020) |
72 |
24 |
48 |
|||
Q3 2020 (surveyed August 2020) |
60 |
19 |
41 |
|||
Q2 2020 (surveyed April 2020) |
48 |
39 |
9 |
|||
Q1 2020 (surveyed January 2020) |
132 |
63 |
69 |
|||
Q4 2019 (surveyed September 2019) |
142 |
67 |
75 |
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with
Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo
Methodology
Results for Wells Fargo/Gallup Small Business survey are based on web interviews with 600 small business owners, conducted during the period November 6-13, 2020., Beginning in Q2, 2019, interviewing formally transitioned from outbound phone data collection to a national small business web opt-in panel provider.
News Release Category: WF-SB