Continued fallout from Covid-19 isn’t the only challenge small businesses have had to deal with this year. There have been other major hurdles standing in their way, but the good news is: there’s an encouraging light at the end of the tunnel. When the current dust settles, continued growth is anticipated.
Trends to Note
As noted in one recent survey, the top challenges facing small businesses in 2021 have included lack of capital (as noted by 23 percent of respondents), employee recruitment (19 percent), and marketing and advertising (15 percent).
- Profitability has fallen off for many companies. Small business owners report a 19 percent profitability decline. Based on epic fallout from the ongoing global pandemic, this comes as no surprise. Although its an obvious concern, only 4 percent of owners predicted that their businesses would not survive this setback.
- Only 5 percent of small businesses have had layoffs. 10 percent of owners cut their own wages in 2020; perhaps this allowed more of them to keep their staffs intact.
- Sixty-one percent of small business owners have benefited from assistance programs offered in light of the pandemic. These have included the Paycheck Protection Program (PPP) as well as Economic Injury Disaster Loan (EIDL) funding.
More Encouraging News
These additional findings bode well for the future of small businesses:
- Only 9 percent of survey respondents indicated a desire to sell their companies in the near future.
- Fifty-one percent said they were planning to expand their businesses or add staff, and
- 10 percent said they wanted to open new locations.
What’s on Your Future Radar?
There’s a whole new year on the horizon – and with it, there will inevitably be more changes and challenges, although hopefully none quite as dramatic as those in 2020 and 2021. Whatever your future plans and picture look like, you may want to consider enhancing your small business by partnering with a professional employer organization (PEO). To learn more about the ins and outs of working with a PEO – and to help determine whether its right for you – contact Lyons HR and speak with one of our team experts. We can help customize the HR business strategy that’s right for your unique needs.