Small Business Continuing to Struggle – Lee Chandler

As the pandemic continues to go on many business owners continue to struggle to stay
afloat. Some businesses have been hit harder than others, however. Retailers which
were struggling pre pandemic now find themselves in a much worse situation than they
did in 2019 usbs reports that they expect 100,000 retail stores to close over the next five
years. Retailers are not the only business being hit hard. Restaurants have also been
hit extremely hard as well. Since the beginning of the pandemic 32,000 restaurants
have closed with up to 60 percent saying that it is permanent. Bars and clubs continue
to struggle due to the fact that their business relies heavily on social interaction to draw
people to come to their establishments. For all of these industries profits do not matter
as much as simply surviving to 2021 and to the end of the pandemic does.

 

 

Even though restaurants, bars, and clubs have been hit the hardest, many others
continue to struggle as well. 97,966 businesses have been shut down permanently.
Business has not been devastated for all however during the pandemic construction
related business are still going strong despite the pandemic. Most jobs sites that were
shut down at the beginning of the pandemic have been reopened. Auto repair shops
and auto body shops have for the most part managed to stay afloat.

Certain areas have been hit harder than others for closures. New York and LA are
currently doing the worst. Half of LA’s closures are now considered to be permanent.
While 63 percent of New York's Closers are now considered to be permanent. California
overall is struggling with businesses unable to cover fixed costs which are some of the

highest in the nation. Other cities that have been hit hard are ones that rely on tourism.
Honolulu and Hawaii in general is struggling. Las Vegas is continuing to struggle as
cassinos continue to struggle. Tourism will not be able to rebound until people feel safe
to fly again which may be a long time.

The businesses that are still open need more assistance from the government. The
government does not seem like it will be able to help for the time being since they failed
to come to an agreement on another stimulus package. “I have instructed my
representatives to stop negotiating until after the election when, immediately after I win,
we will pass a major Stimulus Bill that focuses on hardworking Americans and Small
Business,” Trump tweeted. With the government unable to help the number of
businesses that close will continue to rise. If help ever does come to these businesses,
it will probably not be enough. Meaning the economy and job opportunities after the
pandemic could look very different than before. The business that manage to survive
are the ones that find was to adapt during this pandemic. This also means that there will
be opportunities for many new entrepreneurs to set up new restaurants, bars, and clubs
after the pandemic.

https://www.cnbc.com/2020/10/06/trump-says-hes-calling-off-stimulus-negotiations-with-
democrats-until-after-the-election.html
https://www.wxii12.com/article/2020-has-been-catastrophic-for-tourism-heres-what-the-
industry-needs-to-get-back-on-its-feet/32461120#
https://www.cnbc.com/2020/09/16/yelp-data-shows-60percent-of-business-closures-
due-to-the-coronavirus-pandemic-are-now-permanent.html
https://www.wsj.com/articles/coronavirus-finishes-the-retail-reckoning-that-amazon-
started-11589459920
https://www.forbes.com/sites/pamdanziger/2020/06/14/retailers-if-you-think-2020-is-
bad-wait-because-it-is-going-to-get-worse/#5a1a89d3502a

 

christian u

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