Brian Wallace, Founder & President, NowSourcing
The COVID-19 pandemic had a profound effect on the economy, but small businesses took an especially hard hit. In fact, 96% of small businesses were affected by the pandemic which resulted in substantial layoffs and even some businesses having to shut their doors.
In the midst of the pandemic, 30% of small businesses were forced to shut their doors. Women-led small businesses were affected more, with 20% closing compared to 16% of small businesses that were led by men. Minority-led small businesses are also affected more, with 50% being more likely to report permanent closure, reduced sales, and employee layoffs.
While many small businesses were forced to close, owners found alternative ways to keep their “doors” open. In 2020, Americans created 2.8 million more online microbusinesses compared to the previous year. While physical locations were suffering, businesses could transition online to continue making sales. Other businesses have looked at these online operations for ideas on how to increase their success, and 20% have dramatically changed their business models in order to do so. One of the biggest ways that businesses have changed after the pandemic has been shifting to digital platforms.
45% of small businesses are ready to start planning for a digital future, and 28% are already working on it. This is a result of the success that online microbusinesses found during the pandemic and that has continued today. Many of these microbusinesses are still operating, and 67% are planning to grow into full-time operations. If these businesses were to go full-time, it is predicted that by 2024 small businesses could add $2.3 trillion to global GDP growth. With the transition to full time however, there can be new difficulties that arise.
Many small business owners handle all of the aspects of their businesses. This means that with any increase in success, there is more work to be done that can be overwhelming and lead to a loss of customers and success overall. To avoid that, many digital agencies are utilizing business systems to help keep them as efficient as possible. These systems can help business owners keep track of their progress across the entirety of their business so they know where they should be focusing on as they continue to grow. After the loss that many small businesses took during the pandemic, it is important that owners have all the tools they need to focus on rebuilding. To learn more about digital business systems and the future of digital agencies, take a look at the infographic below:
About the Author: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency in Louisville, KY and Cincinnati, OH which works with companies ranging from startups to Fortune 500s. Brian runs #LinkedInLocal events, hosts the Next Action Podcast, and has been named a Google Small Business Adviser for 2016-present. Follow Brian Wallace on Linked