Small businesses on brink: Survey data show omicron hurts Main Street

A staggering 97 percent of those who are hiring say difficulty in hiring is impacting their bottom line, according to a recent by Goldman Sachs 10,000 Small Businesses Voices survey. Seventy-nine percent of survey respondents are concerned about the ongoing pandemic and the omicron variant, with 71 percent reporting that the rise in COVID-19 cases brought on by the omicron variant has adversely impacted their revenue. Thirty-seven percent said their business had been forced to temporarily close or scale back operations due to the recent rise in COVID-19 cases.

Labor shortages were cited as the most significant challenge facing small-business owners, with 87 percent of those hiring finding it difficult to recruit qualified candidates for open positions.

“Approaching the second anniversary of the onset of the pandemic, it is abundantly clear that small-business owners across the country are facing more challenges than ever and simply cannot catch a break,” said Jessica Johnson-Cope, chair of Goldman Sachs 10,000 Small Businesses Voices National Leadership Council and president of Johnson Security Bureau in New York City. “The relentless pressures to pivot brought by this never-ending pandemic, coupled with the difficult labor market, inflation and supply chain constraints, are all pushing small businesses to the brink.”

There is overwhelming support (82 percent) for the federal government to provide additional emergency financial assistance for small businesses. Eighty-six percent of small business owners support Congress reauthorizing the COVID-Economic Injury Disaster Loan (EIDL) program. The COVID EIDL program expired at the end of 2021.

While more than a third (36 percent) said 2021 was more difficult than 2020, 73 percent said they are optimistic about the financial trajectory of their business in 2022.

The data is a result of a survey of 1,466 Goldman Sachs 10,000 Small Businesses participants by Babson College and David Binder Research from Jan. 10-13. The survey included small businesses from 47 states, 58 percent of whom were women-owned.