42% of SMBs Risk Failing in Q4 2020 by T.R. CUTLER
While there have been some spotty encouraging trends in the manufacturing sector, the impact has been too deep for too long.
To get an understanding for just how bad things are in the small business economy right now, small business owners compared Q4 2019 revenues to what they anticipate for Q4 2020, and the percentage of those revenues they would need to attain to stay in business into 2021. The number one factor slowing recovery is low consumer confidence caused by the increasing Coronavirus cases. The prognosis for many small manufacturing businesses during Q4 is not good according to an Alignable Pulse Poll of 6,300+ small business owners. Alignable is the largest online referral network for small business owners with over 5.5 million members across North America. The survey, conducted from September 18-21, 2020, asked how much revenue small business owners expect to earn in Q4 2020 and how much they need to stay in business. Combining those answers, the data revealed that 42% of small businesses might be forced to close permanently before 2021. Drilling into the data, 38% of B2B firms could shut down in Q4. Nearly two-thirds (63%) of respondents said they would apply for additional relief funding if made available. When the Coronavirus Crisis hit the U.S. in March, Alignable started tracking it, expecting it to rise and then fall as the country tackled this problem.
Manufacturing Outlook / October 2020
When it comes to another round of federal relief funds, the data showed that 72% of businesses experiencing negative financial impacts would apply for additional funding if offered. However, 37% of that group said they would only apply if the terms provided greater flexibility around using the money.