2020 - 21
COVID INSIGHTS BUSINESS SURVEY KEY FINDINGS FROM FOURTH SURVEY
PREPARED BY: UNIVERSITY OF MINNESOTA EXTENSION SERVICE Jennifer Hawkins & Brigid Tuck, PhD PREPARED FOR: ROCHESTER AREA CHAMBER OF COMMERCE March 1, 2021
INTRODUCTION Beginning in early 2020, the Rochester Area Chamber of Commerce partnered with the University of Minnesota, Extension Service to conduct a series of surveys gauging the impact of COVID on business and commerce in the greater Rochester Area. Since the initial survey was sent out in early 2020, an additional three surveys (four in total) were set out to businesses across Olmsted County. This report details the significant findings from the fourth and most recent survey.
WHO RESPONDED TO THE FOURTH SURVEY?
198
Organizations responsed
74%
For-profit businesses
26%
Nonprofits
The results of this survey has been shared with policymakers to ensure they are informed of the current state of Rochester area businesses, and have been used to better tailor programming, services, and relief to businesses. Thank you to Olmsted County and Rochester Area Economic Development, Inc. (RAEDI) for helping to encourage survey participation and engagement.
NOTE: The mix of firms relected the makeup of the overall economy for the area
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RESULTS What effects did the pandemic have on the businesses? Questions assessed the effects in several categories including operations, employment and revenues.
Operations In terms of operations effect, the number and percentage of businesses reporting they are closed increased substantially. The most affected sector is entertainment and recreation. The survey also asked what impact changes in remote education and reduced childcare options had on their business operations. About half of respondents (52 percent) indicated some level of negative impact, whereas the remaining respondents indicated the effect on their business was neither positive nor negative or to some extent positive.
Employment Responses to the survey demonstrated how employment fluctuated throughout the pandemic. There was a significant decline from March to May 2020, then a slight recovery over the summer, followed by another decline in the fall. Responses also illustrate that firms still do not expect employment to recover to pre-pandemic levels by April 2021.
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Revenues The percentage of firms reporting declining revenues between September and December was slightly higher than the prior measurement period. In September, about 24 percent reported a decline in revenue during the few months prior, whereas 36 percent reported a decline between September and December. However, there appears to be optimism. Looking ahead to April, there was a 10 percent increase in the number of firms expecting increases in revenue. The effects of the pandemic on revenue between September and December varied by industry. Accommodations and transportation and distribution continued to report declining revenue. Revenues for manufacturing, banking/finance, and entertainment were steady. Restaurants/food appeared to be showing some sign of recovering.
What steps did firms take to address the effects of the pandemic? First, almost all firms (97 percent of respondents) modified their business in some manner due to COVID-19. This was up from 91 percent of responses in the third survey that went out in September of 2020. As with past surveys, the highest number of respondents indicated modifications to employment practices. The survey results also indicate that these modifications may be long lasting. Only 22 percent indicated the changes will not endure. Second, firms accessed available support programs. A majority of firms, 68 percent, accessed the federal Paycheck Protection Program (PPP). This is roughly in line with the data for Minnesota. As of January 2021, about 73% of Minnesota firms that responded to the U.S. Census Business Pulse survey had received PPP loans.
How optimistic do firms feel optimistic about the future? A majority of respondents (about 60 percent) are expressing optimism for 2021. However, the optimism is tempered by the extent to which their firm was directly impacted by the most recent dial-back Executive Order.
Click HERE to see the report in the March Advantage Magazine
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