40% of America’s Small Businesses May Close Within the next 6 months
The Wuhan coronavirus hasn’t just taken lives, it’s also taken livelihoods, and according to a report from the New York Times, the number of businesses COVID will claim is as astounding as it is heartbreaking.
According to the NYT, “more than 40 percent of the nation’s 30 million small businesses could close permanently in the next six months.”
Most towns and cities benefit economically from small businesses in their area. Not only do these businesses provide everything from medical care to construction and home repairs, but they also provide jobs that residents desperately need.
Small businesses collectively employ far more people than corporations do according to Entrepreneur:
Estimates place the number of small businesses in the U.S. at between 25 million and 27 million. Although many of these are “micro-companies” or are run by “solo-preneurs,” the statistics are pretty consistent in showing that 60 percent to 80 percent of all U.S. jobs are created by small businesses.
Furthermore, it’s unclear if major chains will take their place and fill in the gaps. Corporations are also feeling the hurt according to CNBC, who reported that some 150 companies have taken massive hits on their earnings, including AMD, Apple, Best Buy, Big Lots, Coca Cola, and Costco.