Small Business Owners Expect Swift Recovery

Small Business Owners Expect Swift Recovery

June 23, 2020
A survey from the Society for Human Resource Management found that 52% of small businesses expect to recover to pre-COVID profitability in six months or less.

Small businesses are figuring it out.

Of those allowed to reopen in some capacity by their state, city, or county, 81% have already begun or are in the process of reopening their business.

And that is causing them to predict a quicker recovery than what has been forecasted by economists, explains SHRM (Society for Human Resource Management).

In a study released on June 23, 52% of those surveyed expect to recover to pre-COVID profitability in six months or less, compared to other studies predicting a recovery in some areas won't occur until 2024.

“The U.S. workforce has experienced nothing short of an upheaval,” said Johnny C. Taylor, Jr., SHRM CEO in a statement. “Following a pandemic, recession, and protests nationwide, we’re seeing small businesses innovate and adapt as they reopen their doors. This research underscores how small businesses have truly proven their agility and flexibility as the country confronts the COVID-19 pandemic.”

 And that flexibility is causing great optimism.

“Notably, 75% of small business executives are confident their business will be better prepared to effectively handle a crisis like the COVID-19 pandemic if one occurred in the future,” Taylor added.

Part of the reason they feel confident about facing future issues is that they are willing to make some workforce changes.  For example, 82% plan to employ a more flexible work-from-home policy for all workers with telework-capable jobs. And 43% plan to accommodate employees with children by allowing flexible hours/compressed workweeks.

Workforce process improvement has also led to improving skills. One in five small business owners has asked their employees to learn new skills to support changes in their business model.

Interestingly, 56% of the businesses in the survey report that they haven't had to make permanent layoffs. 

In addition to workplace policies, the companies are looking to new, or novel technology processes with one in 10 having adopted these technologies. 

The survey also highlights innovations in business operations, changes in policies and key challenges. To help companies navigate the new normal,  SHRM offers a variety of resources to small businesses including:

Reopening and Rebuilding Small Businesses  

Impact of the Pandemic on Small Businesses

Resources on COVID-19 and the Workplace

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