Small Businesses Lacking Crisis Plans Amid Pandemic, Survey Finds

Strategic Insights -

The COVID-19 pandemic has presented unique challenges to small businesses, and many are struggling to adapt. A recent survey by TD Bank found that 81% of small business owners lacked a crisis plan prior to the pandemic, putting them at a disadvantage when trying to navigate the challenges of shutdowns and remote work. Despite this, 47% of respondents reported not having to close their businesses for any amount of time during the pandemic, and 43% had participated in the Paycheck Protection Program (PPP). However, the survey revealed that many small businesses were ill-equipped to cope with the pandemic, with 31% of respondents not making any changes to their business operations or strategy.

Key Takeaways:

  • 81% of small business owners lacked a crisis plan prior to the pandemic, leaving them unprepared for the challenges of shutdowns and remote work.
  • 47% of respondents reported not having to close their businesses for any amount of time during the pandemic, despite facing other challenges.
  • 43% of small business owners had participated in the Paycheck Protection Program (PPP) to help them stay afloat.
  • 31% of respondents did not make any changes to their business operations or strategy to adapt to the pandemic.
  • 28% of respondents added work-from-home capabilities, 27% reduced operating hours, and 20% temporarily or permanently laid off staff.
  • Only half of respondents reported making changes to better serve their customers or clientele.
  • Millennials and Gen Z business owners were nearly twice as likely as Gen X and baby boomer business owners to make changes to accommodate customers during the pandemic.
  • The majority of small business owners (69%) acknowledged that they need to prioritize building stable financing and cash reserves, enhancing their business model flexibility, and improving budgeting and accounting methods to prepare for future crises.

Statistics:

  • 81%: The percentage of small business owners who lacked a crisis plan prior to the pandemic.
  • 47%: The percentage of respondents who reported not having to close their businesses for any amount of time during the pandemic.
  • 43%: The percentage of small business owners who participated in the Paycheck Protection Program (PPP).
  • 31%: The percentage of respondents who did not make any changes to their business operations or strategy to adapt to the pandemic.
  • 69%: The percentage of small business owners who expressed concern about the health of the economy.

Sources:

  • TD Bank, "Small Business Recovery Survey"
  • TD Bank, "About TD Bank, America's Most Convenient Bank"
  • ENGINE INSIGHTS, survey host
  • TD Wealth, TD Auto Finance, TD Auto Finance website
  • The Toronto-Dominion Bank, TD Bank Group website
  • TD Bank, America's Most Convenient Bank, Facebook page
  • TD Bank, America's Most Convenient Bank, Twitter page