The COVID-19 pandemic affected the economy across the board, but it hit small businesses even harder. In fact, 96% of small businesses were affected by the pandemic which resulted in substantial layoffs and even some businesses having to shut their doors.
In the midst of the pandemic, 59% of small businesses had to lay off a large number of their employees in order to keep their doors open. For 30% of businesses however, this was not enough, and they were forced to close permanently. Women-led small businesses were affected more, with 20% closing compared to 16% of small businesses that were led by men. Minority-led small businesses are also affected more, being 50% more likely to report permanent closure, reduced sales, or employee layoffs.
While many businesses had to close during the pandemic, there were some opportunities that emerged. In 2020, Americans created 2.8 million more online microbusinesses compared to the previous year. While physical locations were suffering, businesses could continue online to stay afloat. Many of these businesses are still operating, and 67% are planning to grow into full-time operations. Digital agencies are on the rise – here’s to looking forward towards digital agency growth to steady the way forward.
The pandemic had a profound effect on small businesses, but the future’s looking brighter. Learn more about how digital agency growth in the infographic below: