It’s been over a year and a half since the world stopped. Not one of us imagined the impact of what COVID brought to our doorsteps. Seeing the busiest cities as ghost towns and playgrounds empty across the globe are images we will never forget.

Small businesses, the pride, and joy of the world economy are doing everything they can in their power to hang on and make it through to keep the doors open. The world is slowly reopening and with masks mandates being lifted with guidance from the Centers for Disease Control and Prevention (CDC) and travel is opening up with the EU working on new guidance on resuming international travel.

In April 2020, when the pandemic took began taking a toll on the economy, it dropped nationwide by 22% (or $4.6 billion) during that first month of the pandemic. Recovery is on the rise, but unfortunately, not for all businesses and industries.

Most Resilient Businesses during COVID

Over 61% of industries saw an increase in revenue during the pandemic, which is a tremendous effort on the owners, workers, and community coming together to save local favorites.

Real Estate and Home Improvement industries saw a huge gain during the pandemic – which does not come as a surprise. At this point, we can all think of one family or individual that moved or has done or completed work on their house. Many families found quarantine showed that their space was too limiting for their family in the new normal of working from home and kids home from school to do e-learning. And many found quarantine the perfect time to complete that to-do list of home projects that have been on the back burner.

However, there are 7 industries that have been the most resilient to the COVID pandemic – some of which are not always top of mind when thinking of small businesses.

Finance and Consulting – up 14%

Agricultural Services – up 11%

Fishing & Hunting – up 10%

Building & Garden Materials – 10%

Utilities – up 10%

Forestry – up 8%

Crop Production – up 8%

RV dealers were up 15% – we can see many people were looking for ways to get out of their house and travel without interacting with too many people.

Many of the industries above, saw a huge decrease in revenue in April and May 2020 but saw pre-pandemic revenue by June 2020. A two-month span of losses does not seem like a lot, but for small businesses, they are everything, and time to bounce back on profit is a long road as reserves are not as deep as corporations.

Hardest Hit Businesses during COVID

Recreation, travel, and tourism still face the greatest recovery from the pandemic, even a year and a half after the first complete month of the pandemic (April 2020). From countries closing their borders and large crowds being banned in every sense (concerts, sporting events, weddings, etc.) – it is still hard to see the full effect of this industry’s recovery as the world is slowly resuming activities and comfort levels are increasing. Companies that rely on face-to-face interactions are continuing an uphill battle in recovery. These companies include theater productions, hotels, museums and galleries, and similar as many cities have just increased capacities and crowd sizes or have not yet done so and the process to engage the community to buy tickets and attend productions. Many entertainment companies, by March 2021, have only recovered 2% below pre-pandemic numbers, while theater production companies are still 24% down in March 2021.

We mostly think of non-essential businesses hurt the most during the pandemic, but there are two industries that we deem as essential, that suffered tremendously during COVID. Oil and gas exploration was down 27%, as many were not commuting to work, school, or traveling for recreation or just to see friends. Elementary and secondary schools were also down by 16%, as schools were not open to students to sign up for activities, clubs, and host events.

Continuing Growth past the Pandemic

From February 2020 to March 2021, we can see that many sectors of small businesses have surpassed their pre-pandemic revenue totals. This is great news as small businesses keep money in local communities and employ those that live in the area. Pride is instilled and thriving small businesses attract more businesses.

Although all 50 states are up in revenue from their pre-pandemic revenues, the makeup of each state must be taken into consideration in its recovery. Urban areas are densely populated with businesses offering a wide range of products and services from street corner to street corner. Rural areas are more agriculturally, building, and special trade-focused, while the suburbs are a mix of rural and urban areas – except, suburbs tend to see an increase in healthcare services. This is why we can see some mountain states doing much better than states with large cities because included in those states are an increased number of businesses that are still hurting that rely on tourism and recreation.

Entrepreneurs on the Rise

It is amazing to see the tenacity of those who may or have faced hardships during these times but still believe in starting their own business. In the height of lockdowns, the number of Employer Identification Number (EIN) applications dropped severely, but not the lowest recorded – it fell even with mid-2016. However, there has been a dramatic spike in EIN applications to over 550,000 at the beginning of 2021, the highest ever seen and continues to be record-setting as we continue through the year.

The rise in applications and those wanting to venture out into building their own business can be attributed to the “new normal” the business world is now in and how subject matter experts can aid other businesses in adjusting. Digital marketing, mobile app development, box subscription services, and a renewed look at fitness and wellness services as many look to drop that “COVID-19” gained during lockdowns and mental health well-being that was neglected or newly needed during a hard (to say the least) year and a half.

Programs to Help

 Just as there is a glimmer of pre-pandemic life on the horizon with many receiving vaccinations and life returning for many – there is still a long road ahead of us as we find many local favorites closing or needing an extra helping hand. Continuing community support is crucial for small businesses to survive. It is amazing to see people rally behind each other and show incredible compassion and empathy for each other’s situations.

Small businesses should not forget about the relief and loan programs out there for assistance in their journey to rebuild.  The U.S. Small Business Administration (SBA) currently offers four different types of loan assistance for small businesses in the fight to recover from the COVID-19 pandemic.

Moving Forward

The road to recovery and fully submersed in a new normal will take tremendous effort with pain points along the way. Finding the proper resources and adapting to new business models can be overwhelming – Colleen Eakins Design can assist in problem-solving and execute your business and marketing needs as we tread these waters together.

Sources:

Inuit Quickbooks COVID-19 Analysis: https://quickbooks.intuit.com/r/coronavirus/small-business-recovery/#

Visual Capitalist: https://www.visualcapitalist.com/mapped-the-state-of-small-business-recovery-in-america/