More than half of America’s small businesses could close within six months because of coronavirus

May 7, 2020 by

  • Experts warned the ‘alarming’ results mean 14million businesses could close
  • Just one in three small companies expect to survive beyond six months 
  • It could mean millions more people across are plunged into unemployment
  • Bank of America forecasts a ‘shocking loss’ of 22million jobs nationwide in April 
  • Here’s how to help people impacted by Covid-19

More than half of America’s small businesses could be wiped out because of the devastation caused by coronavirus, a study has claimed.

The ‘alarming’ findings are the result of research from the Society for Human Resource Management (SHRM).

It found that around 14million businesses could shut for good, forcing millions more people into unemployment.

A massive 52% of small companies in the survey said they expect to be out of business within just six months.

Above, a pedestrian strolls past small businesses that are shuttered closed during the coronavirus epidemic in the Crown Heights neighborhood of Brooklyn in New York in early April

Johnny C. Taylor Jr, CEO of the SHRM, said: ‘These might be the most alarming findings to date. Small business is truly the backbone of our economy.

‘So, when half say they’re worried about being wiped out, let’s remember: We’re talking about roughly 14 million businesses.’

The survey also revealed that barely a third of small businesses said they expected to be able to continue operating after six months, and a further 14% are uncertain if they’ll be able to do so.

The Bank of America is forecasting a ‘shocking loss’ of 22million jobs nationwide in April (file photo)

The news means millions more people could be plunged into unemployment, as America grapples with job losses at a rate it has never before experienced.

The report comes as the Bank of America forecasts a ‘shocking loss’ of 22million jobs nationwide in April.

The Bank also expects April’s unemployment rate to surge to 15%, more than three times the 4.4% that was recorded in March.

A group of economists, led by Alexander Lin, wrote on Wednesday that: ‘The April employment report will reveal unprecedented job losses as the economy has been shut down to control the spread of COVID-19’, as reported by Business Insider.

Around 30million people have filed for unemployment since coronavirus hit the US with many having been laid off as businesses were shuttered because of lockdown restrictions.

Neil Bradley, executive vice president at the US Chamber of Commerce, admitted this week that:  ‘We know that, sadly, some businesses won’t reopen. We also know that the longer it takes to be able to have a safe reopening, the more that number is going to, sadly, grow.’

Businesses that are able to reopen as the country’s lockdown measures are gradually eased – such as restaurants, bars, and barbers, will likely be able to operate with limited capacity.

Source: More than half of America’s small businesses could close within six months because of coronavirus | Daily Mail Online

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