(AmericanProsperity.com) – Since state governments started shutting down businesses in mid-March to combat COVID-19, many small businesses have struggled. Congress passed billions in funding for the Payroll Protection Program (PPP), which has provided loans to help companies weather the storm. Unfortunately, more than 100,000 small businesses have not made it and closed their doors for good.
While there’s plenty of bad news to dwell on, there’s also some very optimistic news for the US economy moving forward.
Entrepreneurs are an adaptable group of people. It’s who they are, and what they do is innovate. While the economy lost 100,000 small businesses since March, numerous small businesses have survived and moved online.
Additionally, data from the US Census Bureau says 500,000 new applications for an employer identification number (EIN) were filed over the same time. Also, the Small Business Administration (SBA) loaned $150 million to nearly 300 start-up businesses.
Entrepreneurs are Optimistic
There is a lot of optimism among entrepreneurs. According to a new study by the Connected Commerce Council, a non-profit dedicated to promoting small business access to digital technologies and tools, 76% of small businesses are relying more on digital tools compared to before the COVID-19 pandemic. And, 74% of small businesses expect to be back to business as usual within 6 months of governors lifting restrictions.
Many small businesses are learning that technology can help transform their company and help to increase their bottom line during the pandemic. Over the last few months, 31% of entrepreneurs said their business would fail without digital tools. Another 40% are relying on said tools to acquire new customers.
Moving forward, 80% want to learn how to utilize digital technology to improve their business. According to another survey from McKinsey, 60% of businesses say digital and remote sales were proving as effective (29%) or more effective (31%) than the way they did business before COVID-19.
Some of the Most Successful Companies Started During Difficult Times
Some of the world’s most successful companies were founded during times of crisis. Chase Bank was founded during the great depression. Microsoft was founded in 1975 as the country faced a crushing recession and stagflation. Airbnb was founded in 2008 during the worst part of the Great Recession. Venmo and Uber were founded in 2009.
Some of the 500,000 companies founded over the last few weeks will become major success stories in the years to come. The bright spot in this challenging time is how resilient the US economy is thanks to the men and women who risk it all to start businesses, provide jobs, and serve their customers. They are the key to America’s recovery.
~Here’s to Your Prosperity!
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