Biz2Credit’s survey of 300 small businesses found that small companies on average spent $62,599 on payrolls in 2020, compared to $137,126 last year.
According to the report, small businesses reported a 52% drop in revenues during the pandemic. The average revenue dipped to $193, 865 during Q2 2020, compared to $405,030 in 2019. With up to 90% reduction in revenues, Limited Liability Companies were the most impacted by the pandemic.
However, the restaurant industry also experienced a revenue drop of 72% between April and June. Of those polled, 60% of businesses that were closed for some part of 2020 saw revenue declines of 87%.
For small businesses to recover, they must invest nearly $29,230 in PPEs and renovations as per the report. While support for businesses was limited, 20% were offered a deferred payment option by landlords or mortgage companies.
[3 minute read]