July 27, 2020
Study: 2 in 3 Mass. small businesses temporarily closed, limiting operations
Photo | Grant Welker
A vacant storefront on Worcester's Main Street has been vacant for much of recent years except for when it briefly housed a Zoup! restaurant.
By Grant Welker
Roughly two out of three small businesses in Massachusetts are at least temporarily closed or have limited operations because of the recession and coronavirus pandemic, according to a study by the think tank MassINC.
Of the two-thirds that said they weren't fully open, most said they were open under limited operations. The remaining roughly one-quarter said they were closed for business. Half of those that have closed said they plan to reopen. Most of the rest weren't sure whether they'd open up again.
Nearly half — 46% — of small businesses said they've laid off or furloughed employees, including three out of four restaurants, according to Boston-based MassINC, which polled nearly 1,900 workplaces with less than 500 employees. Among other findings, the survey found the smallest employers and those owned by women and people of color have been hardest hit.
“This survey offers the deepest look we have at what our state’s small businesses are going through during the pandemic, showing the size and shape of the challenges and mapping the road ahead,” Steve Koczela, the president of MassINC's polling division, said in a statement.
Source: MassINC
Nearly two-thirds of respondents said they experienced drops in gross revenue of at least 25% in the first half of the year. Among the smallest businesses — those with under $100,000 in gross revenue last year — revenue fell by more than half in 55% of cases. Female-owned businesses were 15 percentage points more likely to report losing half or more of their income than male-owned ones.
MassINC reported new data on businesses who applied for or received federal aid under the Paycheck Protection Program. Among respondents, 71% said they applied, and 78% of those said they received the full amount requested. Among the smallest businesses, though, those rates were far worse: just 39% applied, and 55% received what they requested.
Among industries, the survey found, the hardest hit have been beauty-related, among which 70% said they've lost at least half their revenue. Among bars and restaurants, 67% said the same. Two out of five restaurants said they've missed rent payments during the pandemic.
Restaurants' and bars' struggles aren't unique to Massachusetts. Data from the analysis website Womply shows sales nationally are down roughly 50% from the same period a year ago.
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