Smart money has always pegged small businesses as being a resilient bunch. Now, fresh data backs this bet up.
In a survey that collected the responses of 5,265 small business owners worldwide, internet domain registrar GoDaddy found that 71% of entrepreneurs anticipate their business will recover from COVID-related losses within the next year. This optimism is despite the economic wreckage the pandemic has brought to 2020.
The survey, which received responses throughout the month of June, specifically considered the input of micro-businesses — over 90% of respondents had less than 10 employees while half were solo-prenuers. Small business owners from Australia, Canada, Germany, India, Mexico, Philippines, Spain, Turkey, United Kingdom, and the US were tapped for the survey. GoDaddy and Savanta, the data and research firm that aided the study, released the results on August 19.
“As difficult as the last six months have been, it’s inspiring to see global entrepreneurs determined to work their way back to recovery and success,” GoDaddy’s vice president of global marketing operations Melissa Schneider said in a statement. “At the heart of entrepreneurism is the ability to adapt and move forward.”
Other numbers look promising, too. A whopping 63% of respondents expect their business to grow at least 25% within the next three to five years. According to GoDaddy, this number is in line with pre-pandemic expectations.
In a separate blog post on its COVID-19 resources website, #OpenWeStand, GoDaddy revealed that only 3% of the businesses surveyed said they’ve had to shut down permanently.
“This underscores the resilience of the entrepreneurial spirit and offers some hopeful insight into their collective future,” Schneider wrote in that post.
Of course, it’s not all sunshine and roses — COVID-19 has still been a nasty pandemic after all. The survey found that 75% of respondents have suffered reductions in revenue, while another 36% resorted to temporary closures.
COVID-19 Has Sparked The Entrepreneurial Spirit
Perhaps the most poignant part of GoDaddy’s survey is how it revealed that the heart of entrepreneurship is alive and well — especially as COVID-19’s recession is encouraging individuals to come up with more creative ways to make money.
For instance, 30% of those surveyed indicated they had or intend to start a business, non-profit, or side-hustle because of job loss due to the pandemic. And 16% confirmed they had already started such a venture.
Millennials are the most eager age demographic to leap into the entrepreneurial world: 40% of millennial respondents said they wanted to pursue a side-hustle compared to only 12% of baby boomers.
This eagerness to jump into or kick-start a small entrepreneurial dream mimics earlier financial downturns. In previous recessions, businesses started up smaller (but are more productive on a revenue-per-employee basis) than businesses created during boom years, according to research by Northwestern University’s Kellogg School of Management.
“As history has shown us, and this survey tells us, the downturn is likely to lead to a new wave of entrepreneurs and small businesses,” Schneider said. “It’s that spirit of rebirth and innovation that can help lead the global economy to recovery.”
Resources To Thrive In A COVID-19 Economy
While financial woes have indeed impacted many in the world of commerce, there’s still plenty of hope out there that small businesses can survive and even thrive amid a pandemic.
Business owners looking to advance their company throughout these tricky times can visit Merchant Maverick’s guide to marketing during the pandemic. Digital-focused firms may also want to read our tips for eCommerce during COVID-19.
If you’re wanting to tap into your own entrepreneurial beast, take a peruse of the best website builders for entrepreneurs. We’ve also written a step-by-step guide for entrepreneurs looking to start their own delivery business.
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