“Limited Liability Companies (LLC) were the worst hit as they saw declines in revenues by up to 90%. Partial or complete closure had also meant they had to cut back on their staffing as well. The average number of employees in small businesses was around 15 last year. That number has gone down by almost a half with five being the average in 2020.”2
“More than 2,800 businesses in New York City have permanently closed since March 1, according to data from Yelp, the business listing and review site, a higher number than in any other large American city.”3 “When the pandemic eventually subsides, roughly one-third of the city’s 240,000 small businesses may never reopen, according to a report by the Partnership for New York City, an influential business group. So far, those businesses have shed 520,000 jobs.”
“Economists project that more than 100,000 small businesses have shut permanently since the pandemic escalated in March 2020, according to a study by researchers at the University of Illinois, Harvard Business School, Harvard University and the University of Chicago. Their latest data suggests at least 2 percent of small businesses are gone, according to a survey conducted May 9 to 11.”4 The result is likely to further shift the balance of power, and jobs, toward big businesses that have a better chance of surviving the uncertain year ahead by borrowing money or drawing on large cash reserves. Emergency actions by the Federal Reserve, backed by the Treasury, have made borrowing money almost free for large companies.