How the small businesses in Miami battled COVID without harsh lockdowns
It won't be an understatement to say that small businesses are the backbone of Florida's economy. At the moment, the state is home to around 2.7 million small businesses. These businesses don't just contribute their fair share to the state's GDP but are also major wealth generators and job creators.
Unfortunately, the unprecedented crisis of 2020 took a massive toll on these businesses' profitability, pushing them into bankruptcy. Relaxed lockdown restrictions and low regard for social distancing had a significant role to play.
Let's see what the statistics have to say:
The survey
Earlier this year, the Florida Small Business Development Center (SBDC) Network survey gauged the impact of COVID19 on Florida's businesses, especially during the summer of 2020. The survey respondents included as many as 4,842 businesses with less than 100 employees, selected from 65 out of 67 counties. The respondents hailed from a broad spectrum of industries and sectors.
The findings
The survey results showed that the pandemic's effect varied across different industries. Businesses hailing from the leisure and hospitality industries took the hardest hit. More than half of these were forced to shut down.
Additionally, around 85% of businesses stated that they struggled financially and lost a great deal of potential revenue. Many of them continue to be uncertain about where the economy is headed. Around 60.8% stated that they still have concerns and aren't sure whether they'd operate in the future.
Further insights
At the same time, we saw a gradual shift in business models, as businesses went online. Approximately 29% of the companies reported that they benefited from online sales.
Companies from the arts and entertainment arena, however, lost nearly 14 weeks of revenue (66.3%). This number was closely followed by the accommodation and food services sector as it lost out on around 12.6 weeks of revenue generation. Unfortunately, a hefty 40% of businesses reported closing.
As we enter 2021, the Florida economy is picking up, and businesses have entered the recovery phase. All we need to do to flatten the curve is be responsible, empathetic, and follow the guidelines. Stay tuned to Calle Ocho News for more updates on some fun things to do in Miami and the best places to visit in Miami—safely and responsibly.
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