The CNBC/SurveyMonkey Small Business Confidence Index dropped to its lowest value yet: a score of 49 out of a possible 100, with a sharp, 12-point plunge quarter-over-quarter making this the first time since the start of the survey that small business sentiment has been net negative.
The economic effects of the coronavirus pandemic are staggering. Almost a third of small business owners have been required by their state or local government to close their in-person business operations, and 25% have temporarily closed their entire business. A substantial 36% have cut their own pay, while 15% have furloughed some or all of their employees, 14% have laid off some or all of their employees, and another 9% have cut their employees’ pay. For a few, the crisis has brought opportunity: 7% of small business owners say they’ve pivoted to provide products or services to aid in fighting the outbreak.
All told, a whopping 71% of all small business owners say the coronavirus outbreak is likely to have permanent effects on the way they run their business.
Other key findings in this quarter's survey include:
- Fewer than one in five (18%) small business owners now say current business conditions are good; more than half (56%) had taken this sunny view last quarter.
- Now, 40% of small business owners say current conditions for their business are bad—a number that had previously only been as high as 11% in Q2 and Q3 of 2017.
- 22% of small business owners say they expect their headcount to decrease in the next year (up from 5% in Q1), while 19% expect it to increase (down from 32%).
- 36% of small business owners have cut their own pay to help get through the crisis.
Read more about our polling methodology here.
Click through all the results in the interactive toplines below:
Question text:
Which one of the following issues matters MOST to you right now?
Do you approve or disapprove of the way Donald Trump is handling his job as president?In addition to yourself, how many employees work at your small business?Is your business a:Overall, would you describe current conditions for your business as good, middling or bad? In the next 12 months, do you expect your business’s revenue to increase, stay the same, or decrease?
In the next 12 months, do you expect your business’s staff of full-time employees to increase, stay the same, or decrease?In the next 12 months, do you expect changes in government regulations to have a negative effect, no effect, or a positive effect on your business?
In the next 12 months, do you expect changes in trade policy to have a negative effect, no effect, or a positive effect on your business? In the next 12 months, do you expect changes in technological innovation to have a negative effect, no effect, or a positive effect on your business? In the next 12 months, do you expect changes in immigration policy to have a negative effect, no effect, or a positive effect on your business?
In the next 12 months, do you expect your business’s staff of full-time employees to increase, stay the same, or decrease?
In the past two months, has your business’s revenue increased, stayed the same, or decreased?
In the past two months, has the size of your business’s staff of full-time employees increased, stayed the same, or decreased?
In the past two months, has demand for your business’s core products or services increased, stayed the same, or decreased?
How likely is it that the coronavirus outbreak will have permanent effects on the way you run your business?
Under the current “lock down” conditions, how long can your business continue operating?
Have you applied for a loan under the new Small Business Administration Paycheck Protection Plan (PPP)?
Have you applied for an economic injury disaster loan from the Small Business Administration?
Which, if any, of the following has your business done as a direct result of the COVID-19 outbreak? (Select all that apply)
(Of those who have furloughed or laid off some or all employees) Do you expect to hire some or all of your employees back once things return to “normal”?
*businesses
