4 characteristics that helped small businesses survive the pandemic
Aabout half of Americans purposely bought more from small businesses and local businesses during the pandemic, and many particularly rallied behind small businesses with four particular characteristics, according to a new NerdWallet survey.
The survey of more than 2,000 American adults found that 51% of Americans made a special effort to shop at small businesses from March 2020 until times of closures and restrictions compared to before the pandemic. Supporting the local economy was the main reason consumers spent more of their money in small businesses, but small businesses that do four things appear to be receiving special attention, the data shows.
1. They offer take-out and delivery
Restaurant revenues are down nearly 27% from expected levels in 2020, and 110,000 restaurants are temporarily or permanently closed, according to the National Restaurant Association. Diversifying away from seated service can therefore be a critical survival tactic, as a third of those who have gone harder to shop at small businesses and local businesses during the pandemic said the increase in options take-out and delivery was behind this support, according to the NerdWallet Poll.
2. They have fewer people inside
Small businesses have been a physical haven for many consumers, according to NerdWallet data. More than a quarter of those who made an effort to shop at small businesses (27%) said they increased their support because these establishments were less likely to be overcrowded.
3. They have what other stores don’t.
NerdWallet data also suggests that small businesses that sell items that are often not available elsewhere can leverage their larger competitors, highlighting the impact of a good inventory management. About a quarter of those who increased their support for small businesses throughout the pandemic (23%) said it was because these retailers had the products they wanted when large retailers were away, according to the investigation.
4. They are doing more online
Many consumers are buying more online, which is benefiting many small businesses that have turned to e-commerce. NerdWallet found that about 1 in 5 Americans who made the effort to shop at local small businesses (22%) started spending more at establishments that were previously only physical stores once they have extended to online offerings.
These four tactics could continue to pay off for many small businesses, given that 81% of Americans plan to spend at least as much if not more money on local small businesses by the end of the year. This may bode particularly well for Small Business Saturday, which is November 27th. According to the data, 43% of Americans plan to spend money at local small businesses on this day.
The pandemic fueled entrepreneurship
The changes brought about by the pandemic in consumer spending habits have also boosted the prospects for many new entrepreneurs. Despite the difficulties small businesses faced during the pandemic, more than one in 10 Americans (12%) have started a business since March 2020, according to the NerdWallet survey.
While there have been multiple motivations behind these entrepreneurial movements, for 1 in 3 the pandemic itself has created the opportunity to start a small business. It created a market for the goods and services that new entrepreneurs wanted to offer, according to the survey.
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Tina Orem writes for NerdWallet. Email: email@example.com.
The article 4 Traits That Helped Small Businesses Survive the Pandemic originally appeared on NerdWallet.
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