Since March 1, Yelp Reports that 55% of Pandemic Business Closures are Permanent
Today’s post is a sobering look at Yelp’s Economic Average Report, which uses the platform’s extensive data to reveal trends in small business. The COVID-19 pandemic has changed the small business landscape in the US, and mostly not for the better.
Shown below are the total business closures at that particular date. This includes both temporary and permanent closures. You can see that, as of July 10, more businesses were starting to open up.
However, Yelp’s data shows that 55% of these closures are permanent. That’s 72,000 US businesses that don’t plan on reopening.
Which Small Businesses Are Hardest-Hit?
In this comparative chart from Yelp, it’s apparent that large US cities are seeing the most dramatic numbers of closures.
When adjusted for population, the data shows that Hawaii, Nevada and California small businesses have been most adversely affected. The chart below shows business closures per 1,000 people.
Small Business Closures by Industry
Restaurants, shopping and retail saw the most closures.
Yelp reports that not all small business industry is suffering so dramatically:
While many businesses are struggling right now, there are a few that have been able to withstand the economic downturn. Professional services such as lawyers (840 closures) and accountants (294 closures) are seeing fewer closures. Online services like web design (402 closures) and graphic design (308 closures) are also doing well during the pandemic as many businesses have shifted to remote work. Health services such as physicians (1,560 closures), counseling and mental health services (342 closures), and health coaches (52 closures) are also closing at lower rates – all critical resources during this time. Education businesses (3,458 total closures) have also had success weathering the storm, including private tutors (122 closures), as people look for resources to learn new skills and parents seek resources to supplement distance learning.
Some Small Business Industries are Thriving
There’s also data on consumer interest. While consumer interest in some industries like massage therapy or dermatologists are below normal, small businesses in these industries may be seeing significant recovery.
If your small business needs help navigating new challenges and opportunities, contact us.