Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcasts
  • About Us
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Cold Call Podcast
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    • COVID-19 Business Impact Center
      COVID-19 Business Impact Center
      How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey
      18 Apr 2020Working Paper Summaries

      How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey

      by Alexander Bartik, Marianne Bertrand, Zoë B. Cullen, Edward L. Glaeser, Michael Luca, and Christopher Stanton
      This survey of 5,819 small businesses in the United States shows that the pandemic has already caused massive dislocation among small businesses. Many businesses think they will not be able to survive if the crisis persists for the coming months. The immediacy of new funding will likely impact medium-term outcomes.
      LinkedIn
      Email

      Author Abstract

      In addition to its impact on public health, COVID-19 has had a major impact on the economy. To shed light on how COVID-19 is affecting small businesses—and on the likely impact of the recent stimulus bill—we conducted a survey of more than 5,800 small businesses. Several main themes emerge from the results. First, mass layoffs and closures have already occurred. In our sample, 43% of businesses are temporarily closed, and businesses have—on average—reduced their employee counts by 40% relative to January. Second, consistent with previous literature, we find that many small businesses are financially fragile. For example, the median business has more than $10,000 in monthly expenses and less than one month of cash on hand. Third, businesses have widely varying beliefs about the likely duration of COVID-related disruptions. Fourth, the majority of businesses planned to seek funding through the CARES act. However, many anticipated problems with accessing the aid, such as bureaucratic hassles and difficulties establishing eligibility.

      Paper Information

      • Full Working Paper Text
      • Working Paper Publication Date: April 2020
      • HBS Working Paper Number: HBS Working Paper #20-102
      • Faculty Unit(s): Negotiation, Organizations & Markets; Entrepreneurial Management
        Trending
          • 25 Feb 2019
          • Research & Ideas

          How Gender Stereotypes Kill a Woman’s Self-Confidence

          • 17 May 2017
          • Research & Ideas

          Minorities Who 'Whiten' Job Resumes Get More Interviews

          • 24 Feb 2021
          • Lessons from the Classroom

          What History's Biggest Wars Teach Us About Leading in Peace

          • 17 Feb 2021
          • Research & Ideas

          Pandemic Self-Care for CEOs: Rituals, Running, and Cognitive Restructuring

          • 22 Feb 2021
          • Book

          Reaching Today's Omnichannel Customer Takes a New Sales Strategy

      Zoe B. Cullen
      Zoe B. Cullen
      Assistant Professor of Business Administration
      Contact
      Send an email
      → More Articles
      Michael Luca
      Michael Luca
      Lee J. Styslinger III Associate Professor of Business Administration
      Contact
      Send an email
      → More Articles
      Christopher T. Stanton
      Christopher T. Stanton
      Marvin Bower Associate Professor
      Contact
      Send an email
      → More Articles
      Find Related Articles
      • COVID-19
      • Small Business
      • Entrepreneurship

      Sign up for our weekly newsletter

      Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.
      ǁ
      Campus Map
      Harvard Business School Working Knowledge
      Baker Library | Bloomberg Center
      Soldiers Field
      Boston, MA 02163
      Email: Editor-in-Chief
      →Map & Directions
      →More Contact Information
      • Make a Gift
      • Site Map
      • Jobs
      • Harvard University
      • Trademarks
      • Policies
      • Digital Accessibility
      Copyright © President & Fellows of Harvard College