Survey examines pandemic’s stress on local economy
By Robert Cloud
A recent survey examined how the pandemic continues to impact New London businesses.
April Kopitzke, executive director of the New London Area Chamber of Commerce, presented the survey’s results at a Dec. 15 meeting of the Economic Development Committee.
Of the 30 businesses that responded, 55% employed 1-10 people, while nearly 20% of the respondents were self-employed, 20% employed 11-24 and 5% employed 25-49.
The survey asked, “How many of your employees are at risk of unemployment and/or layoff as a result of the pandemic?”
“A strong 65% answered that zero employees were at risk during the pandemic which was a relief to see,” Kopitzke said. “But eight of them shared that 1-5 employees are at risk of layoff, two of them said 6-10 and one of them predicted that 11-20 employees could be unemployed.”
Kopitzke noted, “That tells you that business is on the fence of closing.”
The survey found one business is at risk of closing within two months, while two may close within three to five months if the current economic disruption continues.
Four businesses reported they were secured for five months with reserves, and 78% of the businesses responded that they were not concerned with permanently closing at this time.
Among the top concerns as a result of the pandemic, the survey received 36 responses that listed losing work or customers as a concern,
The survey asked for a list of concerns from each business rather than just one.
Also listed were maintaining inventory, employee health, losing employees and government handouts causing taxes to rise.
Seventeen businesses indicated they received financial assistance through the federal Paycheck Protection Program, and eight obtained We’re All In Small Business Grants.
The survey also asked what other resources or ideas businesses used to stay open.
“I used my own money that has run out, took cash advances out that almost broke me, borrowed from the bank, borrowed from my family,” one business owner answered. “Now the well is dry.”
Kopitzke noted how important it is that residents support their local businesses.