Coronavirus Impact on Michigan Small Businesses

Date: March 17, 2020

New survey finds small businesses concerned about future disruption

NFIB Study: Coronavirus Impact on Small Businesses 

WASHINGTON, D.C. (March 13, 2020) – The NFIB Research Center released the following data today on the impact Coronavirus has had on small businesses:

The NFIB Research Center’s new survey on the current impact of the coronavirus outbreak on small business found that while most small businesses are not currently impacted, owners are concerned about future disruptions if the outbreak continues to escalate.

“As of today, our small business owners are not seeing a large impact, but as we know, the situation is changing by the hour. We will continue to listen to our members as they navigate their way through whatever challenges rise from the coronavirus,” said Charles Owens, NFIB State Director in Michigan. “Here in Michigan, our small business owners have a heightened awareness and are keeping an eye out for any potential problems.”

The vast majority of small businesses (74%) are not currently impacted by the coronavirus outbreak. However, the coronavirus outbreak is negatively impacting about 23% of small business owners. Three percent are positively impacted. 

Of those small business owners not currently impacted, 43% anticipate their business being impacted if the coronavirus outbreak spreads to, or spreads more broadly in, their immediate area over the next three months. Twenty percent do not expect to be impacted if the outbreak spreads, and another 37% are not sure.

Of those businesses negatively impacted, 39% are experiencing supply chain disruptions, 42% slower sales, and 4% sick employees. The 4% of owners citing sick employees likely responded this way out of heightened concern and precautions with sick employees showing some signs of cold or flu-like symptoms, not necessarily because they have employees who have tested positive for the virus.

While most small business owners are not currently impacted, many are taking measurable steps to prepare their business from the coronavirus outbreak. Thirty percent of owners have stocked up on disinfectant and hand sanitizer for their business and 12% have talked with employees about sick leave or work from home policies. Three percent have modified their supply chain or changed their buyers or vendors. Just over half (52%) have not felt the immediate need to take any measurable steps. Additional comments included owners taking action by talking with employees about helpful prevention practices, such as frequent hand washing and ordering supplies and inventory ahead of schedule.

The level of concern among small business owners about the coronavirus impacting their business varies greatly in these initial weeks of the outbreak. About 44% of small business owners are “somewhat” or “very” concerned about its potential impact on their business (28% and 16% respectively). Another 37% are slightly concerned and 18%, not at all concerned.

Methodology

This survey was conducted with a random sample of NFIB’s membership database of about 300,000 small business owners. The survey was conducted by email between March 10-11, 2020. NFIB collected 300 usable responses, all small employers with 1-120 employees. 

The full survey can be downloaded or viewed at this link: Coronavirus Impact on Small Business.

 

The NFIB Research Center’s new survey on the current impact of the coronavirus outbreak on small business found that while most small businesses are not currently impacted, owners are concerned about future disruptions if the outbreak continues to escalate.

The vast majority of small businesses (74%) are not currently impacted by the coronavirus outbreak. However, the coronavirus outbreak is negatively impacting about 23% of small business owners. Three percent are positively impacted. 

“As of today, our small business owners are not seeing a large impact, but as we know, the situation is changing by the hour. We will continue to listen to our members as they navigate their way through whatever challenges rise from the coronavirus,” said Charles Owens, NFIB State Director in Michigan. “Here in Michigan, our small business owners have a heightened awareness and are keeping an eye out for any potential problems.”

In Michigan, yesterday the Michigan State Capitol Commission canceled legislative-sponsored events and other tours at the Capitol until at least April 20th. As far as legislative sessions, the House still plans to meet and the Senate said it will meet next week and evaluate weekly and only meet “as needed.” Public access to the Anderson House Building will continue, but sergeants may restrict access to unoccupied member offices and non-essential out-of-state work travel by House employees has been canceled until April 20th.

According to NFIB’s latest survey, of those small business owners not currently impacted, 43% anticipate their business being impacted if the coronavirus outbreak spreads to, or spreads more broadly in, their immediate area over the next three months. Twenty percent do not expect to be impacted if the outbreak spreads, and another 37% are not sure.

Of those businesses negatively impacted, 39% are experiencing supply chain disruptions, 42% slower sales, and 4% sick employees. The 4% of owners citing sick employees likely responded this way out of heightened concern and precautions with sick employees showing some signs of cold or flu-like symptoms, not necessarily because they have employees who have tested positive for the virus.

While most small business owners are not currently impacted, many are taking measurable steps to prepare their business from the coronavirus outbreak. Thirty percent of owners have stocked up on disinfectant and hand sanitizer for their business and 12% have talked with employees about sick leave or work from home policies. Three percent have modified their supply chain or changed their buyers or vendors. Just over half (52%) have not felt the immediate need to take any measurable steps. Additional comments included owners taking action by talking with employees about helpful prevention practices, such as frequent hand washing and ordering supplies and inventory ahead of schedule.

The level of concern among small business owners about the coronavirus impacting their business varies greatly in these initial weeks of the outbreak. About 44% of small business owners are “somewhat” or “very” concerned about its potential impact on their business (28% and 16% respectively). Another 37% are slightly concerned and 18%, not at all concerned.

Methodology

This survey was conducted with a random sample of NFIB’s membership database of about 300,000 small business owners. The survey was conducted by email between March 10-11, 2020. NFIB collected 300 usable responses, all small employers with 1-120 employees. 

A link to the full survey can be found here.

 

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2022 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy