SAN FRANCISCO, Oct. 26, 2020 /PRNewswire/ — A new sentiment survey of modest and medium-sized business (“SMB”) owners describes their outlook for 2021 as optimistic even with the major influence of COVID-19 on organization overall performance during 2020. The report, authored by GGV Money and Howdy Alice, also suggests that small business homeowners anticipate an uptick in employing, technology purchases, and over-all advancement.
There are 30 million SMBs in the U.S., using 60 % of Us residents and symbolizing 40 per cent of U.S. GDP. In accordance to the facts, 64 % of 4,100 SMB owners surveyed reported their company efficiency was even worse in 2020 than in 2019, and 45 per cent were pressured to lay off employees. Also, companies owned by ladies, people today of color, and U.S. veterans have been impacted disproportionately by the pandemic and other difficulties of 2020.
In contrast, the sentiment for 2021 demonstrates the resilience of tiny enterprise entrepreneurs to discover new methods to achieve buyers, leverage technology to speed up advancement, and adapt functions to endure and prosper, ensuing in important optimism for subsequent yr.
- 83% feel their business will execute greater in 2021 than in 2020 (4,106 owners).
- 93% strategy to retain the services of in 2021 compared to 45% that laid-off staff in 2020 (4,111 owners).
- 75% intend to commit additional on know-how in 2021 than in 2020 (784 house owners).
- 75% referred to as on the government for help in the type of crisis grants, lengthy-phrase grants, and lease relief (97,341 entrepreneurs) even however only 52% (of 4,134 owners surveyed) used for loans from the Paycheck Safety Application due to the program’s absence of entry and focus on SMBs.
GGV Capital’s SMBTech Index, also released nowadays, underscores these conclusions and implies a similarly positive outlook and toughness in compact enterprise progress. The Index, now 22 publicly traded companies that give the technology that powers small firms, has developed from approximately $15 billion in community market value in 2010 to $200 billion in 2018 and $566 billion currently.
“The U.S. financial system is in the very first inning of a huge reboot immediately after the Covid-19 pandemic, and tiny small business entrepreneurs are major the way. They are recognizing options, starting off new firms, and embracing know-how as a way to adapt and create enduring corporations,” explained Jeff Richards, Running Companion, GGV Funds.
“In a 12 months of tragedy impacting human lifestyle and compact corporations, business people continue on to keep an optimistic state of mind,” claimed Elizabeth Gore, Co-Founder and President of Hi there Alice. “This details will make certain all enterprise owners get the means they need to endure this yr, but most of all, it will present a thread of optimism in the stories that assist illuminate the remarkable diversity and benefit observed amongst this country’s business people.”
About Hello there Alice
Hello there Alice is a totally free, multichannel platform that can help corporations start and increase. With a group of more than 250,000 enterprise entrepreneurs in all 50 states and across the world, Hi Alice is creating the major network of proprietors in the place whilst monitoring data and developments to enhance the success amount for entrepreneurs. Our associates include organization small business solutions, authorities organizations, and establishments on the lookout to serve tiny- and medium small business proprietors to ensure increased revenues and encourage scale. Launched by Carolyn Rodz and Elizabeth Gore, we consider in business enterprise for all by supplying access to all proprietors, such as females, folks of coloration, veterans, and everyone with an entrepreneurial spirit. To learn far more, pay a visit to www.helloalice.com, as very well as Twitter, LinkedIn, Instagram, and Facebook.
About GGV Money
GGV Funds is a worldwide venture funds firm that invests in neighborhood founders. As a multi-stage, sector-concentrated business, GGV Money focuses on seed-to-development stage investments across Client/New Retail, Social/Electronic & World wide web, Organization/Cloud, and Frontier Tech sectors. The company was established in 2000 and manages $6.2 billion in funds throughout 13 resources. Previous and current portfolio organizations contain Affirm, Airbnb, Alibaba, Huge Commerce, Brightwheel, Frubana, Seize, Hello, HashiCorp, Houzz, Preserve, Kingsoft WPS, Khatabook, Opendoor, Peloton, Poshmark, Slack, Slice, Sq., StockX, Vedantu, Want, Xpeng, Zendesk, Zuoyebang and additional. The organization has offices in San Francisco, Silicon Valley, Singapore, Shanghai, and Beijing. Learn much more at ggvc.com and @GGVCapital.
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Source GGV Capital