The number of permanent business closings are sharply rising, revealing that the U.S. economy is struggling from the aftermath of the coronavirus pandemic.
According to data on Yelp, business closures peaked at 177,000 on April 19 and fell to 132,500 on July 10 as economies opened up. However, the number of permanent shutdowns spiked. Of the 132,500 business that closed, 72,842 were permanently shut down, accounting for 55% of all shuttered businesses.
The restaurant industry is suffering the most with more than 15,000 restaurants being permanently closed, followed by bars and nightclubs with 44% of their shutdowns becoming permanent. Retail business had 26,119 total business closures with 12,454 of these being permanent shutdowns.
The coronavirus lockdown put a great deal of stress on all businesses, but especially small businesses that operate on thin margins. In addition, many small business owners were forced to take on more debt just to keep afloat during the lockdown.
A recent survey conducted by Azlo (financial services company) found that almost half of small business owners fear they will eventually be forced to close their businesses permanently. The survey found that 47% of small business owners believed they would eventually have to close, and 41% admitted they were looking for work elsewhere.Recommended1 recommendationPublished in