Apr 27, 2020 - Economy

68% of small businesses say coronavirus will change their models forever

A closed restaurant in Washington, D.C.

A closed restaurant in Washington, D.C. Photo: Liu Jie/Xinhua vi Getty Images

A Goldman Sachs survey of 1,790 participants in the firm's 10,000 Small Businesses program, conducted by Babson College and David Binder Research, found that 68% said the coronavirus crisis will likely change their business models for good.

The big picture: 93% of small businesses said the virus will impact the way they operate, and 69% believe that large corporations will have a bigger advantage over them than before the pandemic.

  • 81% of surveyed small businesses are still operating, but the pandemic has forced them to cut their workforces by 37%.
  • 91% have applied for PPP loans, but 71% are still waiting for a response.
  • 85% said the virus has affected their personal finances, while 63% say their cash reserves will last less than three months.

Note: Axios qualified for a loan under the PPP program. More details here.

Go deeper: How many big companies got PPP loans

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