Business Resiliency Survey

Key Findings

Just under half of respondents say their business was deemed essential by Governor Sununu's emergency order while a similar number were deemed to be non-essential and closed; a small number were deemed to be essential businesses but closed voluntarily. Larger businesses were more likely to have been declared an essential business. Those that chose to close most often did so because of health and safety concerns.

The average respondent's business has just under eighteen employees, down slightly from mid-February, when the average business had a reported average of twenty-two employees. However, a majority of respondents say their business currently employs fewer than ten people. More than four in ten respondents say their business employs fewer people than it did in February.

More than three-quarters of respondents say their business has seen its monthly revenue decrease as a result of COVID-19 and nearly half say their revenue has fallen by 50% or more. Businesses with very few employees, those in the arts, entertainment, and recreation industry or the accommodation and food service industry, and those deemed non-essential were particularly likely to lose more than 50% of their revenue. Respondents most frequently cite a decline in sales, reduced hours of operation, and being required to close as the primary factors that have impacted their business's finances, with a decline in sales clearly the most important factor.

The Payroll Protection Program was by far the most commonly utilized federal relief program; six in ten respondents say their business used it, while about a quarter utilized an Economic Injury Disaster Advance or Loan. Among state, municipal, and private relief programs, four in ten respondents used the Main Street Relief Fund and about a quarter utilized unemployment for their employees or for themselves. SELF (Self Employment Livelihood Fund) was not yet available.

Although only one in five respondents say their business had a resiliency or continuity plan prior to the COVID-19 pandemic, 73% said that resiliency planning will be very important or somewhat important to their business in the future. Larger businesses and those involved in manufacturing, health care, or social assistance are more likely to have had such a plan.

As a result of COVID-19, four in ten have maintained or brought employees back under the Payroll Protection Program. Less than a quarter have laid off and furloughed employees, while about the same number currently have employees working remotely. Also, just under half of respondents say their business purchased personal protective equipment for their employees.

Respondents also reported innovations and modifications that their business has implemented due to COVID-19, with more than a quarter having made physical changes to their location, having had employees work from home, or having started offering new products or services. About one in five say because of COVID-19 they are now collaborating with other businesses, engaging in e-commerce, or offering curbside delivery.

When asked about one successful thing their business has done in response to COVID-19, respondents most frequently mention that they changed how they deliver or produce their products, that they implemented remote or virtual work, that they protected the health of employees or customers, or that they practiced better external communication or advertising.

Maintaining sales and revenue and maintaining customers are by far the biggest concerns of respondents as their businesses recover from COVID-19; more than four in five respondents say they are very or somewhat concerned about these things. Majorities are also concerned about timely payment of bills, access to capital, supply chain disruptions, liability with following CDC and health guidelines, and cleaning the work environment. Few respondents say that they are concerned about access to COVID-19 testing, defaulting on existing loans, or working remotely as their business recovers.

Less than half of respondents are concerned about access to personal protective equipment (PPE) (46%), being forced to lay off or furlough employees (45%), energy costs (44%), bringing back employees (41%), cybersecurity (40%), delayed hiring of new employees (38%), access to COVID-19 testing (38%), or defaulting on existing loans (32%), while only 17% are concerned about working remotely as their business recovers. Thirty-five percent are very or somewhat concerned about something else as their as their business recovers.

Most businesses plan to continue the changes and innovations they made in response to COVID-19 even after the pandemic has passed; more than four-fifths of those who have implemented e-commerce, collaborated with other businesses, or offered new products or services and majorities of those who now offer takeout, have employees working from home, made physical changes to their location, or offer curbside or home delivery plan to continue doing so.

Most respondents are confident that their business will continue operating in the short term, but about one in six say they are not very or not at all confident that their business will be operating twelve months from now. In terms of the wider recovery, few respondents expect that the state economy will recover to pre-pandemic levels within three months. Respondents are more bullish in their outlook for the state economy in twelve months, as six in ten expect a recovery to pre-pandemic levels by then, but one-third are dubious that this will have occurred even within twelve months.

Overall, 1,549 businesses from 172 towns and cities responded to the survey. These businesses represented a wide variety of industries and sizes.