COVID-19 Survey Results: Revenue impacts continue, but most firms favor temporary shutdowns over permanent closures

In order to assess immediate economic impacts and understand the evolving business sentiment surrounding COVID-19, San Diego Regional Chamber of Commerce and San Diego Regional EDC, in partnership with San Diego and Imperial Small Business Development Center, Downtown San Diego Partnership and National City Chamber of Commerce, developed a survey.

Three trends stood out based on what employers told us during the first four weeks of surveying. These findings are based on responses from 692 companies across the San Diego region:

  1. Few firms surveyed have closed permanently, but temporary shutdowns are increasing. Only about 1% of survey respondents have permanently closed their business, but 42% have temporarily shut down operations. This is encouraging, since the number of local business closures could have a direct bearing on the pace of recovery once the COVID crisis subsides. Businesses that have permanently closed their doors are in a range of industries, including biotech and pharmaceuticals, cleantech, food and beverage, manufacturing, professional services, and retail.
  2. Vulnerable industries expect revenue impacts to continue. The industries in San Diego most vulnerable to the effects of policies aimed at containing the spread of the virus include arts and entertainment, food and beverage, retail, and tourism. Compared to when the survey began in mid-March, more firms in these industries increasingly expect revenue impacts to occur over the next 1-3 months, rather than immediately. The perception by business owners that the economic and financial pain of the crisis could last longer than initially expected will likely be reflected as an effective moratorium on business investment and hiring in the near term.
  3. More businesses seek financial assistance and access to capital. Compared to earlier survey results, more businesses are expressing interest in financing and capital to cope with the massive revenue shortfalls associated with COVID-19.

Understanding COVID-19’s impact: an interactive visualization

Below is an interactive visualization of self-reported impacts to local employers, both in terms of employment and revenue. You can segment the data by industry, number of employees, and typical annual revenue. Additionally, please scroll over the tab to look at the breakdown of responses via zip code. Please note, this is not a representative sample – meaning we did not weight responses proportionately to the population and demographics of the region – so we strongly advise against drawing sub-regional conclusions from this data.

Respondent Profile

For up-to-date information on the survey respondents and high level results, please view the responding profile here.

  • Number of responses: 692

Resources for you

San Diego Regional EDC, San Diego Regional Chamber of Commerce, and San Diego and Imperial SBDC offer a variety of resources to help businesses.

If you would like assistance from EDC, please use this form. Once we receive your responses, we will make every effort to reach out to you within 24 hours.

Request EDC assistance

You can view last week’s COVID-19 survey results, as well as a full screen dashboard, here.
If you are looking for general information about COVID-19, please view this page.
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COVID-19 Survey Results: Impacts are vast, amidst signs of resiliency

In order to assess immediate economic impacts and understand the evolving business sentiment, we have deployed a survey with our partners at San Diego Regional Chamber of Commerce, San Diego and Imperial Small Business Development Center. The Downtown San Diego Partnership and National City Chamber of Commerce also served as survey partners. The survey will remain open for the foreseeable future so we can chart how responses change over time.

Three trends stood out based on what employers told us during the first three weeks of surveying:

  1. Impacts are vast. 379 employers plan to eliminate 14,524 jobs; 68% of their combined workforce.
  1. Small businesses are embracing remote work. More than 85% of firms with remote workers are small businesses. Overall, 42% of employers surveyed are having employees work remotely.
  1. Firms are still hiring. More than 11% of firms are still planning to fill positions. Nearly 19% of those firms still hiring are in the professional service industry.

Understanding COVID-19’s impact: an interactive visualization

Below is an interactive visualization of self-reported impacts to local employers, both in terms of employment and revenue. You can segment the data by industry, number of employees, and typical annual revenue. Additionally, please scroll over the tab to look at the breakdown of responses via zipcode. Please note, this is not a representative sample – meaning we did not weight responses operationally to the population and demographics of the region – so we strongly advise against drawing sub-regional conclusions from this data.

Respondent Profile

For up-to-date respondent information on the survey respondents and high level results, please view the responding profile here.
Other key numbers:

      • Number of responses: 681

Covid-19 Survey Results_San Diego_ April 8

Resources for you

San Diego Regional EDC, San Diego Regional Chamber of Commerce, and San Diego and Imperial SBDC offer a variety of resources to help businesses.

If you would like assistance from EDC, please use this form. Once we receive your responses, we will make every effort to reach out to you within 24 hours.

Request EDC assistance

If you are looking for general information about COVID-19, please view this page.

You can view last week’s COVID-19 survey results, as well as a full screen dashboard, here.

COVID-19 Survey Results: Immediate impacts are concentrated, severe, and hit small business & low wage workers hardest

More than 86% of businesses in San Diego expect to see revenue losses in the wake of COVID-19, according to an economic impact survey on the San Diego economy.

In order to assess immediate economic impacts and understand the evolving business sentiment, we have deployed a survey with our partners at San Diego Regional Chamber of Commerce and Imperial Small Business Development Center. The Downtown San Diego Partnership and National City Chamber of Commerce also served as survey partners. The survey will remain open for the foreseeable future so we can chart how responses change over time.

Key Takeaways

Three trends stood out based on what employers told us during the first two weeks of surveying:

  1. Impacts are concentrated by industry. Of the 360 employers planning to reduce staff, 80% are in the food and beverage or tourism industries.
  1. Impacts are immediate. Nearly 94% of employers anticipating staffing reductions and two-thirds of those expecting revenue declines expect those hits within 30 days.
  1. Impacts disproportionately affect small businesses. Employers with annual revenues below $1M anticipate average losses in income of nearly 70%, compared with an average loss of 51% for businesses earning more than $1M annually.

A majority of employers (61%) are in need of capital support. More than half of those with capital needs are the smallest of employers with fewer than 5 employees.

AN Interactive Visualization

Below is an interactive visualization of self-reported impacts to local employers, both in terms of employment and revenue. You can segment the data by industry, number of employees, and typical annual revenue

Small businesses are the backbone of our local economy and the majority of the Chamber’s membership. They account for 98 percent of businesses in the region. Our focus now more than ever is on those small businesses. We are working with local and federal officials to ensure our region’s businesses have what they need to weather this storm. We are focused on resiliency and recovery.

Jerry Sanders, president & CEO, San Diego Regional Chamber of Commerce

Respondent Profile

For up-to-date respondent information on the survey respondents and high level results, please view the responding profile here.
Other key numbers:

  • Number of responses: 642
  • Number of responses in this analysis: 642

While the impacts of COVID-19 are rippling through the entire region, the survey shows that small businesses – which are responsible for a majority of our economic growth – are disproportionately impacted. It’s a long road to recovery, and I want to remind you that EDC’s staff is here to help you access loans and grants, and work one-on-one to triage issues as they arise.

Mark Cafferty, president & CEO, San Diego Regional EDC

Resources for you

San Diego Regional EDC, San Diego Regional Chamber of Commerce, and San Diego and Imperial SBDC offer a variety of resources to help businesses.

If you would like assistance from EDC, please use this form. Once we receive your responses, we will make every effort to reach out to you within 24 hours.

Request EDC assistance

If you are looking for general information about COVID-19, please view this page.

All of us at the San Diego & Imperial SBDC Network know this public health crisis is hitting you, the small business owner, very hard. Know we are here to help. We are still providing all our services, just online. You can still visit SDIVSBDC.org and click “request counseling” to get assistance. We are here to help you apply for capital and work through the ways you now have to pivot to get through this time where we all have to be physically distant from one another.

Danny Fitzgerald, San Diego and Imperial Small Business Development Center

 

*industries include retail trade (excluding groceries and gas stations), wholesale trade, arts & entertainment, accommodation & food services.