Business

How Hand-outs Hurt Small Businesses

This past year has posed many challenges for small businesses nationwide. Closures, lockdowns, social distancing, plexiglass, etc. all introduced challenges for business owners to work around.

If your doors weren’t closed and bills going unpaid, you were struggling to change the way you conducted everyday business to meet the demands of local officials and abate customer fear.

How Hand-outs Hurt Small Businesses

The biggest challenge from the onset of the lockdown was delivering a product or service to the customer. With so many mandates to work around, ranging in severity from one state to another, businesses were spending more money to meet compliance requirements at a time when less money was coming in.

Now that more and more businesses are fully open, the new challenge is getting workers to fill available positions. When the government is awarding employees more money to stay at home, employers are finding people don’t want to work.

Remote Access

Conferencing tools and SaaS software for small businesses were absolute musts for surviving the transition to remote working. Many will continue in popularity given the added benefit of saving money on transportation for meetings and commuting.

In-office staff may alternate days to maintain social distancing requirements. But, as offices open up again and more staff are needed, finding qualified candidates is a challenge.

A recent survey by Small Business Trends indicated 54% of businesses are having trouble filling positions because of the increase in unemployment benefits.

Take Tina, for example, who was earning upwards of $70,000 as a bartender in NYC when the pandemic hit. She relocated to Florida and continued to collect the higher unemployment benefits offered by the state of New York. Also she has been earning $800 week for the past fifteen months.

She was also provided a debit card preloaded with $300/month to use on food.

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About the author

Alena Sham