The coronavirus pandemic has decimated the private sector. But was it COVID-19 or democide that results in the evisceration of small business?
Either way, most companies that have shuttered their downs since March will not reopen, according to a new Yelp report.
The September Local Economic Impact report discovered that 97,966 businesses on the website have permanently closed between March 1 and August 31, representing about 60 percent of the companies that experienced closures.
Unsurprisingly, restaurants and retail were the most impacted, and the states with the most closures and permanent closures were California, Hawaii, and Nevada.
But some businesses have been resilient, Yelp reports.
Some business sectors have been able to weather the COVID-19 storm particularly well. In general, professional services and solo proprietors as a whole have been able to maintain a relatively low fraction of closures since March 1. This group includes lawyers, real estate agents, architects, and accountants – all with only two to three out of every thousand businesses closed, as of August 31. Health related businesses in particular have been able to maintain a low rate of closures – orthopedists, internal medicine, hospitals, physicians, family doctors and OB/GYNs all have less than three closures out of every thousand businesses.
Yelp’s closure data also shows that demand for home, local and automotive services has remained robust with a far lower rate of closures compared to restaurants and retail. Towing companies, plumbers and contractors in particular have maintained a low rate of closures, with only six to seven out of every thousand businesses closed. In fact, the share of consumer interest in home and local services is up 24% between March 1 and August 31, relative to all categories on Yelp, compared to the same time last year.
Good job, government.
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