A new study released on Monday by WalletHub ranked Florida 16th in the States with the Most Affected Small Businesses due to Coronavirus. The study comes as small businesses, which make up the majority of all businesses in the state, continue to suffer from a statewide lockdown.
COVID-19 has dealt a heavy blow to small businesses in the U.S., with many “non-essential” businesses being forced to close its doors as a result of stay-at-home orders. Though some businesses — largely in the hospitality sector — have been able to take a hit and continue to find ways to adapt to the conditions brought on by the pandemic, most business owners have been forced to lay off staff and watch their revenue crash.
With 35 percent of small business owners in the country saying their business cannot survive more than three months in current conditions, the personal-finance website examined each state’s business climate, with Florida ranking higher than most states in the U.S.
— WalletHub (@wallethub) April 13, 2020
To identify the states in which businesses are hit hardest by COVID-19, WalletHub compared the 50 states and the District of Columbia across 12 key metrics. The data set ranges from the share of small businesses operating in highly affected industries to small-business credit conditions and the state’s small-business friendliness. Below, you can see highlights from WalletHub’s report.
Here are some of the biggest categories that contributed to Florida’s ranking.
COVID-19 Impact on Small Business in Florida (1=Most Affected, 25=Avg.):
- 27th – Share of Small Businesses Operating in High-Risk Industries
- 15th – Share of Small-Business Employees Operating in High-Risk Industries Among Total Small-Business Employees
- 38th – Share of Consumer Expenditures Related to High-Risk Industries
- 17th – Share of Businesses with E-commerce Sales Activity
- 11th – Business Vitality
- 22nd – Average Annual Federal Small-Business Funding per GDP
- 1st – Small-Business Credit Conditions
- 10th – Total Amount of Small-Business Loans per Small-Business Employee
While the state performed well in certain categories, areas such as vitality and state credit conditions contributed to Florida’s high ranking (54.17) total score. Most notably, Florida ranked 2nd in small-business financial conditions.
For the full report, click HERE.