- Survey finds that small businesses in certain sectors have grown despite COVID-19 and labor challenges
- IT, education, and professional services see significant growth in recent months
- Small businesses overall have faced greater challenges in recovering from the pandemic, with an estimated 200,000 closing their doors
Summary by Dirk Langeveld
Although the COVID-19 pandemic has dealt a significant blow to small businesses and many companies are grappling with labor shortages and employee resignations, some sectors have seen significant growth in just the past couple of months.
A QuickBooks survey of more than 2,000 small business owners found that small businesses in the information sector grew by 3 percent between July and August 2021. Both the education and professional, scientific, and technical services sectors grew by 2 percent.
- Between August 2019 and August 2021, small businesses in the professional, scientific, and technical services sector grew by 5 percent while the construction and retail sectors each grew by 4 percent
- The data suggests that these companies may be beneficiaries rather than victims of the “Great Resignation,” the term for the elevated rate of employees quitting their jobs to seek opportunities elsewhere
- The most significant recovery since March 2021 has been in sectors that suffered the worst losses from the pandemic, such as food services and arts and entertainment, as vaccination efforts helped boost consumer confidence
- A Federal Reserve study found that approximately 200,000 small businesses closed during the pandemic