One piece of this is how many businesses will go out of business.
My cousin, who owns a small business, suggested that 50-75% of small businesses might go under based on a couple of months of being unable to earn money. I don’t know enough specifics to dissect exactly what that means but just to name some more specific questions that probably have answers:
How much operating runway do most small businesses have?
How much of that determination is based on rent, and how likely is it that they will have rent payments suspended for a month or more?
How much of that is from payroll, and how much lower will payroll costs be? Presumably much lower for businesses that are not operating at all.
Will employees return to work without difficulty in general?
What will be provided in terms of government assistance?
If a large number of small businesses go under, this will have significant downstream effects on the economy.
Will business lot rents go down?
Where will business owners transition for work?
Will some job markets be flooded? Which ones? How much will this vary by area?
One piece of this is how many businesses will go out of business.
My cousin, who owns a small business, suggested that 50-75% of small businesses might go under based on a couple of months of being unable to earn money. I don’t know enough specifics to dissect exactly what that means but just to name some more specific questions that probably have answers:
How much operating runway do most small businesses have?
How much of that determination is based on rent, and how likely is it that they will have rent payments suspended for a month or more?
How much of that is from payroll, and how much lower will payroll costs be? Presumably much lower for businesses that are not operating at all.
Will employees return to work without difficulty in general?
What will be provided in terms of government assistance?
If a large number of small businesses go under, this will have significant downstream effects on the economy.
Will business lot rents go down?
Where will business owners transition for work?
Will some job markets be flooded? Which ones? How much will this vary by area?
Source: NPR https://www.npr.org/2020/03/20/819293063/our-covid-19-indicators-of-the-week