Local Businesses Shelter Online to Weather the Pandemic By Sarahni Pecson

The coronavirus pandemic forced businesses to limit their in-store capacities. Sectors that relied on customers staying in their establishment for long periods at a time, such as restaurants and cafés, suffered the most from these mandates. As federal and local entities implemented stricter rules on public spaces, companies had to find creative solutions to survive the tumultuous economy.

Meanwhile, consumers were stuck at home. More people went online to escape the monotony of daily life. They still had the desire to gather and interact—only this time, it was all done online. As social interactions shifted to the Internet, so did businesses.

It was easier for large companies to adapt. Those that had long established an online presence were more equipped to handle the swift currents of government mandates and changing consumer behaviors.

Small businesses had to navigate the same waters but with fewer resources. This held tremendous consequences for these companies. According to the CBIZ Main Street Index, about 42% of companies with 10-19 employees reported a significant impact during the pandemic. The damage was worse for smaller outfits; almost half of companies with five employees or less experienced severe impact.

Some regions were disproportionately affected by the coronavirus pandemic. A semi-annual survey by the PNC Financial Services Group assessed the impact of COVID-19 on small and mid-size businesses in Pennsylvania. The numbers painted a stark picture of the state of small businesses during the global pandemic. About 73% of small businesses in this region reported an impact due to measures that limited public spaces. Of the companies surveyed, about 40% functioned with reduced hours while 30% temporarily closed their operations. Across the state, small businesses had to change their practices to cope.

Those difficult months, however, highlighted the resiliency of some small businesses. When physical spaces and in-person interactions became regulated, these companies turned to technology. About four in 10 Pennsylvania small businesses ramped up their use of technologies since the beginning of the pandemic. This was adopted by companies across industries. Everything from shopping for groceries to ordering pizza was made available as an online service.

This was especially important for those businesses that strived to stay in compliance with COVID-19 safety measures while running at maximum capacity. Ambler Pizza, a family-owned restaurant in Ambler, Pennsylvania, was one of the small businesses in this region that embraced technology. When the coronavirus pandemic swept through their community, they closed their in-dining space and moved their entire operation online. Their customers could order pizza through their app or on their website portal.

As communities begin to open up, local economies are slow to follow. A more recent survey of small businesses shows the sustained impact of COVID-19. In February 2021, over 40% of small businesses continue to report significant or severe impacts. It looks as though small businesses are not yet out of the woods. But as local economies recover from the plight imposed on them by this pandemic, the technologies they set in place will keep them afloat for the foreseeable future.