Hello Alice Impact Report: What COVID-19 Means for Small Business in 2021
After enduring multiple crises throughout 2020, most small business owners expect to grow in the year ahead.
According to a new Impact Report from Hello Alice and GGV Capital, small business owners are heading into 2021 with remarkable optimism.
This follows a year marked by the coronavirus pandemic, coast-to-coast natural disasters, and extreme racial tensions that ravaged the small business community with challenges posed by a declining economy, social distancing precautions, and employee anxiety and distraction, to name just a few. Recent Hello Alice Impact Reports show that these burdens have been disproportionately felt by members of the New Majority, including Black, LGBTQ+, and Hispanic and Latinx business owners.
But based on data compiled from 97,739 founders operating in all 50 states, the majority of small business owners see better days ahead.
Key data points from the report include:
- 83% believe their business will perform better in 2021 than in 2020
- 93% plan to hire in 2021 compared to 45% that laid off employees in 2020
- 75% intend to spend more on technology in 2021 than in 2020
The Impact Report supplements these numbers with qualitative stories from individuals who describe how this year’s events have impacted their lives and businesses.
“Our goal is to shine a light on the extraordinary business owners that employ more than 60% of Americans and demonstrate how they are planning to survive and thrive,” write the report’s authors in the opening letter. “We hope the personal stories inspire optimism in what’s next, and illuminate the tremendous diversity and value found among this country’s small business owners.”
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