Press release
Road to Recovery is Uncertain for America’s Small and Medium-sized Businesses
Harder hit than their peers in metro areas, rural businesses expect that recovery could take two years or more DES MOINES, Iowa--(BUSINESS WIRE)-- The
About this update from Principal Financial Group Inc
[{"type":"text","content":"\nHarder hit than their peers in metro areas, rural businesses expect that recovery could take two years or more\n\n DES MOINES, Iowa--(BUSINESS WIRE)--\nThe prolonged economic impacts of COVID-19 are wearing on small and medium-sized businesses as owners report more uncertainty about when and how they may recover, according to a new report from Principal Financial Group®. The Principal Financial Well-Being IndexSM highlights difficulties particularly for those businesses in rural communities.\n\nThe research tracks how the latest surge of coronavirus infections is weighing heavily on small and medium-sized businesses and impacting how they’re preparing for the near future. Principal® has been following the impact of COVID-19 on these businesses – and how they’re adapting – since last Spring, comparing results over time.\n\nSmall businesses see help on the way\n\nWhile the country grapples with the resurgence of COVID-19 cases and restrictions, survey participants are more concerned and cautious about the economic outlook than in September of 20201. 46% of businesses surveyed reported to be fully operational with about one in every four businesses saying they’re uncomfortable with their current cash flow situation. However, as they consider the next 12 months, 71% expect some level of improvement in their finances. Some attribute this cautious optimism to the vaccine and government support that may alleviate the situation.\n\nAmy Friedrich, president of US Insurance Solutions at Principal, believes that while the COVID-19 vaccine will be a big help, it isn't going to be a quick and easy fix. “With just a few weeks of the new year under our belts, it’s clear that 2021 will continue to be a bumpy road,” said Friedrich. “Small business relief programs should continue to support stability but certain sectors may need more support to see any 2021 growth. Patience, creativity, and continued resilience will likely be key traits for businesses in what could be an uneven recovery year.”\n\nGreater challenges in rural America\n\nThe most recent survey results highlight discrepancies between how rural and metro small and medium-sized businesses are being impacted by the continued economic challenges of COVID-19. Less than a quarter of rural businesses reported being fully operational compared to almost half of metro respondents. A third of...