Report: Half of Ohio’s small businesses at risk for closing by end of quarter

(The Center Square) – More than half of Ohio’s small businesses say they are at risk of closing by the end of the first quarter without more federal help, according to a new report released by a business referral network.

Overall, 51% of Ohio’s small businesses said revenue expectations will not meet their needs by the end of March, according to the Alignable Q1 Revenue Poll. The company completed two nationwide polls last week, asking more than 10,000 small business owners their revenue needs and revenue anticipations.

The concern for small business owners in Ohio is greater than the rest of the nation and other Midwestern states. Nationally, 44% of small businesses face the potential for closure, according to the report. In the Midwest, that number is 49%.

“The reasons range from customers still being afraid to visit Main St. shops coupled with a significant rise in online shopping. Beyond a decrease in customers from pre-COVID levels, 51% of businesses tell us they have half the revenue or less coming in compared to the time prior to COVID-Era, according to Alignable’s February Road To Recovery Report,” the report said. “So, the customers they do have are spending less money, because their income has been negatively affected by COVID through layoffs, the loss of their own businesses, or their clients shutting down.”

Despite the recent ease of COVID-19 restrictions and vaccine distribution in Ohio, the businesses most at risk include restaurants and bars, retail shops, beauty salons, travel agents, caterers, massage therapists, event planners and entertainers.

Ohio Gov. Mike DeWine ended a statewide curfew this month that had been in place since November and increased the number of spectators allowed at professional sporting events this spring.

“While coronavirus vaccines represent a light at the end of the tunnel for many devastated small businesses, sadly, current vaccine distribution plans might be too little too late for some SMBs,” Chuck Casto, head of public relations for Alignable, wrote in the report.

Nationwide, the report also showed a significant percentage of federal Paycheck Protection Program funds are unclaimed as businesses cite confusion on whether they qualify, whether loans will be forgiven and if the money will be enough to overcome shortfalls.

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