More than 100,000 small businesses have permanently shuttered within just two months as pandemic lockdowns devastated the nation’s economy landing 36 million Americans out of work, according to a new survey this week.
A team of researchers at the University of Illinois, Harvard University, Harvard Business School and University of Chicago discovered at least 2 percent of the nation’s small businesses are now gone after conducting a representative survey of more than 5,800 enterprises between May 9-11.
“The broad conclusion of our research is that a lot of small businesses which make up a big share of U.S. employment have daily limited resources and are under a fair amount of financial distress,” said Illinois economist Alexander Bartik who co-authored the study.
Limited cash and limited time for conditions to change, Bartik told The Federalist, could drive up that number significantly in the days to come. The team of economists found that the median small business with expenses exceeding $10,000 a month had only enough resources to stay afloat for two weeks. About 75 percent of those surveyed, said they didn’t have the resources to last more than two months.
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