![]() However, even as states shifted and eventually eased lockdown measures, businesses adapted to new business models, working arrangements, and changing consumer demands, streamlining operations and keeping B2B expenditures low in order to recoup losses caused by the initial downturn. ![]() At the time, businesses were uncertain how long they would have to operate under such conditions and continued to reduce overall spending in departments deemed to be non-essential for operational continuity, with marketing taking a significant hit during this period. Spending decreased across industries because many organizations shut down altogether or shifted to a remote work model and focused on retention rather than business growth. The quarantines and shutdowns due to the coronavirus had a significant impact at the start of the pandemic on business-to-business expenditures. Business Revenue and Budgetĭespite a majority of respondents’ annual revenue remaining at less than $500,000 both pre-COVID and now in 2022, 57% of small business owners still cut back on their business spending during the pandemic. In addition to the data from our Pollfish survey, we’ve pulled in real-world responses from boots-on-the-ground small business owners to the same questions to give our readers perspective on what our survey revealed about spending practices throughout the pandemic experience. Our findings will address the following aspects: In order to provide perspective, some of these questions queried business leaders as to their pre-COVID business practices and their current expenditure practices in 2022. The survey also addressed whether small businesses shifted their workforce into remote work arrangements or secured rental spaces rather than waiting for office buildings to reopen for use. In this survey, UpCity explored questions related to small business consultancy that revolve around budget allocations and adjustments throughout the pandemic, changes to employee benefits in response to shifting workplace arrangements, and whether businesses continued handling projects in-house or chose to start outsourcing projects to streamline operations. With this goal in mind, UpCity used Pollfish to conduct a survey of 600 small business owners, with an even mix of respondents sourced from the United States and Canada. This has been especially difficult given that there have been several distinct waves of outbreaks, and responses to those outbreaks have been as varied as the symptoms of the virus itself, resulting in instability in economic activity across all demographics and geographic regions.Ĭommentary across numerous channels over the last year shows us that there was a distinct downturn in business spending throughout the various quarantine and business closure periods and even during the recovery period, but we wanted to be able to provide our readers with quantified insight into small business spending in general. Small Businesses Forced to Spend Their Way to Survival Throughout the COVID-19 PandemicĪs we enter into the third consecutive year of the COVID-19 Pandemic, we’re still trying to determine the impact of the associated business disruptions in both the short-term and long-term fiscal health of businesses across all industries in previous years.2022 Monthly New Office Space Rent Expense.Increased company culture/employee spending in 2022.34% of those businesses also expanded their health benefit options, including mental health benefits. ![]() 34% of small businesses increased their employee’s pay since the COVID-19 pandemic.55% of respondents still have 2-5 employees in 2022 with a 7% increase. 48% of small businesses had 2-5 employees pre-COVID.27% of respondents now focus their budgets most heavily on operations management in 2022. 28% of small business owners allocated most of their budgets to marketing and advertising pre-COVID.Did You Cut Back on Spending Since Spring of 2020?.
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