The objective of this survey was to provide a general view of the economic loss and estimated recovery timing for area businesses affected by COVID-19. These survey results are being shared with Chamber members throughout Hampshire County; local, state and federal legislators; tourism partners; Massachusetts Office of Travel & Tourism (MOTT); Executive Office of Housing and Economic Development (EOHED); and other key stakeholders.

The results of the ten-question survey conducted via Survey Monkey represent 97 respondents in Hampshire County.  Survey respondents represented various sectors that included retail shop owners, restaurant owners, hoteliers, non-profit organizations, manufacturers, entrepreneurs, health care providers, and banking, educational, and financial institutions.

The tabs below show an Executive Summary and strategic recommendations to consider for a strong recovery from the current disruption to businesses.  The Survey Results and representative sample of verbatim comments from respondents can also be downloaded here.

On March 11, 2020, Governor Charlie Baker declared a state of emergency throughout the Commonwealth of Massachusetts to mitigate the spread of the COVID-19 outbreak.  In the days that followed and by March 23, additional orders were announced including the closing of all non-essential businesses for in-person operations.  Governor Baker also directed the Department of Public Health to issue a Stay-at-Home Advisory, effective on March 24, which emphasized self-isolation and social distancing protocols.  It was announced on March 31 that the Stay-at-Home Advisory and the non-essential business order have been extended to May 4, 2020.

These public health actions affected many businesses and created significant layoffs.  The GNCC survey was conducted March 19-26 to capture the economic impact of COVID-19.  Ten questions focused on projected revenue losses for March, April and May; percentage of employees seeking unemployment benefits; and estimated recovery time from the pandemic.  The survey also asked respondents to state the most important business challenge they are currently facing.

Key findings were as follows:

• The local economy in the Northampton area is supported heavily by a significant presence of solopreneurs, entrepreneurs, and other small businesses. Among survey respondents, half reported having five or fewer employees and over 70% reported having 10 or fewer employees.
• Respondents estimate revenue losses of $6-$10 million for March, April, and May based on 2019 revenue. May is expected to be especially hard hit ($3-4MM in losses), as many businesses generally experience a modest increase in revenue during the May time frame driven by special events in the five-college area and an accompanying influx of visitors to the area for graduations and class reunions.
• At the time of the survey, 40% of respondents indicated layoffs of 20%-100% of their organization’s workforce.
• Over one-third (37%) of survey respondents expects that it would take them 1-3 months to recover from the pandemic; 20% believes it will take 3-6 months.

The upheavals from COVID-19 have brought concerns about business closures, massive layoffs, vacation/travel/event cancellations, funding resources, and public health concerns, among many other challenging twists and turns. 

Three key themes stand out when viewing the challenges faced by businesses affected by COVID-19:

1. Financial Stability. The largest majority of verbatim comments related to financial stability, which encompassed concerns about loss revenue, increased costs, cash flow, and care for employees. Several comments also stressed rent relief and the desire for commercial landlords to share the burden during this difficult time.
2. Funding Sources. A strong desire for grants, not loans, was a common theme conveyed by small business owners. While there is overall appreciation for low-interest loans, stronger funding support and other relief solutions are greatly needed.
3. Business Model. Fear of having to permanently close is a common theme for many small business owners, especially entrepreneurs and solopreneurs. Many of the comments were from businesses that were under three years old, however, many conveyed having been around for years but now have a fear of having to close.

It is clear that businesses will face an ensuing battle as the economy regains momentum after COVID-19.  The following considerations may help businesses refine or develop their own specific winning strategies to bounce back from the economic dynamics described above and captured in the verbatim comments.

1. Business Engagement through the Chamber. Leverage GNCC’s programs and events to connect with other business owners and be part of a larger revitalization effort for the local economy. Engagement with the Chamber could provide immediate and long-term opportunities and benefits through meaningful connections, educational programs, and community integration.

1. Differentiated Value Proposition. Ensure you are competitive on all the basics – cost, quality, delivery, and customer services and support. Establish a truly differentiated and powerful value proposition that will deliver attractive returns and growth. Consistently work to make it stronger.

1. Growth Agenda. Use this time to reflect and refine your options for growth and what you might do differently to relaunch your business, either on its own or part of a larger community-wide campaign to boost the economy for a unified Grand Opening.

1. Re-entry Strategy. Understand how the reopening of the marketplace will affect your business and how you need to respond. Have the strategies and tools in place to connect with and influence your customer base. Stay in touch with them during the down period.

1. Strategic Alliances. Partner with similar businesses and form strategic alliances, where appropriate, and make your business uniquely indispensable to your partners and customers. Capitalize on the desire everyone will likely have to help the economy come back with tremendous vigor.

Businesses that can comprehensively and confidently address these imperatives will likely be in a stronger position when the economy bounces back. Meanwhile, let the Chamber help steer you toward the resources you need and revive your business opportunities.

Download PDF Survey Results