The Effects of COVID-19 on U.S. Small Businesses: Evidence from Owners, Managers, and Employees

108 Pages Posted: 15 Sep 2020

See all articles by Georgij Alekseev

Georgij Alekseev

New York University (NYU) - Leonard N. Stern School of Business

Safaa Amer

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Manasa Gopal

Georgia Institute of Technology - Scheller College of Business

Theresa Kuchler

New York University (NYU)

JW SCHNEIDER

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Johannes Stroebel

New York University (NYU) - Leonard N. Stern School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Nils Wernerfelt

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Multiple version iconThere are 4 versions of this paper

Date Written: September 10, 2020

Abstract

We analyze a large-scale survey of owners, managers, and employees of small businesses in the United States to understand the effects of the early stages of the COVID-19 pandemic on those businesses. The survey was fielded in late April 2020 among Facebook business page administrators, frequent sellers on Facebook’s e-commerce platform Marketplace, and the general Facebook user population. We observe more than 66,000 responses covering most sectors of the economy, including many businesses that had stopped operating due to the pandemic. The survey asks 136 questions covering topics such as changes in business operations and employment, changes in financing patterns, and the interaction of household and business responsibilities. We characterize the adjustments implemented to survive the pandemic and explore the key challenges to continue operating or to re-open. We show how these patterns differ across industry, firm size, owner gender, and other firm characteristics.

Keywords: E3, L26, M13

JEL Classification: Small Businesses, COVID-19, Working from Home, Small Business Finance

Suggested Citation

Alekseev, Georgij and Amer, Safaa and Gopal, Manasa and Kuchler, Theresa and SCHNEIDER, JW and Stroebel, Johannes and Wernerfelt, Nils, The Effects of COVID-19 on U.S. Small Businesses: Evidence from Owners, Managers, and Employees (September 10, 2020). Georgia Tech Scheller College of Business Research Paper No. 3692733, NYU Stern School of Business Forthcoming, Available at SSRN: https://ssrn.com/abstract=3692733 or http://dx.doi.org/10.2139/ssrn.3692733

Georgij Alekseev

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Safaa Amer

Facebook ( email )

1601 S. California Ave.
Palo Alto, CA 94304
United States

Manasa Gopal (Contact Author)

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

HOME PAGE: http://https://manasagopal.com/

Theresa Kuchler

New York University (NYU) ( email )

Bobst Library, E-resource Acquisitions
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New York, NY 10003-711
United States

JW SCHNEIDER

Facebook ( email )

1601 S. California Ave.
Palo Alto, CA 94304
United States

Johannes Stroebel

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Nils Wernerfelt

Facebook ( email )

1601 S. California Ave.
Palo Alto, CA 94304
United States

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