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

112 Pages Posted: 22 Sep 2020

See all articles by Georgij Alekseev

Georgij Alekseev

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

Safaa Amer

Facebook

Manasa Gopal

Georgia Institute of Technology - Scheller College of Business

Theresa Kuchler

New York University (NYU)

JW SCHNEIDER

Facebook

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

Facebook

Multiple version iconThere are 4 versions of this paper

Date Written: September 1, 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: COVID-19, Small business finance, small businesses, Working from Home

JEL Classification: L26, M13

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 1, 2020). CEPR Discussion Paper No. DP15290, Available at SSRN: https://ssrn.com/abstract=3696373

Georgij Alekseev (Contact Author)

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

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New York, NY NY 10012
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Safaa Amer

Facebook ( email )

1601 S. California Ave.
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United States

Manasa Gopal

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

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Atlanta, GA 30308
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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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