Nearly 80% of polled companies have made strategic investments to keep their businesses going through the pandemic and are confident these investments will pay off after COVID-19
Dublin, CA — April 17, 2020 — To better understand broad COVID-19 sentiment, beyond its own small and medium size business (SMB) customers, TriNet, a leading provider of comprehensive human resources, teamed with The Harris Poll on three industry-wide pulse surveys on the topic of cash flow and liquidity. Surveys were conducted April 3–12 and included more than 500 SMBs with an employee base between 5 – 249 employees.
Results of the surveys, which are the first in a series the companies will be doing together, were discussed on a webinar that was held earlier today and is available for replay on TriNet’s website. Michael Mendenhall, senior vice president, chief marketing officer and chief communications Officer TriNet, hosted the webinar and was joined by Paula Stratton, senior consultant, brand strategy and experience at The Harris Poll.
Highlights from The Harris Poll administered survey reveal that despite the current economic environment and the difficult decisions being made, SMB optimism was surprisingly resilient. In fact, nearly 80% of polled companies have made strategic investments to keep their businesses operational through the pandemic, and 76% of those who have made investments are confident these investments will pay off after COVID-19. Furthermore, 65% believe that the US economy will recover in a year.
“The resilience of this population is evident in their willingness to counter cost-cutting measures with investments in infrastructure, their employees and their communities,” said Stratton.
According to the survey, SMBs are confident that they can weather the storm in the near future. 96% of respondents were confident that under current circumstances, their business will survive one month, while 92% were confident that they could last three months. However, confidence levels begin to slip at the 6 and 12 month time frame.
The survey highlights that revenue is down for 78% of SMBs responding – and they’re looking for liquidity. When asked how much cash for operating expenses they have on hand and how long can it last:
However, SMBs being the entrepreneurs they are, are taking necessary steps to control their costs:
While awareness of government programs to help SMBs like the CARES Act and Paycheck Protection Program (PPP) is high among surveyed participants, many don’t know what it does – or doesn’t – provide. Half of respondents say aspects of the program are confusing, especially the tax implications.
To help, TriNet is diligently providing ongoing and timely information, resources and offerings to SMBs and its customers that helps them navigate the rapidly changing and complicated COVID-19 business landscape. These resources include a webinar series outlining legislative updates, COVID-19 blog series, and various offerings and benefits for customers. All of this information is also housed in the COVID-19: TriNet Business Resiliency & Preparedness Center.
SMB optimism at implementation of the PPP fell upon initial confusion, but quickly rebounded:
In order to adapt to the current situation, SMBs are making strategic operational choices, including cutting costs, in order to invest in the long-term success of their business. They’re spending less on:
SMBs are strategically investing in infrastructure, employees, and customers and community. Of the 78% of SMBs who have made strategic investments, they’ve focused on:
This is the latest installment in TriNet’s ongoing webinar series focused on business resiliency around COVID-19 in addition to its blog series.
TriNet is supporting SMBs through this current crisis, as it has throughout a number of events during the company’s 30-year history. SMBs represent the backbone of our economy and they will be the key to our nation’s economic recovery.
For this research, TriNet teamed with The Harris Poll to conduct an online survey of between 150-200 small business leaders in U.S. companies with 5 to 249 employees between April 3-6, 2020 for the first wave, April 8-10, 2020 for the second wave and April 10-12, 2020 for the third wave. Business leaders were qualified as either owners/partners or C-level executives.
TriNet (NYSE: TNET) provides small and medium size businesses (SMBs) with full-service HR solutions tailored by industry. To free SMBs from HR complexities, TriNet offers access to human capital expertise, benefits, risk mitigation and compliance, payroll and real-time technology. From Main Street to Wall Street, TriNet empowers SMBs to focus on what matters most—growing their business. TriNet, incredible starts here. For more information, visit TriNet.com or follow us on Twitter.
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