Almost three-fourths of small KC businesses worry about meeting financial obligations
Nearly three-fourths of small businesses in the Kansas City region worry about their ability to meet financial obligations amid a global economic slowdown caused by the coronavirus pandemic, according to a survey out Monday.
Only about 13% of extra large companies, defined as those with 1,000 employees or more, share the same concern, according to a survey compiled by the Greater Kansas City Chamber of Commerce, the Kansas City Area Development Council and the Civic Council of Kansas City.
The survey gathered views of 341 companies in the Kansas City region, drawing heavily from those in Jackson and Johnson counties and spread across a range of industries. The civic and business organizations sought the views of area companies after realizing the toll the coronavirus would take on the local economy.
Companies who responded listed as their top concerns the health and well being of their employees, uncertainty about the future and fears of having to lay off staff.
“We’re all concerned about our teams and our families,” said Tim Cowden, president and chief executive of the KCADC.
More than 90% of the companies surveyed took a number of extraordinary steps to prepare for the economic slowdown from coronavirus, including limiting employee travel, eliminating in-person meetings and having employees work from home as public health officials exhort social distancing to flatten the curve of coronavirus infections.
Only about 25% of businesses surveyed said they were temporarily or permanently reducing workforce, and more than half adjusted the hours of operation.
Nearly 60% expect delays in receiving goods, with most anticipating a delay of no more than three months.
Their most critical needs are access to workforce, tax relief, short-term loans and marketing and communications help.
“Nobody taught you how to deal with this in business school,” Cowden said. “We’re going to have to learn from one another.”
The entire survey is posted online at the Chamber’s website, along with resources for businesses navigating the effects of the pandemic.
