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U.S. economy will suffer more due to the #COVID19 coronavirus
“Social distancing” is the recommended behavior for most Americans due to the COVID19 coronavirus pandemic affecting the world today. That is, most Americans should generally avoid other people, especially crowds, and only go out for basic necessities.
You don’t have to think very hard about the effects that shuttering businesses— of having people stay away from businesses due to social distancing— will have on the economy. It won’t be good.
Most companies in the United States — 99.9% according to the U.S. Small Business Administration — are considered “small businesses.” That is, they’re a mom-and-pop operation, or run by just a handful of people, employing less than 250 people.
Out of the more than 30 million small businesses, the vast majority — 23 million — are sole proprietorships. That means it’s a single person who owns and often runs the business.
Your local hair salon is a small business, as is every corner convenience store, non-chain restaurant, your insurance agent, doctor’s office, contractor, plumber, accountant, you-name-it. If you can think of it and it’s not a part of some national chain, it’s a small business.
Small businesses don’t have large lines of credits with banks. Small businesses don’t have a lot of flexibility…
