More than half of Brooklyn’s small businesses are still struggling with the devastating financial impact of the pandemic over the past two years, according to a new study released Wednesday.
The numbers reported by the borough Chamber of Commerce were stark: 72% of small businesses continued to suffer from lower sales than in 2019, 68% suffered a decrease of customers over the same period, and staffing issues caused 25% of businesses to either close temporarily or shut down for good.
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“Optimism won’t pay the bills or ensure there is a path for continued growth for so many small businesses that at a point over the last two years probably were not sure whether they would survive another week or month,” said Randy Peters, president and CEO of the borough Chamber of Commerce.
The report reflected input from a cross-section of 185 borough businesses, from retailers to bars and restaurants, from construction companies to retailers and manufacturers.
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Keeping employees on the job presented a challenge to the businesses, with the report indicating 41% experienced labor shortages and difficulties filling job openings. One-third of the local operations were still suffering from problems paying the rent during the second year of COVID-19 restrictions.
And the report indicated 40% of those surveyed reported a reduction in their hours of operation. The Jan. 15 end of the state’s moratorium on evictions poses an additional threat to cash-strapped businesses going forward, the report noted.
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The ray of economic light in the study was the success of the outdoor dining and alcohol-to-go programs in effect last year. Nearly two-thirds of restaurants and bars saw a substantial increase in revenues thanks to the policy change.
“The only way we survived was with the seating outside,” said one business owner quoted in the report. “With each wave of the virus, everyone moved outdoors — even in the winter.”
Peers said borough businesses are seeking aid via rent relief, marketing support and additional financial grants.
“What our end-of-the-year survey definitely shows is that business owners are continuously facing ongoing challenges roadblocking the truly robust recovery New York City deserves and is capable of achieving,” said Peters.