It’ll take more than the vast pandemic impact on businesses to bring down most entrepreneurs. Many businesses reopened following safety guidelines and have held on to the hope of bouncing back.
A new study released by GoDaddy found that 71% of entrepreneurs around the world expect their business to recover in a year. That’s 45% who say they’ll bounce back in three to 12 months. Meanwhile, 26% are even more bullish, saying they’ll recover to pre-Covid-19 levels in three months or less.
Small but tough
The optimism was observed from mostly microbusinesses that do not have rich offers to rely on, unlike big multinational companies. Of the 5,265 businesses surveyed, 90% had 10 employees or less. Half of the respondents are solo entrepreneurs.
Yet most are staying positive. Around half say that while Covid had a negative impact on their business, they are confident that their venture will continue to operate. Thirty-five percent are even more positive, saying they believe their small businesses are in a position to thrive in the future.
While 29% said that they expect their business to stay about the same size in three to five years, 26% said they expect it to grow rapidly with at least 50% growth in that period. Another 37% expect their business to grow at least 25% in that window.
Vast pandemic impact on businesses
This generally is an optimistic sentiment despite 75% saying that the pandemic cut revenues.
About a third said they had to temporarily shut down. The pandemic has also forced 34% of entrepreneurs to change how they operate their businesses.
Some 14% said they were forced to expand the business online. A tenth was forced to lay off or furlough some or all employees, and 3% had to permanently shut down.
The study also found that 68% did not receive financial assistance from the government. That means only three in 10 of businesses globally received assistance.
Adapting to thrive
Entrepreneurs showed a willingness to adapt at this time of uncertainty.
About 30% said they started or are planning to start a new business, a non-profit, or a side hustle, as a result of losing their jobs because of the pandemic.
GoDaddy found that millennials are more likely (40%) than baby boomers (12%) to pursue a side hustle.
In terms of business websites, more than half that have them said that they’re utilizing their sites more. That includes using technology for their business to become more digital.
For example, entrepreneurs are adding online stores, more content, or digital marketing to promote their business.
"The confidence is encouraging," said GoDaddy’s Melissa Schneider, vice president of global marketing operations.
“As difficult as the last six months have been, it’s inspiring to see global entrepreneurs determined to work their way back to recovery and success,” she said.
She added that the findings show the essence of entrepreneurs.
“At the heart of entrepreneurism is the ability to adapt and move forward. GoDaddy’s research shows that the owners of the world’s smallest businesses are demonstrating perseverance and resiliency as they plan for today and for their future.”