The business reviewing platform Yelp has data showing that more than 80,000 small businesses listed on its site permanently closed from March 1st to July 25th. About 60,000 were local businesses, with five locations or less. The House Committee on Small Business estimates that about 110,000 small businesses have closed their doors permanently and approximately 7.5 million are at risk of doing the same. 

           Despite the name, the impact of this sector of the economy is rather large. Small businesses, or those with fewer than 500 employees, account for 44% of U.S. economic activity. Furthermore, they constitute a whopping 99.9% of all businesses in America. To use a well-worn phrase, they are the backbone of America. 

           In contrast, stocks of Apple, Amazon, Alphabet (Google’s parent company), Microsoft, and Facebook, rose 37 percent from January to July of this year. These five entities are the largest publicly traded companies in America. Combined, they now constitute 20 percent of the entire S&P market value. Apple alone’s stock market value reached $2 trillion on Wednesday, August 19th. 

           We note the wide chasm between these two groups of businesses not to broadcast doom and gloom, but to highlight the ever-increasing role of technology in our daily lives. Whether this is good or bad for society, or the soul, or kids, is, for the current discussion, besides the point; it is here to stay, and businesses must reckon with this fact if they wish to survive. 

           On the one hand, small businesses are unlikely to hemorrhage at the rate seen earlier this year, as for much of the country, lockdowns are out of the question. However, the increased foothold of the digital world in every aspect of commerce, communication, and entertainment will continue. The pandemic has shown both businesses and consumers more efficient, convenient, and productive ways to do business—information they are unlikely to forget once the pandemic is behind us.

           According to a recent survey of small business owners that have made it through to this point of the pandemic, 58 percent of entrepreneurs said that they implemented a new online delivery channel. 40 percent said they began offering a new virtual service. Presumably, many of the other business owners not in the two listed percentage points may have already been using online services, causing this survey to very likely undercount the true number of small businesses now offering a range of digital services to customers. 

           However, many companies are not up to speed on these new digital business models.  Owners and directors may have chosen to put off getting acquainted with emerging technologies, or maybe it’s just not their “thing.” Allow us to fill in these gaps for your business, help you further your mission, and transition in a new economy. 

           There are indeed encouraging signs for small businesses. 62% of Millennials say they are spending more with small businesses than they did last year, and 72% said they’re more committed to supporting them than before. Gen Z comes in a close second at 57 and 65 percent, respectively. It is certainly encouraging that the two of the youngest generations in the marketplace are trying to patronize small businesses more and more. Also, however, is worth it to note what these two groups say is important when shopping at such a business. After the “value of goods and services”, the second criterion was “online shopping and service”. 

           When asked directly, well over a majority of Millennials and Gen Z said they were more likely to support a small business with a digital presence (63 and 61 percent). This, combined with the statistic that a strong majority of these groups are spending more than ever before, strongly suggests that entrepreneurs should develop and implement a strong digital marketing strategy. The market is there, put simply, all that’s left is for you to take advantage of it.  

           Not only is a strong digital presence likely to draw these groups of young “in”, but it could also allow them a platform to advertise for your business through word-of-mouth. Indeed, 44% of Gen Z and 40% of millennials have shared or liked small business content on social media, and 38% of Gen Z and 32% of Millennials have written positive online reviews. This is a significant subset of these populations that will multiply the audience and market for your business exponentially, all without you lifting a finger.  

           We are left with the undeniable conclusion that having a well-developed online presence is vital for your business. More than likely it will be your route of viability in this time of change and uncertainty. Indeed, it could even offer you a path to expansion.