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Jim Magats, SVP Omni Payments
It’s been well over a year since the coronavirus began spreading around the globe, devastating economies and communities and impacting local businesses and populations. While many local economies are beginning to open back up, the impact of the pandemic continues to be felt, especially among the small business community.
As a partner to millions of small businesses around the world, PayPal understands the critical role they play in giving opportunity to the underserved, in developing communities and in driving local economic growth. To understand their needs and how we can work to move toward an inclusive recovery, PayPal partnered with Morning Consult for its second wave of the PayPal Small Business Index by Morning Consult1.
The survey of 500 U.S. small businesses2, fielded in April 2021, found increased optimism of small business owners, as compared to the inaugural index fielded in November 2020. The survey also found that even as economies begin to reopen, SMBs are looking to digitize even further, begin selling across channels, and invest in their businesses by upgrading their technology. What is now clear to SMBs, after seeing many digital businesses grow during the pandemic, is that digital payments and commerce are now table stakes, and that businesses need to enable these experiences to meet customer expectations.
The survey revealed three important themes:
While it is encouraging that small business optimism is growing and that businesses are increasingly digitizing to meet changing consumer demands, there continue to be areas where the small business community needs our support. In 2020, we saw how public-private partnership, through things like the Paycheck Protection Program, was critical in mitigating the negative effects of the pandemic and getting capital out to the businesses that needed it quickly. We also saw how partnership across the private sector, to remove or reduce fees and democratize access to new products and services for small businesses for example, helped support these businesses as they faced unprecedented challenges.
It’s clear that continued partnership will be crucial to support entrepreneurs, rebuild the small businesses sector and move toward an inclusive recovery.
You can view the full findings of the PayPal Small Business Confidence Index by Morning Consult here.
1The PayPal Small Business Index by Morning Consult is made up of an average of the net scores from the following questions:
2 Data for the survey was fielded in April 2021. To accurately reflect the voices of diverse small businesses across America, the survey sample of 500 small businesses was weighted according to the US Census distribution of SMBs across gender, ethnicity, and size of business.
3 Reading this data: Morning Consult asks five questions to small businesses in order to gauge their sentiment. The results from those five questions are then inputted into indices to represent the level of confidence about the future. They are not scored out of 100; higher numbers indicate greater confidence.
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