Having opened and closed several businesses, I am no stranger to failure. It is an innate component of small business and nothing to feel ashamed about. Statistically most small business do not survive. According to data from the U.S. Bureau of Labor Statistics, about 20 percent of small businesses fail within their first year. By the end of their fifth year, roughly 50 percent of small businesses fail. After 10 years, the survival rate drops to approximately 35 percent. Throw in a global pandemic, a depression and/or a natural disaster.. it skews the numbers sky high. The financial pandemic, like the virus itself, will first kill off the small businesses that are weakened by preexisting conditions like high debt to income ratios, unworkable business models, bad management.. and then older/young businesses that are just not strong enough to survive the losses. Many will blame their closure on the pandemic. Most would have failed in the long term, but this sadly hastens their demise. Feelings aside, it is simple arithmetic.
Small business have become the partisan hot potato of the moment. I would suggest you not allow yourself be pulled into that emotional argument. The politicians are writing the gospel of small business while the press are spreading that narrative like a million tiny apostles. They are vilifying some larger small businesses, who also have employees who need to feed their families, for taking the PPP. I agree that publicly traded companies should find their own funding but you make up your own mind. It’s not for anyone else to form your opinions. Small businesses are important when they fulfill a public need/desire. When that desire wanes, businesses go away.
After sixteen years in business, Sarah and I remind one another to be encouraged by the support you’ve shown for the work that we do. It is in our DNA to run our business as if at any moment it could all go away. It helps us to attach to the daily result rather than some shallow, elusive idea of success. The relationships we form with you and the things we make are everything. When I think of my friends in business, I know that good, talented, smart people will always find a way. Some places are sure to close but creative people always reinvent themselves. New places will blossom. I know this from personal experience. My enthusiasm has never diminished.
Change can be difficult. It can feel uncomfortable. Like Alice falling through the looking glass, the process of change and a different view point changes our connection to the world around us. Perhaps this new point of view will teach us things that ultimately create a better world for everyone. In the end, it won’t matter what we wanted. What will matter is what we did with the things we had.
I wish you all health and love and joy. Please donate whatever you can to your local food bank. Looking after one another with care and kindness is the most important thing we can do.
Steve