Q2 2020 Small Business Survey reveals dramatic reversal as COVID-19 takes its toll
ENGLEWOOD CLIFFS, N.J. and SAN MATEO, CA, May 4, 2020 — CNBC, First in Business Worldwide, and SurveyMonkey (Nasdaq: SVMK), a leading global survey software company, today announced the results of their quarterly CNBC/SurveyMonkey Small Business Survey.
The survey found that small business confidence has dropped to an all-time low since the survey began recording the Small Business Index in Q2 2017. The index fell from 61 out of a possible 100 in the first quarter to 48 this quarter. Fewer than one in five small business owners (18%) say current business conditions are "good," down from 56% in Q1 2020. Meanwhile, 43% say conditions are "bad," a number that had previously never been higher than 11%.
Each quarter, CNBC and SurveyMonkey poll over 2,000 small business owners aiming to measure the vitality of the American economy as well as the view from Main Street on jobs, taxes and other hot topics. In addition to measuring small business confidence nationwide, the large sample size gives CNBC the power to uncover trends by geographic region and among specific small business cohorts.
Key findings from the Q2 2020 CNBC/SurveyMonkey Small Business Survey include:
"The totality of the quarter-to-quarter change is unlike anything we've ever seen, with every marker of confidence plummeting at once," says Jon Cohen, chief research officer at SurveyMonkey. "Small business owners overwhelmingly see the pandemic as having permanent effects on the way they operate; the buoyant expectations from Q1 have been entirely upended."
CNBC Small Business Reporter Kate Rogers will reveal the results of the CNBC/SurveyMonkey Small Business Survey today, Monday, May 4th, throughout CNBC's Business Day programming. For more information on the survey including the full results and methodology and in-depth articles, go to: https://www.surveymonkey.com/curiosity/cnbc-small-business-q2-2020/.
SurveyMonkey created a unique Small Business Confidence Index (SBCI), which is a 100-point score based on responses to eight key questions. The index is calculated on a scale from 0–100 and is based on the responses to eight key questions. A zero indicates no confidence, and a score of 100 indicates perfect confidence. The second quarter of 2020′s SBCI has decreased to an overall value of 48 from 61 in the first quarter.
The CNBC/SurveyMonkey Small Business Survey was conducted using SurveyMonkey's online platform from April 21-27, 2020 among a national sample of 2,220 self-identified small business owners ages 18 and up. Respondents for this survey were selected from more than two million people who take surveys on the SurveyMonkey platform each day. The modeled error estimate for this survey is plus or minus 2.5 percentage points.
Data for this quarter have been weighted to be representative of small business owners nationally, according to business characteristics from the Small Business Administration's 2013 Statistics of U.S. Businesses and owner characteristics from the Census Bureau's 2012 Survey of Business Owners.
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SurveyMonkey is a leading global survey software company on a mission to power the curious. The company's platform empowers over 17 million active users to measure and understand feedback from employees, customers, website and app users, and the market. SurveyMonkey's products, enterprise solutions and integrations enable more than 335,000 organizations to solve daily challenges, from delivering better customer experiences to increasing employee retention. With SurveyMonkey, organizations around the world can transform feedback into business intelligence that drives growth and innovation.