WASHINGTON, Nov. 15, 2017 /PRNewswire/ -- An optimistic
outlook on the local economy and continued positive perceptions of
small business health has pushed the Q4 MetLife & U.S. Chamber
of Commerce Small Business Index (Index), released today, up for
the second consecutive quarter to 63.2 from 62.3 in Q3. This means
63.2 percent of small business owners have a positive outlook about
their company and their small business environment. Almost
two-thirds (61 percent) of small business owners describe the
financial health of their company as "good" this quarter, about the
same as last quarter.
Disaster Preparedness and Business Disruptions
Despite
the ever-present threat to business growth and continuity from
potential natural, technological, and other man-made calamities,
the majority of small businesses do not have official plans to deal
with the disruptions. According to the Federal Emergency Management
Agency (FEMA), nearly 40 percent of small businesses never recover
and do not reopen after a natural disaster.
In telephone interviews with 1,000 small business owners and
operators, a majority (65 percent) of small business owners said
they do not have any plans in place to cope with a natural disaster
or inclement weather and approximately seven out of 10 businesses
are not prepared to deal with a prolonged shortage of workers. Half
(50 percent) have plans to prevent theft and deter intruders and 47
percent have a plan to combat cybercrime. However, nearly
one-quarter (23 percent) have no plan in place to deal with any of
these events.
"Our goal in creating the quarterly Small Business Index was to
elevate the voice of small businesses, especially as it relates to
the challenges they are facing," said James
W. Reid, executive vice president for Regional & Small
Business Solutions at MetLife. "The number of recent disasters
across the United States
underscores the importance of planning ahead. Small business owners
told us they are not prepared for natural or man-made disasters,
and we want to make sure they will have the help they need when the
time comes."
The dozens of storms and natural disasters throughout 2017 alone
have caused billions of dollars in damage, and the impacts can be
devastating to small businesses and their local
economies. According to the NOAA National Centers for
Environmental Information (NCEI), 2017 ties the record year of 2011
for the most billion-dollar disasters for the year to date – as of
early October 2017, there have been
15 natural disaster events with losses exceeding one billion dollar each across the United States.
"Natural disasters can have a ripple effect across a community
and local economy," said Tom
Sullivan, vice president of small business policy, U.S.
Chamber of Commerce. "Small businesses account for nearly two
thirds of new jobs and half of our country's economic output. Now
more than ever we need to show the power and resilience of these
small businesses – to help them rebuild and ensure they continue to
be economic engines in their communities."
The Voice of the Small Business Owner – Catastrophic
Events
This research effort includes gathering personal
stories that illuminate the unique challenges facing today's small
businesses. In Q4, small business owners shared important insights
into the business disruptions they have faced and the importance of
disaster preparedness.
In Florida alone, FEMA
indicates that 84 percent of small businesses lost sales due to
Hurricane Irma with 24 percent temporarily being unable to open
their primary business location.
A small business owner in Florida said:
"You can never be too prepared...Even if you are okay, your
customers might not be. And the longer it takes the community to
get back on their feet the more the aftermath can wreak financial
havoc on your business."
Small business owners in Texas
said:
"Three hours. That's all it took for the worst of the
hurricane to change our world…I was one of the lucky ones.
Fortunately I was insured. Many businesses were battered much
harder than ours, and were not. In three hours those business
owners saw their livelihoods disappear. Many of them aren't coming
back. They can't."
"We're in the process of rebuilding one of our locations that
flooded after the storm, and we've learned a lot...You can never be
too prepared for a disaster and its aftermath. If you aren't it can
really take a toll on you financially."
Resources for Business Owners
U.S. Chamber Foundation Corporate Citizenship Center
202-463-3133 and ccc@uschamber.com
Disaster response resources can be found online here.
The Q4 Small Business Index also looked at small business
owners' digital usage and found that a quarter of small businesses
are not active on the internet, with one-fifth (19 percent)
reporting they do not have an online presence of any kind.
About the Small Business Index
The Index is part of a
multiyear collaboration by MetLife and the U.S. Chamber to elevate
the voice of America's small business owners and highlight the
important role they play in the nation's economy. The initiative
will produce the quarterly MetLife & U.S. Chamber of Commerce
Small Business Index; a nationwide event series, and the annual
Dream Big Small Business Awards program, which celebrates the
achievements of small businesses and honors their contributions to
America's economic growth.
Please visit www.SBIndex.us for the full results and
methodology.
About the U.S. Chamber of Commerce
The U.S. Chamber of
Commerce is the world's largest business federation representing
the interests of more than 3 million businesses of all sizes,
sectors, and regions, as well as state and local chambers and
industry associations. For more information, visit
www.uschamber.com.
About MetLife
MetLife, Inc. (NYSE: MET), through its
subsidiaries and affiliates ("MetLife"), is one of the world's
leading financial services companies, providing insurance,
annuities, employee benefits and asset management to help its
individual and institutional customers navigate their changing
world. Founded in 1868, MetLife has operations in more than 40
countries and holds leading market positions in the United States, Japan, Latin
America, Asia, Europe and the Middle East. For more information, visit
www.metlife.com.
Contact: U.S. Chamber
Bridgett Hebert
(202) 463-5682
MetLife
David Hammarström
(212) 578-2736
www.uschamber.com
@USChamber
www.freeenterprise.com
www.metlife.com/mysmallbusiness
@metlife
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SOURCE U.S. Chamber of Commerce; MetLife