For Miami-Dade businesses, the 2020 outlook is ‘somewhat optimistic’ despite pandemic
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Miami businesses are facing an economic pandemic, too
The COVID-19 crisis has shuttered retailers, service providers and hospitality workers, leaving many wondering how their companies will survive. But this is a story about more than numbers; it’s about dreams, livelihoods and damage even the savviest strategy could predict or prevent. Below, meet the owners of a handful of local businesses and learn how they are coping with the impact of the virus disruption. We will continue to follow their stories throughout this year.
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For Miami-Dade businesses, the year’s prospects are looking dim.
In a survey conducted by the Miami Herald, about half of the 352 respondents said they were “not at all optimistic” that the national or state economies would recover most of the ground lost to the pandemic by the end of 2020.
When it came to their own businesses, they were a bit cheerier. Almost 55% were somewhat or very optimistic they would recover by the end of the year.
The Miami Herald’s unscientific survey offers a snapshot of sentiment and conditions from those working day by day to strategize and revitalize an economy that went south with little warning.
While the 352 businesses that responded represent only a small fraction of the 82,000 in the county, they mirrored the county’s business landscape. More than 55% of those who responded had fewer than 10 employees before the pandemic emerged; about 80% had fewer than 50 employees.
Countywide, about 80% of businesses have fewer than 10 employees, according to a 2018 study by Florida International University.
Almost a dozen local business organizations — listed below — helped distribute the survey. Answers were collected between April 27 and May 5. The survey will be repeated every two months for the remainder of 2020.
Industries ran the gamut. About 10 percent were in hospitality and tourism. Others came from trade and logistics (10%), arts and culture (9%), real estate and design (8%), with the rest from restaurants, manufacturing, technology, retail and nonprofits.
Most of the businesses that responded to the Miami Herald were long established. More than 70% reported they have been in business 10 years or more, which means they survived the Great Recession. About 60% were not deemed “essential” businesses, meaning their doors are now closed.
The relatively good news: Only about 30% reported laying off workers. But almost 47% said they had made short-term furloughs, with plans to bring those workers back onto payrolls when conditions improve.
For now, they’re facing serious headwinds. Since March 1, when the pandemic began spreading across South Florida, almost half the respondents said their revenues have fallen more than 75%.
And the projections don’t look good: Almost half said they expect their revenues for 2020 to be down more than 50% from 2019.
Government programs have brought relief for some — but not most. While more than 75% of the businesses that responded said they were eligible for Paycheck Protection Program loans and applied for them, less than one-quarter got a loan in Round One, and fewer than 3% reported receiving a loan in Round Two. More than 50% of those who applied said they were still waiting to find out if they had been approved.
The second-round awards had not been completed as of the survey launch.
About 40% said they had requested rent abatements from commercial landlords. Of those who did ask for a break, 60% were denied.
Despite expense reductions like rent cuts, layoffs and furloughs, more than half the respondents said they expected 2020 profits to be down at least 50% for the year.
Thanks to the following organizations for helping to distribute the survey: CIC-Miami, Coconut Grove Business Improvement District, Chamber South, Coral Gables Chamber of Commerce, Greater Miami Chamber of Commerce, Greater Miami Convention & Visitors Center, ICABA, Latin Builders Association, Miami-Dade Chamber of Commerce, Miami-Dade Beacon Council and the Minority Business Chamber.
JOIN OUR WEBINAR
Join a free Miami Herald webinar exploring these findings and the Miami business future on May 20, 10 a.m. Panelists will include Felipe Basulto, chairman of the Greater Miami Chamber of Commerce and market president of TD Bank; Christina Crespi, executive director of the Miami Downtown Development Authority; Michael Finney, president & CEO of the Miami-Dade Beacon Council and Gordon Eric Knowles, president & CEO of the Miami-Dade Chamber of Commerce. Miami Herald Business Editor Jane Wooldridge will moderate the discussion. Register at hrld.us/bizsentiment
This story was originally published May 11, 2020 at 6:00 AM.
