Despite Pandemic, Businesses Feel Ready to Face Challenges to Drive Growth, Lean on Modifications to Operations to Get There

Minority-owned businesses more confident than others to navigate through pandemic

WILMINGTON, Del., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Sixty-four percent of area businesses view a resurgence of COVID-19 as the greatest foreseen challenge to their business, followed by an uncertain operating environment (46%) and the cost to modify workspaces (43%) for their employees, a WSFS Bank survey of 300 businesses throughout the Greater Philadelphia region and Delaware found.

Despite these concerns, more than half of business leaders surveyed (54%) indicated they are well positioned for the future and have already experienced positive growth, largely due to modified business models, new and efficient ways to work, and pivoting toward new ways to plan for an uncertain future. Minority-owned businesses are even more bullish, with 56 percent expecting revenue increases in the next 12 months as a result of pivoting how they operate.

Facing Challenges Head-on
Businesses throughout the region noted that COVID-19 changed the way they operate, with 68 percent either reducing or modifying operations. However, one-quarter reported either no impact on their operations (17%) or even expanding operations (8%) during the pandemic.

Those that experienced growth (54%) due to operational changes credited lower operating costs (49%), more efficient marketing (46%) and paying attention to customers (42%) as the primary drivers of their growth.

“Throughout the COVID-19 pandemic, businesses have been incredibly resilient and leaned on their ingenuity and deep knowledge of their customers’ needs to weather the storm,” said Steve Clark, Executive Vice President and Chief Commercial Banking Officer for WSFS Bank. “Whether they lowered operating costs, pivoted to provide customers with products and services in new ways, or worked closely with their lenders to obtain assistance, they dug deep and did what was necessary to keep their businesses not only running, but moving forward.”

Another significant challenge faced by business leaders was the pandemic’s direct impact on workers and their families, as 53 percent of businesses cited their employees and/or employees’ families contracting COVID-19 as the greatest challenge to their business, followed by a reduction in the amount of money spent or invested in the business (50%).

Nearly one-third (29%) of businesses experienced layoffs during the pandemic, with the retail sector facing significantly more layoffs (47%). The fear of layoffs has eased slightly among business leaders, as only 21 percent anticipate future layoffs.