One Year Later, U.S. Small Businesses, Stores and Restaurants Reach 84% Recovery Rate, According to New Fivestars Data

According to Fivestars, an integrated payment processing and marketing platform powering the largest local commerce network in the U.S., local merchants turned to a diverse array of outlets to mentally and financially cope with the burden of the pandemic. A survey of roughly 600 small business owners showed two popular sources of additional income: day trading in the stock market and the website OnlyFans. 

While business owners had to get creative to survive 2020, data from the Fivestars platform is painting a more optimistic picture for 2021. National foot traffic at local businesses is now at 84% of where it was before COVID-19 forced business closures across the nation in March of 2020, demonstrating gradual but encouraging growth. 

50% of Merchants Sought Alternative Methods of Generating Income in 2020 
As businesses took a hit in 2020, many local merchants turned to other avenues to make money, such as Uber, DoorDash, and even OnlyFans. 7% of owners turned to OnlyFans, and of those, 64% were men. 

The survey also found that despite DoorDash placing extreme financial constraints on small businesses by charging delivery fees approaching 30%, while restaurants tend to have profit margins hovering around 3-5%, 17% turned to the app for additional income. 

What’s more, regardless of the extreme volatility seen in the stock market, recently highlighted by the Gamestop saga, over 16% of small business owners turned to day trading in the stock market, with 33% of those being women.

The Pandemic Took A Toll on Mental and Physical Health
The pandemic noticeably impacted small business owners’ mental health, with 43% saying they felt isolated and 38% saying their mental health was noticeably impacted. The stress of these trying circumstances affected people in a variety of ways, including: 

• 41% saw changes in weight
• 24% said the pandemic has affected their drinking activity
• 16% said their desire to be intimate / have sex was affected
• 13% experienced hair loss 
• 10% turned to drug use

To Vaccinate or Not? 
A hot-button issue across the globe has been how governments and private businesses will handle vaccine mandates. To no surprise, small business owners are deeply divided on this topic. The survey found that 48% of owners would require their employees to receive a vaccine, and 70% of those businesses requiring a vaccine would fire employees for refusing one, amounting to 33% of all small businesses surveyed.   

Despite the many challenges faced by small business owners during 2020, 72% are optimistic that 2021 will be a better year. Vaccines are becoming more readily available, money from the $1.9 trillion Biden Administration stimulus is starting to flow through the economy, and Americans are yearning for a return to the experience economy; all signs point to Main Street America being poised to experience booming growth.  

Methodology
Fivestars analyzed millions of data points from its platform from March 2, 2020, to March 21, 2021, representing customer traffic and sales at over 14,000 local merchants nationwide. The report, titled “Main Street America: One Year Later Report,” reveals insights into the economic impact of reopening small businesses. 

Additionally, Fivestars surveyed 583 small business owners across the U.S. through Survey Monkey from March 3, 2021, to March 4, 2021. The breakdown of survey participants includes 284 men, 288 women, 6 non-binary, and 5 individuals preferring not to disclose. 

About Fivestars 
Fivestars is America’s largest local commerce network, driving over $3 billion of sales and 100 million transactions annually. Our mission is to help businesses and communities thrive by turning every transaction into a relationship. We offer vertically integrated payments, loyalty, and a marketing automation platform that brings more customers to local businesses. Founded in 2011, Fivestars is backed by Lightspeed, DCM, Menlo Ventures, HarbourVest, Salt Partners, and others. Together, let’s #LoveLocal. For more information visit: www.fivestars.com.
 

Contact Information

Maggie Philbin

PR For Fivestars

VSC for Fivestars

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