Surveying the potential impact of the COVID-19 situation on Oregon small businesses

Hope is being able to see that there is light despite all of the darkness- Desmond Tutu

Last week, Built Oregon board members, Juan Barazza, Rick Turoczy, Stephen Green, and myself were chatting about the sudden and extreme challenges the COVID-19 Novel Coronavirus pandemic introduced to many of the businesses we know. More importantly, we struggled to conceive what we could possibly do to help from a Built Oregon perspective at such a cataclysmic time for the community we love so dearly.

Our next thought was done beats perfect. And the simpler and more rapid, the better. So we threw together a quick form to try and capture just a bit of what we were hearing anecdotally from business owners in the community. Partly, to meaningfully quantify what we were hearing but also to share that with local and state agencies and elected officials working in and around economic development. Our expectation was that folks would be so busy dealing with the immediate crisis that we would be lucky to have 100 people participate.

That assumption was wrong. Really wrong.

Even while everyone was trying to figure out how to weather this storm, Built partners, mentors, and community members stopped what they were doing to amplify the effort. And retailers, proprietors, and consumer product company leaders somehow managed to carve out time to provide the desperately needed data. In droves.

The survey was launched last Thursday, March 12, 2020. By the time it closed four days later, we had received more than 900 submissions.

These 900 voices represented Oregon product companies, retailers, service industry, event and tourism, restaurants and bars across 21 Oregon counties — more than half the counties in the state. All of these business owners took the time to fill out the form even as they are dealing with truly unimaginable challenges. And the stories and numbers they shared were, in a word, heartbreaking.

• 78% revealed weekly sales revenue losses of at least $5,000 per week, totalling a minimum estimated loss of $4.8 million statewide
• 58% expressed their primary concern as employee welfare
• 53% shared their primary concern as making lease payments
• 52% were primarily concerned with making payroll

Built board member, Stephen Green tweeted out some of the results.

What became most apparent in the survey was that the COVID-19 situation we are currently in is unlike any recent economic crisis. There is no denying that during times like 9/11 and 2008 we as a country and community were facing hard decisions and untold hardship.

But during those times we could unite together to support one another. Have meetings in person to tackle the enormous issues. Find moments of respite by having dinner or drinks with friends and loved ones. All of that is unavailable as we fight this pandemic, and so all of us are not only experiencing a myriad of economic hardships, but also an ever growing feeling of being alone and isolated. Every social norm has been upended and we truly have no idea how it will last.

It’s becoming clear with the COVID-19 situation that the unknowns keep multiplying each hour and an immeasurable emotional toll on Oregon founders and their employees.

So many unknowns that even the most resilient of founders are finding themselves in a dark place.

But where there is darkness there is always a light that glimmers, dim at times like now, but always there. And after seeing the truly sobering results of the survey we had a better understanding of what was needed. And how to take action.

What now…?

At Built Oregon, we strive to be a resource to support Oregon consumer product companies as best we can through these unheard of times. But we also recognize an obligation to leverage our network to collaborate in service of these founders, their employees, amazing Oregon businesses they’re building.

But Built Oregon is just a single small piece of the puzzle. Here are some initial thoughts that we’d like to throw out to the community after reading the survey results.

• Commercial Real Estate Companies and Independent Landlords — We cannot encourage you enough to reach out to all of your clients, especially small business and retailers, and begin an open and transparent talk around where the business stands now and in 30/60/90 days. Concerns about paying their lease was the biggest concern of many of the survey respondents. And while we know not all landlords will be able to help mitigate the financial burden, at least you will be opening up the conversation around how to be a partner.
• Banks and Financial Institutions — Similar to the above, reach out to all of your small business clients and see how you can help. Talk to them about any and all options as it relates to business financing. Be willing to offer up ideas that may not ultimately help your bottom lines.
• Local and Statewide Companies — If you have the means to do so, pick a radius around your building/headquarters and buy gift cards to local businesses to be used at a later date, and encourage your employees to do so as well. So much of the quality of life all of us talk about when it comes to economic development rests on the shoulders of our local makers, retailers, and restaurants/bars. It’s time to be there for them now.
• Individuals — Like the above, if you have the means, we are encouraging you to buy gift cards to the places you frequent. Here is an ever growing list of local companies that offer gift cards and how you can access them. In addition, the community has stepped up via sites like PDX2GO, Eater PDX, PDXSOS, and the Travel Portland Resource List. And think beyond the norm because places our ski resorts are also taking a massive hit.
• Investment Firms — Encourage your portfolio companies and investors with the means to do so to donate money to critical support organizations and also to purchase gift cards. Protect your investments by supporting the foundations upon which they are built.

The COVID-19 pandemic will not be going away any time soon. We as a community have to show up for each other in very different ways for the next 30–60 days. But the resiliency of this business community gives me hope, and need to support them should be something we all find ways to do.

For business owners, we will continue to try and be a source of information and connections to resources like this ‘Assisting Business With Coronovirus Impact’ resource page put together by the Oregon Economic Development Association.

This will be difficult. This will be trying. And this will be painful. But we will get through it. Together. As always. And we will be a better and stronger community for it.