As COVID-19 Cases Rise and Restrictions Loom, Small Business Owners See Long Road to Recovery

Wells Fargo survey highlights tough times for business owners, their expectations for economic recovery, and payment trends

The Q4 Wells Fargo/Gallup Small Business Index score rose 12 points to 72, overall optimism levels remain nearly half of what they were in late 2019. (Graphic: Wells Fargo)

SAN FRANCISCO--()--With COVID-19 cases surging and a new wave of restrictions looming, challenges persist for small business owners as they continue to weather the pandemic according to data from the Q4 Wells Fargo/Gallup Small Business Index. While the index score rose 12 points for the second straight quarter, overall optimism levels remain just over half of what they were in late 2019.

For the third straight quarter, respondents most frequently ranked the loss of business or closings due to the impact of COVID-19 as their top concern. Attracting new business, worries about financial stability and reduced cash flow were the other top ranked concerns.

With COVID-19 numbers hitting new high-water marks across many states as we enter the important holiday season, small businesses are facing another steep round of challenges,” said Steve Troutner, head of Small Business at Wells Fargo. “Helping small businesses keep their doors open, their employees at work, and meet their customers’ needs safely is a top priority for Wells Fargo and we are deploying a wide array of tools to do so including our Open for Business Fund which is investing approximately $400 million to support small businesses.”

Business owners see long road ahead for recovery

The Q4 survey highlighted that the journey to economic recovery for small businesses is not a short one. Almost half (46%) of the respondents continued to report decreases in revenue in the last 12 months. The number of owners that felt the economy was growing climbed nine points to 29%, but 33% felt it was continuing to slow, while a combined 38% said it was in a recession or depression.

When asked about the timeline for economic recovery, 28% said it would not come until the second half of 2021, while over one third (34%) did not anticipate a recovery until after 2021. More specifically, when asked how long recovery from the impacts of COVID-19 for businesses like theirs would take, over half (55%) said it would not be until the second half of 2021 or beyond.

The pandemic has changed how many small businesses think about payment solutions

The pandemic has required many businesses to establish safer ways to engage with customers. Payments is no exception. The pandemic’s effects were particularly highlighted in the data showing that 25% of owners said they have stopped or reduced their acceptance of cash or check via in-person payment. Credit and debit cards continue to be a staple for online payments (25%) and in person payments (38%). Business owners have also heard that more customers would like the ability to make payments over the phone with a debit or credit card. This being said, cash and checks remain the largest method of payment with 74% of businesses continuing to accept them.

As we think about how to serve our small business customers amid the current COVID environment, it’s critical that we support them with new payment techniques which in turn allow them to operate safely and efficiently,” said Liz Ryan, executive vice president and interim head of Wells Fargo Merchant Services. “The data tells us that for a large number of business owners, both their current circumstances and their customer preferences are dictating a hygienic approach for payments. As we observe the current shift toward innovative solutions like contactless payments, the pandemic is accelerating the adoption of these capabilities as consumer buying behaviors and preferences change. We continue to operate with a customer-first mindset and focus our support on helping business owners not just survive but thrive.”

Despite challenges, small businesses remain resilient, and focused on deliberate investments

Though COVID-19 continues to weigh on small businesses, owners are focused on staying positive and continuing to make thoughtful decisions. Sixty-nine percent of business owners rated their company’s current financial situation as good or somewhat good, and the measure lifted to 73% when asked about 12 months from now. With the shifts and changes small businesses have had to quickly make this year, 46% reported decreases in revenue, but 53% expect revenue to increase over the next 12 months. Indicators showing a very deliberate approach to weathering the storm in 2020 include only 23% of owners acknowledging investing in their businesses this year, and only 13% reporting adding employees. Yet for the next 12 months, business owners hope to increase those numbers with 30% investing in their businesses, and 25% adding to their staff.

Owners seem to be acknowledging the challenges COVID-19 continues to bring to their business, particularly with the resurgence in cases across the country,” said Mark Vitner, senior economist with Wells Fargo. “With that said, given the myriad of factors that have affected the small business landscape, the continued recovery in optimism indicates these owners see brighter horizons ahead.”

Many Hearts. One Community.

The survey’s reflection of the long road ahead for small businesses highlights the importance of supporting them on their journey to recovery, particularly during the holiday season. To this end, during the month of December Wells Fargo will use its online and social media platforms to shine a light on small businesses and encourage people to shop locally. Additionally, Wells Fargo will deploy approximately $50 million through its Open for Business Fund to nonprofits that help small businesses stay open and to provide relief for small businesses during this time of need.

More details about Wells Fargo’s “Many Hearts. One Community.” holiday campaign can be found on the company’s social media channels and Wells Fargo Stories.

Wells Fargo/Gallup Small Business Index Scores: Q4 2019 – Q4 2020


Overall Index Score

Present Situation

Future Expectations

Q4 2020 (surveyed November 2020)




Q3 2020 (surveyed August 2020)




Q2 2020 (surveyed April 2020)




Q1 2020 (surveyed January 2020)




Q4 2019 (surveyed September 2019)




About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.92 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,200 locations, more than 13,000 ATMs, the internet ( and mobile banking, and has offices in 31 countries and territories to support customers who conduct business in the global economy. Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at | Twitter: @WellsFargo


Results for Wells Fargo/Gallup Small Business survey are based on web interviews with 600 small business owners, conducted during the period November 6-13, 2020., Beginning in Q2, 2019, interviewing formally transitioned from outbound phone data collection to a national small business web opt-in panel provider.

News Release Category: WF-SB


Manuel Venegas, 213.269.2723


Manuel Venegas, 213.269.2723