2021 Year-End Survey Results

By MICHAEL ANDERSON, Content Development Specialist

In January 2022, the Staten Island Chamber of Commerce issued a 2022 Year-End Survey to its members. Following another year of the COVID pandemic - during which restrictions were both lifted and reimplemented – the Chamber sought to understand the effect the pandemic continues to have on the small business community.

The survey was separated into three parts: 1) business information 2) financial health, 3) and ongoing challenges. 

Business Information

Survey respondents represented a wide range of business industries, including professional services, foodservice, retail, health & wellness, non-profit, and real estate. Respondents also reflected the wide age range of businesses in the Chamber: nearly 23% of respondents were from new businesses (0-5 years), 20.8% said they were in business for 10-25 years and 25-50 years, and 15% have been in business for 5-10 years. 

The survey also reflected the Chamber’s focus on serving small businesses. More than three quarters of respondents indicated that their current active employee count stands at 1-10 employees. Less than 4% indicated that they had more then 50 employees.

Financial Health

As we entered 2022, nearly half of respondents said their overall financial health is stronger when compared to 2020. Of businesses that indicated that financial health had improved, 40% percent stated that their financial health is slightly stronger, and 7% said their financial health is significantly stronger.

Of businesses that indicated that financial health had weakened, 23% stated that their financial health is significantly weaker, while nearly 20% claimed it was slightly weaker.    

Results were more dramatic when 2021 financial health was compared to 2019. The majority of respondents indicated that the overall financial health of their businesses was weaker, 34% experiencing a significant and more than 11% experiencing a slight decrease. 32%  of respondents indicated that overall financial health was slightly stronger, and 7% of respondents stated that health was significantly stronger than 2019.   

When looking ahead into 2022, economic outlooks remain varied.  Nearly a quarter of respondents forecasted that their economic outlook would remain the same. More than 22% foresee themselves performing moderately well, and nearly 13% foresee themselves thriving. Meanwhile, over 22% foresee themselves slightly struggling, and another 17% foresee significant struggling. Unfortunately, one respondent envisions themselves closing.

Ongoing Challenges

When asked to indicate the biggest challenges facing businesses as we head into 2022, the answer was overwhelming: staffing. The inability to attract, hire, and retain employees is the biggest challenge facing respondents across a wide range of industries.

More than half of respondents indicated that no new employees were hired in 2021, and 38% hired 1-5 new employees. 22% of respondents stated that 1-5 employees were fired or laid off. 

Looking toward 2022, 47% of businesses surveyed do not expect to hire, and 47% expect to hire 1-5 people. The vast majority of respondents (88%) do not anticipate having to lay off any employees this year.

Other challenges included mandates from state and local agencies, competition from neighboring states, and marketing.