(The Center Square) – Revenues are drying up for small businesses in Illinois.
According to a survey by the small business network Allignable, Illinois is the hardest hit state in the country, with 61% of local businesses earning half or less of their monthly pre-pandemic revenues in August. That is a 24% increase from July.
The only other states with a percentage higher than 60% are Massachusetts and Minnesota. Four states that experienced a drop in the percentage of small businesses with falling revenues included Georgia, Colorado, Ohio and Michigan.
The nationwide number is up to 50%, the most significant surge in revenue problems all year.
Head researcher Chuck Casto said interest rates may be partly to blame.
“Fifty-two percent of all small business owners say that the rate hikes over the last 17 months have started to really affect them in a lot of different ways,” said Casto.
Small business owners also listed inflation and a drop in consumer spending as reasons for the drop in revenues.
The most affected industries are gyms, beauty salons and education. A staggering 64% of gym owners reported that they earned half or less of what they generated each month before the pandemic.
“We’re looking toward September and October and hopefully is a better Q4,” said Casto.
The report is based on a new poll of 4,898 randomly selected small business owners conducted from Aug. 5, to Aug. 30, 2023, along with over 35,000 responses from past studies this year.
