133 Economic effects of COVID-19 on the equine industry in Florida and Louisiana

The COVID-19 pandemic has forced the equine industry and those who support it to reinvent the way business activities are conducted. The objective of this study was to evaluate the impact these challenges have had on small business owners and employees within the industry. A survey was distributed through Qualtrics in May of 2020 and a convenience sample of 299 respondents were collected. Respondents ranged in age from 20 to 84 with an average of 55.3 (SD = 14.1). The majority of respondents were female (n = 182; 60.9%). Respondents averaged 23.9 years in the equine field (SD = 14.0; Min years = 0.0; Max years = 60.0) and represented 27 states with the largest participation from Florida (n = 123; 41.1%) and Louisiana (n = 108; 36.1%). Respondents were primarily breeders (n = 113; 37.8%) or trainers (n = 92; 30.8%). Approximately half of respondents reported working in the equine industry as their primary source of income (n = 159; 53.2%). The number of employees reported ranged from 0 (volunteer organization) to 67 (M = 3.8; SD = 6.7). Many respondents reported they were able to retain all their employees through COVID-19 (n = 202; 73.7%). Most respondents reported COVID-19 had decreased their dollars earned (n = 221; 80.7%), decreased ability to travel (n = 237; 86.5%), decreased requests for services (n = 204; 74.5%) and decreased ability to work (n = 150; 58.0%). Nearly all respondents reported they had not increased prices for services offered (n = 264; 96.4%), nor had they offered sales, discounts, or other promotions (n = 229; 83.6%). Two-thirds of respondents (n = 188; 68.6%) were still able to offer services, despite the COVID-19 situation. The total income loss due to the COVID-19 pandemic (M = $54,491; SD = $151,088), however in spite of the income loss, most respondents (n = 224; 93.7%) indicated they will reopen their businesses once COVID-19 restrictions are lifted. Some respondents reported reliance on financial assistance: small business loans (n = 78; 26.1%); grants (n = 47; 15.7%); unemployment (n = 25; 8.4%); food assistance (n = 6; 2.0%). Use of the Paycheck Protection Program was specifically reported (n = 9; 3.0%). Only 44 people (18.4%) reported seeking additional employment outside the equine industry. The equine industry is no stranger to fluctuations in the economy and despite the short-term losses caused by the COVID-19 pandemic, small businesses have found a way to stabilize their livelihood and to continue to serve the industry. Due to the length of time required to fully actualize long-term effects of economic losses and the diverse segmentation of the equine industry future research should be done to evaluate the total impact of the pandemic.