This week Facebook published its second iteration of the Global State of Small Business Report. The report analyzes the effect that COVID-19, and associated lockdowns, has had on small and medium-sized businesses (SMBs).
The first iteration, with responses from April 2020, was a snapshot of the economy and its reaction to the pandemic. The newest version of the report includes responses from over 30,000 small business owners across 50 countries. It highlights some of the major business challenges in 2020 including closure rates, sales, employment, operational challenges and financial support. It also touches on how these challenges have affected the home-life of SMB owners across the globe.
The insight gleaned from this report is applicable to almost any organization as the lasting affects of the pandemic on SMBs will influence markets for at least the next year. For example, while more than half of SMBs reported lower sales compared to 2019, the economic impact of the pandemic hasn’t been felt evenly; women and minority owned businesses have closed at higher rates than those run by men. This, alone, will likely be a significant factor in future legislative actions and ongoing financial support.
Fortunately, the report also paints a picture of resilience and creativity among American businesses. By adapting to a socially-distanced world, many been able to reopen since closing earlier in the pandemic with more than one-third of small businesses doing so by increasing their use of digital tools.
You can download the full, Global State of Small Business report here.