Facebook released its in-depth “State of Small Business Report” yesterday, digging deep into the devastating impact of the Coronavirus pandemic on SMBs (Small/Medium Businesses).
As of April 2020, nearly one third of all SMBs have stopped operating; for the smallest businesses, those run by the self-employed or for personal income, the situation is even more dire. More than half these companies are no longer operating. As alarming, developments have been particularly bad for women who run the majority of those businesses.
28 percent of SMBs report cash flow over the next few months is their biggest concern; 20 percent of all SMBs note lack of demand for their products and services are the greatest challenge.
Only 45 percent of SMB owners and operators reported they would rehire the same workers when their businesses reopened.
- 28 percent of SMBs report cash flow over the next few months is their biggest concern; 20 percent of all SMBs note lack of demand for their products and services are the greatest challenge.
- Only 45 percent of SMB owners and operators reported they would rehire the same workers when their businesses reopened.
- Businesses led by women are more likely to be using digital tools, particularly with online advertising (43 percent) and digital payment tools (40 percent), compared to just 37 percent and 34 percent for those led by men.
- Among reasons cited by closed businesses as to what caused the closure: 62 percent said it was necessary to comply with orders by governments or health authorities; 9 percent cited financial challenges; and 7 percent, client demand.
On a positive note, 57 percent of SMBs report they are “optimistic,” or “extremely optimistic” about the future of their businesses, with only 11 percent of operating businesses expecting to fail in the next 90 days, should present conditions persist. We’ll look at more of the report and the implications in future posts of Black Ink’s WeeklyGrind.
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