Facebook has released the latest version of its State of Small Business Report, which looks at how COVID-19 and related lockdown measures are affecting SMEs around the world.
The data, which Facebook has been tracking since July, incorporates responses from more than 30,000 small business owners in 50 countries, and highlights the key concerns and challenges each faces as they seek to maintain their operations. The information here is valuable to virtually every organization, as SMB flow effects will relate to spending in all aspects of the economy and influence spending and market focus going forward.
You can download the full report, Global State of Small Business here, but in this post, we’ll look at some of the key data points and charts.
First, on sales volume and performance: data shows that all sectors continue to post lower sales figures than in 2019, and 52% of SMEs also reported lower sales in the last 30 days compared with last year.
That underscores the constant pressure on SMEs, many of which are struggling to get ahead, hoping for a vaccine rollout and a return to relative normalcy on the horizon.
The lower performance of sales has led SMEs to seek alternative platforms to meet their customers, with a 60% increase in the share of purchases made by consumers through digital channels in the period.
As you can see in the first segment, the proportion of companies that do not sell through digital channels fell from 35% to 13%.
That shift has led to new shopping behaviors, likely to persist after the pandemic period, which is an important consideration for all brands to take into account. If you are not implementing digital sales tools, a large part of your audience is likely to be lost, even when they can go back to the usual buying processes.
The report also highlights ongoing supply issues, with supply chains disrupted by various COVID-19 mitigation measures.
So it’s not just about getting people into the store or your website, it’s also about sourcing products that hinder SMEs. The numbers underscore the broad scope of the impacts and the effect on the global economy.
The report also looks at how the pandemic has disproportionately affected minority communities.
In fact, Facebook says that 70% of small businesses in minority communities have reported lower sales, compared to 41% in non-minority communities, while 36% of small businesses in minority communities reported having closed (compared to 22%).
That has been part of the impetus behind Facebook and other platforms, which provide more support for black creators and businesses. COVID-19 has hit these communities particularly hard, and it is important that we all do what we can to support minority groups to help them stay afloat throughout the situation.
The Facebook report also provides a more specific analysis of how the pandemic has affected business leaders of each gender, with housework having the most impact on female workers.
87% of female business leaders have reported that domestic responsibilities affect their work, compared to 72% of male business leaders. That’s yet another consideration in the broader and continuing impacts of the pandemic, which, hopefully, we are now closer to moving forward.
But it will take time, time that many SMEs simply don’t have. As such, it is important to consider your local businesses and consider where you are shopping and how you can provide support when possible.
There is much more information in the full 50-page report, which includes an in-depth analysis of various impacts and sectors. Essential reading for those seeking to understand the ongoing impacts of the pandemic.
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