Facebook has shared its latest State of Small Business Report. It shows how the COVID-19 pandemic has affected SMBs worldwide.
The social network has tracked the data since July. It collates replies from over 30,000 small business owners across 50 countries. And it stresses the key concerns and challenges they face to stay afloat and maintain operations.
The insights here are valuable for any company or organization. The effects from SMBs relates to costs in all economical aspects. And it will influence market spend and focus moving forward.
Here a few key data points and charts:
Sales volume and performance
The data for sales volume and performance shows how all sectors saw lower sales numbers compared to 2019. Around 52 percent of SMBs reported less sales in the last 30 days compared to the previous year.
It highlights the current pressure on SMBs. Many struggle to stay afloat, in hopes of a vaccine rollout and a return to the old normal.
Sales through digital channels
Lower sales have forced SMBs to find other platforms to reach their audience or meet their customers. The data shows about a 60 percent share increase of purchases made through digital channels.
The share of businesses without sales through digital channels dropped from 35 percent to 13 percent.
The swing has led to different shopping behaviors. And it will likely stay even after the pandemic. All brands should consider this.
If you are not yet into digital sales tools, you will fail to benefit from a large share of your audience. They may return to their regular shopping, but online shopping is here to stay.
The report underlines supply issues as well. Supply chains have been disrupted by several COVID-19 lockdowns and mitigations.
Not only getting people to visit in-store or your website, but also obtaining products is shackling SMBs. The data highlights the scope of the impact and its effect on the global economy.
Effect on Minorities
The report also shows how the pandemic has excessively affected minorities.
Facebook says 70 percent of small businesses in minority communities have lower sales. Non-minority communities are at 41 percent. Also, 36 percent of small businesses in minority communities closed, compared to 22 percent in non-minority communities.
This has pushed Facebook and other social networks to provide more support for Black creators and businesses.
COVID-19 hit these communities hard. And we must do what we can to support them in this situation.
The report also provides specific details on how the pandemic has affected business leaders by gender. Domestic duties impacted female workers the most.
About 87 percent of female (72 percent of male) business leaders reported domestic tasks affecting their work.
The recovery time is long and arduous.
The recovery will take timeTtime that many SMBs don’t have. So, you must be mindful of your local businesses in your purchasing decisions. Try to support them if possible.
You can download the Global State of Small Business report here.