Facebook’s State of Small Business report shares new insights on pandemic impacts

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Facebook has released an updated State of Small Business report. The study tracks and measures the ongoing impacts of the COVID-19 pandemic on SMBs.

The report includes responses from 35,189 small business leaders worldwide. This number includes 10,262 US business leaders.

With the share and effect of SMBs on the economy, the study shows the current sentiment of business owners.  

Closure rates

Facebook says SMB closure rates have dropped compared to the last survey period. It means businesses are recovering. As the vaccine rollout continues, we expect to see a resurgence after the pandemic.

facebook state of small business

“Approximately 18% of SMBs reported that they were not operational or engaging in any revenue-generating activities at the time of the survey. This represents a 12 percentage point decrease since May 2020,” says Facebook.

The number of businesses that closed permanently are less than in previous periods. Even if the improvement may not be significant, closure rates will gradually improve. And less businesses will close for good.

Most SMBs reported less overall sales performance than July last year. It means those businesses who kept afloat did not see strong sales during the most recent survey period.


Around 28% of open businesses reported higher sales than the same period last year. European and North American businesses saw significant recovery.

facebook state of small business

The race for most countries is to reach a more than 80% vaccination rate. That number will reduce the effect of the virus, as opposed to waiting for it to reach 100%.

Congesting each nation’s health system with COVID patients is the key concern. More nations have accepted that the virus will spread and exist longer.

Governments can help SMBs by limiting the impacts of COVID. With higher vaccination rates, businesses can reopen gradually.


The report also looked at the impacts on businesses owned by minorities. There were more significantly affected by the pandemic.

facebook state of small business

Digital tools

Facebook also looked at digital marketing. The study showed that more businesses have shifted to digital tools for advertising.

facebook state of small business

This will ramp up as we head into the holiday season. And more businesses will grab the chance to boost their outreach to shoppers. It may boost competition for slots on social media ads and increase auction prices.

“Approximately 69% of SMBs reported that use of digital tools has had at least one positive impact on their business operations, such as an increase in sales or customer base,” says the report.

Get more valuable insights by downloading the full State of Small Business report here.

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Author: Francis Rey

Francis is a voracious reader and prolific writer. He has been writing about social media and technology for more than 10 years. During off hours, he relishes moments with his wife and daughter.

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