October 17, 2022
Main Street Monday – 30% of Small Businesses Globally Worried About Closing
”The global economy appears to be in a tenuous position. There are large inflationary pressures in many markets, supply chain disruptions and the prospect of recession for many countries and territories. At the same time, several indicators, such as employment levels, point to economic stabilization since the initial economic shocks of the COVID-19 pandemic,” reads the Meta Global State of Small Business Report series.
These are the facts:
- Small business closures remain at 19% internationally, but in North America that rate is at 18%.
- A third of small businesses in North America reported higher sales in the past 30 days at the time of the survey.
- One-fourth of small businesses across the world expect to generate half of their revenue between October and December.
- Almost half of small businesses globally reported that the costs increased for inputs and raw materials in the last 6 months, and in North America 23% reported this.
- 59% of small businesses across the globe are confident that they can remain operational for at least another 6 months, while 30% of small businesses are uncertain how long they will be able to operate given the current conditions.
- Women-led small businesses were 3% more likely to report increasing or unchanged sales (67%).
- Less women-led small businesses were 5% less likely to report decreasing sales (33%) over men-led small businesses.
- Despite this, women-led small businesses showed higher rates of closure across the globe.
- Minority-led small businesses in the United States were 8% more likely to report that their business closed, but they are 7% more likely to report rising sales.
- Compared to January 2022, the rate of Black-led small businesses that reported that their business closed dropped 10% to 31%.
- Hispanic-led small businesses saw a 4% decline in the percentage of businesses reporting closure (25%) compared to January 2022.
- 85% of small businesses in the United States reported increasing numbers of staff (18%) or stable numbers of staff (68%).