May 3, 2021
Main Street Monday – U.S. Small Business Recovery Only Slightly Outpaces the Global Average
“Since the start of the pandemic more than a year ago, small businesses around the world have struggled, says Facebook Chief Operating Officer, Sheryl Sandberg. “While the roll-out of vaccines and the easing of lockdowns in many countries are reasons to be hopeful, our latest Global State of Small Business Report is a timely reminder that many are still vulnerable and in need of support,”
Here are some of the highlights from Facebook’s most recent survey of over 35,000 small businesses around the world:
- Globally, almost one-quarter (24%) of small businesses said they were closed as of the end of February 2021 due to the COVID-19 pandemic. However, among U.S. survey respondents only 22% said they were closed.
- Overall 54% of small businesses said they were confident in their ability to continue operating for at least 6 months if current circumstances persist, with a higher percentage (68%) among small businesses in the U.S.
- Internationally 55% of small businesses reported a decline in sales in January 2021 compared to the previous year. However, slightly less (51%) of U.S. respondents reported a decline.
- 30% of all operating small businesses and 27% of U.S. small businesses have reduced their workforces. Globally, this finding reflected improvements from May (37%) and October (38%), although in the US, improvements were more muted.
- Consistent with the global average, 51% of U.S. small businesses indicated they did not plan to rehire laid-off or furloughed employees in the next 6 months.
- Hotels, cafes, and restaurants were most likely to be affected by closures, sales declines, and workforce reductions. Globally, 25% of these businesses were closed, with 20% closed in the US.
- Women-led small businesses were on average 6 percentage points more likely to be closed globally and 5 percentage points more likely in the U.S. Nevertheless, women-led small businesses in the U.S. were more likely to see a drop in sales (7 percentage points higher than men-lead businesses and 3 percentage points above the global average)
Click here to read the full Spring 2021 Global State of Small Business Report.