It is the first in an ongoing series of reports that were planned before the virus struck – when we had anticipated this initial report would have painted a much brighter picture. The Future of Business Survey is a new source of information on small and medium-sized enterprises (SMEs). FACEBOOK & SMALL BUSINESS ROUNDTABLE United States of America May 2020 State of Small Business Report. Hopefully, there are enough alternative revenue paths to keep most SMBs running as we navigate through the pandemic - but it may well be worth exploring digital options, where possible, to align with broader consumption shifts. 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With consumers forced to shop online, many will become more accustomed to the convenience of such, aided by the simplicity of digital payments. A third of those currently operating reported that they had reduced their workforces, a worrying sign of what could be a lengthy jobs crisis. By clicking or navigating the site, you agree to allow our collection of information on and off Facebook through cookies. Small to medium businesses generally operate at very tight margins as it is, and they don't have the same safety nets that larger corporations are able to fall back on. On the other hand, when small businesses utilize email marketing—which these respondents perceive as promising as Facebook—you own your own data and your website. The new State of Small Business Report by Facebook and the Small Business Roundtable shows just how much. The State of Small Business Report, by Facebook and Small Business Roundtable, based on a survey of 86,000 owners, managers and workers in companies across the US with fewer than 500 employees, is a sobering snapshot of the struggle they are facing for survival. The data also includes 9,000 operators of “personal” businesses (i.e. This week, Facebook has published a new report to shed some more light on this, incorporating responses from over 86,000 people who own, manage or work for a small to medium-sized business. The COVID-19 pandemic isn’t just a public health emergency, it’s also an economic crisis that is hitting small and medium-sized businesses exceptionally hard. The state of small business owners outside of the USA is often even bleaker as most developing countries can't offer the support for their smallest companies that we have in the USA or in most developed countries. More businesses are exploring online connection opportunities and digital payments, which are both progressive steps towards the next generation of consumption. The state of small business owners outside of the USA is often even bleaker as most developing countries can't offer the support for their smallest companies that we have in the USA or in most developed countries. These drops often led to workforce reductions: one in three SMBs in operation reported that they had reduced staff as a result of the pandemic. Since the first shelter-in-place orders, it has been clear that many businesses were going to take a big hit, but now we can hear from the people behind the businesses just how big it is. But as noted, there are some indicators of future potential, in addition to enduring owner optimism/hope. More than a quarter said they closed between January and May this year – but that figure rose to more than 50% in some countries. For the smallest businesses – those run by the self-employed or for personal income – the situation is worse. The survey found that between January and May 2020, 26% of SMBs closed — in some countries, more than 50%. Ramon Ray is founder of SmartHustle.com. I want to thank everyone who took the time to fill out the survey. Instead, the findings bring home the scale of the crisis our economy is facing and can point us to where help is most needed. What causes a recession and what are the signs? Indeed, while eCommerce accounted for only around 16% of total US retail sales in 2019, that figure is steadily inching upwards year after year, a trend that's expected to continue. It is the first in an ongoing series of reports that were planned before the virus struck – when we had anticipated this initial report would have painted a much brighter picture. More than half are no longer operating. Instead, what we found from surveying more than 30,000 small business leaders across more than 50 countries is sobering. And nearly two-thirds of those in operation told us sales are down on the same period last year – in many cases significantly so. And for every one of those 160 million, there are people earning livelihoods and customers using products or services. COVID-19 may exacerbate this shift - and while retail is only one of the sectors highlighted here, the trend may well be indicative, which could prompt more businesses to consider their options for digital operations, meeting consumers where they're spending more and more of their time. This week, Facebook has published a new report to shed some more light on this, incorporating responses from over 86,000 people who own, manage or work for a small to medium-sized business. But, if your small business relies on Facebook, be careful: You have to use Facebook intentionally in order to see a return, and that return may not be worth the potential loss of private data. The numbers also wrap some further context around the 36 million unemployment claims in the US over the past six weeks. Of all the sectors impacted by the COVID-19 pandemic, SMBs look set to be among the hardest hit. Most of these trends are as you would expect, with high exposure businesses going into forced hibernation. Today, the scale of the challenge they face across the globe is laid bare. 1 | State of Small Business Global Report Starting a small business is a big achievement for entrepreneurs, but growing one is the bigger challenge. There are a lot of 'maybe's here, but most notably, there are very few 'No's. In fact, the stricter the restrictions are, the more female-led businesses close their doors compared to those run by men. The Global State of Small Business Report, based on the Future of Business Survey, is an ongoing research collaboration by Facebook, the Organisation for Economic Co-operation and Development (OECD), and the World Bank to survey small and medium-sized businesses around the world over a six-month period in the context of COVID-19. We’re releasing the fifth edition of the Global State of Small Business Report with findings on how COVID-19 is impacting small businesses. The State of Small Business Report, by Facebook and Small Business Roundtable, based on a survey of 86,000 owners, managers and workers in companies across the US with fewer than 500 employees, is a sobering snapshot of the struggle they are facing for survival. Facebook is publishing the Global State of Small Business Report, in partnership with the OECD and the World Bank. people who reported that they were “self-employed providing goods or services”). Organic reach is increasingly challenging, but you don’t have to use ads to benefit from Facebook marketing. Many that remain in operation face two big challenges: cash and customers. The expanded impacts of this - on employment, opportunity, local economies, etc. Above all, we hope the optimism of small business owners is well-founded and look forward to reports in the future telling a story of recovery and better times to come. So what can we do about it. To help personalize content, tailor and measure ads, and provide a safer experience, we use cookies. Apply for your grant today. The situation is worse for personal business (52% of which report shutting down), hotels, cafes and restaurants (43%) and services like wellness, grooming, fitness or other professional services (41%).". But it is interesting to note the scope of the impacts, with all sectors seeing at least some closures. Many SMBs that have remained open have experienced sales declines. 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