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Meta's report on SMBs shows increase in closure rates

Friday 25 March 2022 12:49 CET | News

Meta has released the Global State of Small Business Report, a global SMB survey of over 23,000 business leaders in 30 countries.  

The report was conducted in January 2022, when many parts of the world were seeing a surge in COVID-19 cases due to the Omicron variant. It shows that one in five small businesses reported being closed, an increase since the last global survey in July 2021.

North America saw the largest increase in closure rates, rising 7%, to 21%. The Middle East and North Africa, South Asia, and Sub-Saharan Africa regions continue to have the highest closure rates, although they have remained stable.

The small business surveys have consistently found that women and minority-led businesses have been hit the hardest during the pandemic. In the US, both categories saw a 6% increase in closures – to 25% for women-led businesses and 26% for those led by minorities. Black-owned businesses also faced drops in sales. Just over half said sales were down in 2021, compared to 36% of other US small businesses.

Despite the increased closure rates, employment remained stable. Approximately 11% of businesses reported that employment had increased, the same percentage as in July 2021, with gains in East Asia and the Pacific, South Asia, and Sub-Saharan Africa.

A quarter of the businesses surveyed said they were currently digital-only. And four in every five businesses said they had used digital tools in the last 30 days. More than a third of small businesses that made at least 50% of their sales digitally also reported improved sales overall.


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Keywords: report, SMEs, survey, COVID-19, digitalisation
Categories: Payments & Commerce
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Countries: World
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