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Facebook Highlights the Atrocities of COVID-19 on Small Businesses in its New Report

Facebook-Report

The global COVID-19 pandemic has largely affected the SMBs amongst all the sectors, said by Facebook.

Small to medium businesses have tight margins and are not available to the same safety nets as that of
the larger corporations. Thus, as per the report, it is predictable that up to 7.5 million small businesses in
America fall under the list of most affected businesses category and can result in complete shutdown in
the upcoming months unless a coping mechanism to recoup the cost is figured out, and the regular cycle
of production revives.

This has further adversely affected employment, opportunity, local economies, and other factors of
production. Though the forecast is ambitious but it gives a highlight of the on ground reality.

Facebook published a new report this week in order to share more information related to this concern.
The report incorporates responses from over 86,000 people who are a part of small to medium-sized
business and production in some or the other way. This data also shares information of 9,000 operators
of personal businesses who are self-employed and provide goods or services.

The report highlights many insights of SMB, the impacts faced by them, and rising areas of opportunity
moving forward.

Some of the highlights of the report can be listed as:

Facebook’s report provides stats of the businesses that have actually been impacted by the COVID-19
lockdowns. It shows the percentage of SMBs that’s the affected in each sector which are not to operate
as of now.

Facebook COVID-19 SMB research
Though, businesses have been able to find alternates to carry forward the operations, such as working
from home and delivery efficiancies which disguises to note and record the realistic impacts of the
current lockdowns but the report tries to do justice to the on ground reality check.
Facebook claims that: “According to the survey, 31% of small and medium-sized businesses have shut
down [entirely] in the last three months. 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%).”

The percentages show that many businesses are going to shut down if not completely but for a long
period of time. The stats also reveal that over the past six weeks, 36 million people claim to be
unemployed in the US.
The going back to normal life shall be difficult if and as the economic scenarios are worsened. Though,
the majority of SMBs are trying to remain optimistic in such dreadful times and hoping for situations to
get better. There are a lot of predictions, assumptions and possibilities which are all taken under
consideration to reconstruct the falling economy.

Facebook SMB report

The report noted that Facebook has provides some statistics on the current impacts on revenue, even
for those businesses that have remained in operation. It has revealed that the year has brought a lot of
negatives than positives in the terms of growth structure. Still, a ray of hope is expected to imbibe
optimism in everyone and revive things for a better outcome.

Facebook COVID-19 SMB report
Almost all the businesses are exploring and testing digital connection opportunities and potential, which
shows a progressive start to deal with new consumption strategies and mode.

Facebook COVID-19 SMB report
It cam bring a one of the biggest long-term shift in terms of digital connection owing its roots to COVID-
19 lockdowns. Consumers shall go for digital payments options to ensure the safety and precautions.
The digital sector can boost up rapidly and generate more opportunities and spread and maximize the
businesses due to such a shift, in accordance with the consumption pattern of the next generation
consumers.
E-commerce accounted for only around 16% of total US retail sales in 2019, which is increasing with the
upcoming years.

Statista eCommerce shift

COVID-19 is the catalyst for such a shift but can also hinder and ruin its working process. Though, this
report highlights only about retail sector, the stats shall fit in to convince more businesses to switch to
digital operations.

Many businesses have been exploring their potential to support and cater online opportunities, which
could lead to help SMBs make their ways into new markets in future.

It is analysed that many alternative revenue paths exist to keep most SMBs running during the
pandemic. But the digital options should be taken under consideration for the long run consumption
shifts.

You can read Facebook’s full, 36-page “State of Small Business Report”, which includes a heap of more specific insights and data, here.

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