New report sheds light on needs, challenges of small businesses amidst COVID-19

According to the report, the economic conditions for SMBs are worsening as they continue to face an environment of reduced demand and limited sales opportunities amidst the resurgence of COVID-19 cases in many countries

Small to medium-sized businesses (SMBs) are facing some of the greatest challenges due to the COVID-19 pandemic with "micro-businesses" or"solo-preneurs" facing worse outcomes throughout the COVID-19 pandemic, than their larger counterparts, according to a new report released by Facebook.

The fifth edition of the Global State of Small Business Report, 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, surveyed more than 25,000 small business leaders across 50 countries between September 23 and October 1, 2020.

According to the report, the economic conditions for SMBs are worsening as they continue to face an environment of reduced demand and limited sales opportunities amidst the resurgence of COVID-19 cases in many countries. Here are the key highlights of the report:

• Micro-businesses have closed at a higher rate than their larger peers, in part reflecting their higher concentration in industries, such as retail and services, that are vulnerable to lockdowns.
• Over the five surveys to date, on average, 49% of micro-businesses were female-led, compared to only 26% of businesses with 10 employees or more.
• Micro-businesses have been more reliant on government grants than larger SMBs, perhaps reflecting their more limited cash resources or difficulties in accessing finance.
• Overall, SMBs continue to face an environment of reduced demand and limited sales opportunities. 56% of operational SMBs reported lower sales in September compared to the same 30-day period in 2019.

For more detailed insights, check out the full report here