Women and minority-owned SMBs hardest hit by pandemic: Facebook Report

According to the Global State of Small Business Report, Women-led SMBs were on average 6 percentage points more likely to be closed globally and the disparity was highest in Europe and Latin America. For instance, in Portugal and Germany closure rates were 29 and 28 percentage points higher for women-led business respectively while there was a 14-point gap in Brazil and a 10-point gap in Argentina.

Women-led and minority-owned small and medium-sized businesses (SMBs) are the hardest hit by the COVID-19 pandemic, according to Facebook's latest Global State of Small Business Report that assesses the state of SMBs and the impact of the pandemic on these businesses at the start of 2021.

The report - which surveyed more than 35,000 small business leaders across 27 countries and territories in February - investigates the effects of the pandemic on the performance of SMBs and how they have adapted to the current circumstances as well as leaders' expectations for the future.

According to the Global State of Small Business Report, Women-led SMBs were on average 6 percentage points more likely to be closed globally and the disparity was highest in Europe and Latin America. For instance, in Portugal and Germany closure rates were 29 and 28 percentage points higher for women-led business respectively while there was a 14-point gap in Brazil and a 10-point gap in Argentina.

The report also highlights the important impacts of the pandemic on minority-led businesses. For instance, in the U.S., 55 percent of minority-led businesses reported a drop in sales compared to the previous years - 6 percentage points higher than other small businesses. Almost two thirds (62%) of Black-led SMBs and 46 percent of Hispanic-led SMBs that reported a drop in sales indicated that they had dropped by over 50 percent.

At the same time, many SMBs, particularly women-led and minority-led SMBs and SMBs in middle-income countries have responded and adapted to the new business environment by building their digital capabilities. More than half of the businesses surveyed reported using digital tools to communicate with customers.

"Small businesses around the world have struggled since the start of the pandemic more than a year ago. While the roll-out of vaccines gives a reason to be hopeful, our latest Global State of Small Business Report is a timely reminder that many are still vulnerable and need support," Facebook said.