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Facebook report details devastation to small businesses during pandemic – Las Vegas, Nevada

Las Vegas, Nevada 2021-04-08 08:00:00 –

Las Vegas (KLAS) — A global study of the impact of the COVID-19 pandemic on small and medium-sized enterprises (SMBs) has identified damage to tourism-based businesses, especially those where close interaction with customers is important.

According to Facebook’s Global State of Small Business Report today, one-fifth of US small businesses in the travel, restaurant and hospitality industries have been closed. Globally, a quarter of such businesses have been closed.

This survey summarizes responses to a global survey of corporate owners or managers on Facebook, including 18,434 respondents in the United States. The survey was conducted in February.

In addition, 43% of hospitality SMBs that are still in business report that more than half of their employees have been dismissed. More than half (51%) outside the United States have shown that.

The report is the day after seeing the recovery of SMEs again. Report from American Express company “Kabbage”..

There are 30 million SMEs nationwide. About 90% of them have less than 20 employees and 80% have less than 10 employees.

According to a Facebook report, 51% of US SMBs that have reduced headcount have no plans to rehire workers within the next six months. More than a quarter of SMBs have reduced their workforce.

As expected, sales were sluggish, with 66% of the hospitality businesses still in business declining compared to the year-ago quarter. Only 16% showed an improvement in sales.

State-by-state breakdowns aren’t available, but Facebook has listed the three states that have hit SMEs the hardest. The highest business closure rates were in New York (31%), Pennsylvania (31%) and Massachusetts (30%).

The states with the least jobs for SMEs included New York (38%), Illinois (36%), Michigan (36%), California (33%), and Florida (32%).

The report also included information about minorities and women-owned businesses.

“While many countries are expected to deploy vaccines and ease blockades, the latest Global SME reports remind us in a timely manner that many are still vulnerable and in need of assistance.” Said Sheryl Sandberg, chief operating officer of Facebook.

“And it’s women and minority-owned businesses that are most affected by the pandemic. Remind us that whenever a crisis strikes, the most vulnerable are the most vulnerable.” Said Sandberg.

Minority-led SMEs continue to face high closure rates and declining sales.

  • 33% of black-led SMEs reported closures (compared to 18% of other SMBs)
  • 32% of minority-led SMEs (blacks, Hispanics, Asian Americans, and other races) have reported a decline in employment since the start of the pandemic (compared to 25% of other SMBs).
  • Black-led (35%) and Asian-led (34%) SMEs tended to report that they changed their advertising strategy as a result of COVID-19 compared to other SMBs (20%).

Women-owned SMEs also had lower sales than men-led companies. More than half (54%) of female-led SMBs reported a decline in sales compared to just 47% of male-led SMBs.

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