Report Says Only 37% of Closed Small Businesses Will Reopen Within 6 Months
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Report Says Only 37% of Closed Small Businesses Will Reopen Within 6 Months

Report Says Only 37% of Closed Small Businesses Will Reopen Within 6 Months

The Small Business Roundtable and Facebook have just released the 2021 U.S. State of Small Business Report, which provides insights into how small businesses and their employees have been impacted by Covid-19 and what new challenges are ahead. 

 

This report surveyed small businesses in April 2020, and then again in December 2020, to find comprehensive trends over time. In the first survey, a majority of small businesses (66%) thought they would open within six months. Now, findings show that only 37% of closed businesses expect to be reopened within six months. Overall, closure rates fell from 31% in April to 25% in December, but a tough road to recovery remains for America’s Main Street. 

Here are some of the report’s key findings:

  1. Small businesses in minority communities have been disproportionately affected:
    • 70% of small businesses in minority communities have reported lower sales [compared to 41% in non-minority communities]
    • Higher closure rates: 36% of small businesses in minority communities reported being closed [compared to 22% in non-minority communities]. 
  2. Small businesses have faced challenges finding workers:
    • Small businesses that have tried to hire workers have faced challenges in doing so; in December, 34% of small business owners and managers found it challenging to find adequately skilled employees. 
  3. Women business leaders faced greater challenges compared to their male counterparts at work:
    • Between April and December, the proportion of female business leaders that stated it was difficult to pay their usual household expenses increased from 34% to 55%, while there was a small decrease among male business leaders.
    • 87% of female business leaders reported domestic responsibilities impacting their work [versus 72% of male business leaders]. 
  4. Digital tools have helped small businesses close the sales gap:
    • From April to December, 34% of businesses have increased their use of online or digital tools since the pandemic began
    • The proportion of businesses making no sales through digital channels fell from 35% to 13%. 

View the report here: https://about.fb.com/news/2021/02/2020-was-challenging-for-small-businesses/

Published: February 24th, 2021

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