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Meta Releases New State of Small Business Report, Examining Continued Impacts of Pandemic

Meta released its latest State of Small Business Reportwhich measures the impacts of the pandemic on SMEs around the world and highlights how minority-owned businesses, in particular, are bearing the brunt of it.

Meta’s State of Small Business report series is based on an ongoing survey of nearly 24,000 business leaders in 30 countries and territories, including 5,324 business leaders. the United States. This scale provides an indicative snapshot of the current market – and while some impacts have diminished over time, it is clear from this latest update that COVID continues to cause major ripples across the industry.

First, on closure rates – Meta says that despite increased vaccine uptake and reduced lockdowns and closures, 20% of SMEs indicated that they were not operational or engage in any income-generating activity activities in January, compared to 18% in July 2021.

And as you can see from this graph, closing rates have increased in the majority of US states.

State of Small Business Meta-Report – March 2022

Of those that remained open, 30% said sales in January 2022 were higher than the same period a year ago, while 36% of U.S. SMBs reported an increase in sales.

This means that the majority of businesses are still registering average or lower results, although more people may get out of the house and go shopping. Various restrictions remain in place, so it’s not fully open yet, but clearly we still have some way to go to regain momentum in the post-COVID landscape. If we are still at this stage.

With this in mind, it is not surprising to also see that 81% of SMEs indicated that they had used digital tools in the past 30 days.

State of Small Business Meta-Report – March 2022

As you can see in this chart, 50% of SMBs globally reported using digital tools to communicate directly with customers, the most predominant use of digital tools, while 38% of SMEs in North America indicated that the majority of their sales were made digitally.

The data also shows that women and minority-led businesses continue to have a greater impact, with 44% of minority-led businesses reporting reduced sales (compared to 30% of other SMEs), while closure rates for women-led SMEs were 8 percentage points higher than that of businesses run by men.

State of Small Business Meta-Report – March 2022

Such disparity is part of the reason why social platforms continue to promote initiatives that specifically promote these businesses, as a way to address the ongoing effects and reduce the impacts of racial and gender disparity, where possible. .

Which is not always possible, and it is important to recognize these impacts within the broader framework of the pandemic and consider those affected within your own communities due to the ongoing changes.

It feels, in many ways, that we are getting back to a normal level, but the full effects of the pandemic will likely be there for years to come. And as part of that, we must do all we can to work with local businesses, while adapting to new standards and facilitating growth, whether through updated recruitment processes, new buying behaviors, etc

Meta’s comprehensive 71-page State of Small Business report includes a range of detailed information and notes on the ongoing impacts of the pandemic, and given that SMEs are the engine that powers the global economy, this worth taking a look at, and understanding where we are and thinking about what it might mean for your future endeavours.

You can download Meta’s full March 2022 State of Small Business Report Update here.