Facebook has noted that businesses today are facing a big challenge. The COVID-19 pandemic is more than just a health issue. It’s also an economic crisis. To highlight these key challenges, the platform surveyed 30,000 small business owners in over 50 countries. As of 14 July 2020, Facebook publishes the Global State of Small Business Report.
First of a Series Survey Results
- First, Facebook has noted an ongoing employment crisis. Around 50% of small businesses have closed due to the pandemic. One-third of those who remained open had reduced their workforce. While the other two-thirds saw a significant decline in sales compared to last year.
- Second, the hospitality and tourism business received the hardest hit. There are 47% of hospitality businesses and 54% of tourism establishments that closed. A large part of the closure includes small businesses. This is a result of lockdowns and social distancing restrictions.
- Third, despite the sobering data, small businesses remain optimistic. Nearly 74% expect to reopen once the lockdown is lifted. For those experiencing the second wave of COVID-19, resilience prompts them to turn digital. The report shows that more than 60% of small businesses are meeting their online sales threshold. These include small businesses located in:
As a large part of the world’s population turns to online shopping, eCommerce is on the rise.
Implications for Marketers:
Small businesses are the heartbeat of Facebook communities. This Global State of Small Business Report provides a better picture of the status of small businesses today. As such, everybody has a role to play in combatting the economic crisis. Local businesses need to increase support from us.
For marketers, these data allow them to benchmark a specific industry. For now, a focus on helping hospitality and tourism is a priority. Marketers can create content to help this sector bounce back. Also, with the rise of eCommerce, marketers should prepare to promote multi-brands online. These insights can guide them in their strategy to market brands.