BUSINESS

Small Business Are In Trouble. But They Are Not Giving Up – Says Facebook

Small Business: The smallest companies are the backbone of the global economy. Before the pandemic, they employed 60-70% of people nationwide – like restaurants, hair salons and shops. It was these points that were essential to the functioning of the economy.

Unfortunately, Covid-19 has been the biggest challenge in years. Not only the health service but also the smallest players on the market fell into financial trouble. To investigate their condition, Facebook and the World Bank and the Organization for Economic Co-operation and Development (OECD) issued the Global State of Small Business Report. The document was based on a survey of 30,000 entrepreneurs from over 50 countries. What is the result of it?

A handful of statistics

The same problems affect both large corporations and small companies. Although the advantage of the latter is greater flexibility and faster adaptation to the new reality, the smallest players simply do not have resources such as corporations. They often depend entirely on current income and previously saved income and cannot cope when difficulties arise.

And these difficulties currently do not offer much room for maneuver: consumption is falling, loans are becoming more expensive, and finding suppliers is more difficult than usual. And that’s just the tip of the iceberg. We already know that to protect themselves from bankruptcy, entrepreneurs will have to resort to wage cuts, deferred tax payments, and take out many loans. 

As the report shows, around 26% of global companies had to suspend their operations due to government decisions between January and May. One-third of them were forced to cut jobs. It was even worse with sole proprietorships – these were closed by 30%. The tourism, education and healthcare sectors are doing the worst.

What is the conclusion?

Perhaps most surprisingly, as many as two-thirds of US entrepreneurs surveyed were deeply optimistic. Most of the companies that had to close their doors said they would be able to survive in the long run.

Many owners see the current situation as being able to adapt before reopening. They indicate that they want to focus on appearing on the Internet, as currently, most of the shopping and sale of services is made online. For half of the small enterprises, min. 25% of revenues come from online channels. It follows that online marketing can play a significant role in the pandemic reality.

Also Read : Amazing Tech To Use In Real Estate

stuff In Post Team

Stuff In Post is one of the top tech news and updates websites. Our platform is a hub that provides all the trendy and accurate information on time. We also publish the latest updates on Business, Marketing, Finance, Gadgets, Software, and Apps, along with Technology.

Recent Posts

15 Cybersecurity Predictions For 2024 And Beyond

Regarding cybersecurity, 2023 has shown no signs of weakening attacks; quite the contrary. But what… Read More

2 months ago

Public Sector: When Will The Next Cyberattack Take Place?

Faced with a growing threat of cyberattacks, the Public Sector is looking for solutions to… Read More

2 months ago

​​Term insurance For Different Life Stages: A Strategic Approach

Establishing your family's financial strength is the key because life is full of both highs… Read More

3 months ago

Prepare For New Email Authentication Requirements Imposed By Google And Yahoo.

At the start of 2024, the email challenge for businesses in 2023 is not only… Read More

3 months ago

Option & Futures Trading: Full Time Profession Vs Part Time

Today, many people are getting interested in trading options and futures. These sophisticated financial instruments… Read More

4 months ago

The Future of DePINs: Opportunities And Challenges

Decentralized physical infrastructure networks (DePINs) hold immense promise for revolutionizing the way we plan, build,… Read More

4 months ago