Facebook Provides New Perspectives into COVID-19's Impact on Small Businesses

Facebook has prepared a report which indicates the effects Covid-19 had on small businesses across the world. Since July 2019, Facebook has been monitoring and collecting the data which includes responses from more than 30,000 small businesses owners in 50 countries, and shows the major issues and obstacles they face as they try to keep their businesses running.

The information is useful to almost every company because the flow-on impact from small businesses can affect investment in nearly every sector of the economy, as well as retail expenditure and focus on the future. According to Facebook, negative effects on SMBs may have broader macroeconomic implications. 75 percent of jobs in each sector is related to small business and is getting affected by the lockdown. As a consequence, this is an important and powerful factor.

To begin with, in terms of overall operational impacts, Facebook reports that 24 percent of SMBs respondents said that they were not working in February 2021 which is up from 16 percent in October 2020. SMBs in Europe have been amongst the fastest growing, which corresponds with tight lockdown policies in a number of EU countries.

Although, vaccine has been launched in some areas and is under process, and it seems like the pandemic is coming to an end, the economic consequences will be far-reaching. As shown by the figures, the long-term consequences are still bringing instability and financial pressure in many areas. More than half of the SMBs that are still working announced a drop in sales in January 2021 compared to the same time last year. As a result, 30% of SMBs - including 27% of US SMBs - have decreased their staff numbers.

Once more, the ramifications will be felt around the board, as people will be left with no money to spend which leads to less transactional activity in all industries. However, the vaccine is now available still the aftermaths of Covid-19 will be felt for sometime. It is not possible to completely cover the impact of Covid-19 in individual sectors.

Women and minority-led companies have been deeply troubled by the pandemic, according to Facebook. The statistics highlight the importance of taking specific steps to help women and minority-owned companies, that's why Facebook and other social media sites have introduced a number of efforts in this area.

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