31% of small businesses in the US have shut shop due to COVID-19

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 21, 2020, 12:29 PM UTC

Facebook and Small Business Roundtable surveyed 86,000 small business owners and 9,000 personal businesses at the beginning of the pandemic.

The research revealed that 31% of owners and managers of small businesses aren’t currently operating. Closures for personal businesses are 52%. Further, 28% of small and medium-sized businesses (SMBs) believe cash flow will be a major challenge over the next few months.

For 20% of SMBs, lack of demand for their products and services would be a challenge. Employees of SMBs reported not having paid sick leaves (74%) and paid time off (70%). 47% of SMB owners struggled to balance running a business and taking care of their household.

However, 51% of the SMBs increased online interactions with clients and 36% remained operational while selling online. Also 57% of SMBs were “optimistic” or “extremely optimistic” about their businesses.

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