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handmadeseller.com — JULY 2020
“Right now many small businesses are struggling, and with stores closing, more are looking to bring their business online. Our goal is to make shopping seamless and empower anyone from a small business owner to a global brand to use our apps to connect with customers. That’s why we’re launching Facebook Shops and investing in features across our apps that inspire people to shop and make buying and selling online easier.”
Businesses of all sizes are feeling the impact of the pandemic, but it seems that small businesses are hit harder. In a recent survey of more than 500 businesses, SMB Group found that 75% of all small and medium-sized businesses are negatively impacted by COVID-19.
Among those 75% experiencing a negative impact, 60% anticipate that their revenues will shrink by at least 30% in the next six months.
Furthermore, 3% of small and medium-sized businesses have already closed permanently, while 43% report they have been closed temporarily, but plan to reopen. Businesses with fewer than 20 employees typically lack the capital and cash flow to stay afloat. “Those businesses had a challenge, and will experience the most extreme negative impact,” said Laurie McCabe, SMB’s co-founder and partner. “They had to learn how to serve customers in the new stay-at-home environment.”
The three industries suffering the most are personal services (including beauty, pet care, and dry cleaning), hospitality, and manufacturing. Those businesses rely on human interaction while others, such as those in retail, have been able to switch the emphasis to online ordering.
The Continued Impact of Coronavirus on Small Businesses