19% of small businesses globally were closed in July, a small improvement from the March. Small businesses led by women use digital tools at higher rates and generate more online sales revenue than small businesses led by men, according to Meta’s tenth Global State of Small Business Report.
“Digital tools have played an outsized role in generating sales for diverse-owned businesses in particular, which is critical as the report has historically revealed these communities have faced higher closure rates.”
The report says 19% of small businesses around the world are being closed, slightly down from the 20% closure rate reported in March 2022. The report comprises more than 22,000 small- and medium-sized business (SMB) leaders across 30 countries and territories.
No more than 59% of SMBs globally expect to remain in business over the next six months.
The report says 70% of diverse-led SMBs in the US reported having made at least some portion of sales digitally in the past 30 days, compared to 61% of non-minority SMBs.
As the pandemic wanes, the greatest challenge SMBs are facing now is the current state of the economy, including inflation. 19% of small businesses remain closed globally, a 1% improvement compared to when we ran this survey in January.
The highest closure rates were in North Africa and the Middle East, where 33% of SMBs were closed. The lowest closure rate was in North America, where 18% of SMBs were closed.
“As a result of these headwinds, nearly a quarter of SMBs (24%) reported increasing their prices by 20% or more in the past six months”, the report says/
“Amid the challenges, small businesses have continued to innovate and adapt to economic hardship by using digital tools: 51% of SMBs said they use digital tools to communicate directly with customers. They also use digital tools for other business activities: 43% use them to advertise and 36% use them to sell goods and services.”