San Francisco: Businesses owned and operated by a single person, often called “micro businesses” or “solo-preneurs,” have been more likely to close and experience significant sales reductions due to Covid-19 compared to other small businesses that have at least one or more employees, said a global report on Thursday.
Overall, small and medium-sized businesses continue to face an environment of reduced demand and limited sales opportunities, showed the fifth edition of Facebook’s “Global State of Small Business Report.”
The data showed that 56 per cent of operational SMBs reported lower sales in September compared to the same 30-day period in 2019.
Over the five surveys to date, on average, 49 per cent of micro-businesses were female-led, compared to only 26 per cent of businesses with 10 employees or more.
The report is based on Facebook’s ongoing research collaboration with the Organisation for Economic Co-operation and Development (OECD) and the World Bank.
From surveying more than 25,000 small business leaders across 50 countries in September, the research showed that micro-businesses have closed at a higher rate than their larger peers, in part reflecting their higher concentration in industries, such as retail and services, that are vulnerable to lockdowns.