Today we’re releasing the fifth edition of the Global State of Small Business Report which sheds light on how the smallest businesses are facing some of the greatest challenges due to the COVID-19 pandemic. The new report shows that 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 compared to other small businesses that have at least one or more employees.
The fifth edition of the Global State of Small Business Report is based on our ongoing research collaboration with the Organization 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, we found 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.
- Over the five surveys to date, on average, 49% of micro-businesses were female-led, compared to only 26% of businesses with 10 employees or more.
- Overall, SMBs continue to face an environment of reduced demand and limited sales opportunities. 56% of operational SMBs reported lower sales in September compared to the same 30-day period in 2019.
Check out the full report for more insights on how small businesses are faring.