Nearly one-third of small and medium-sized businesses (SMBs) in the US have stopped operating as of April, a Facebook survey amid COVID-19 pandemic revealed on Monday.
For the smallest businesses -- those run by the self-employed or for personal income -- the situation is worse. More than half of them are no longer operating, according to the "State of Small Business Report".
"The situation is worse for personal business (52 percent of which report shutting down), hotels, cafes and restaurants (43 percent) and services like wellness, grooming, fitness or other professional services (41 percent)," said the report.
Cash And Customers: The Main Challenges
Of the businesses that report being closed, 71 percent report having closed since March 1, 2020, 18 percent closed in February and 4 percent closed in January. Many that remain in operation face two big challenges: cash and customers.
They are worried about where money is going to come from, and whether there is still demand for their goods and services
And even when looking to when things are better, less than half of owners and managers said they would rehire their former employees, showed the findings.
Working Hard And Making Adjustments
The findings are based on a survey of 86,000 owners, managers and workers in companies across the US with fewer than 500 employees.
"Still, business owners and managers are optimistic about their future. They're resilient, finding new ways to reach their customers online, making adjustments to how and when they do business, and working hard to meet their family obligations at the same time," said the report.
The survey was conducted in partnership with Small Business Roundtable, a coalition of leading small business and entrepreneurship organizations.