Global State of Small Business - A look at the beginning of the recovery in 2021, with insights on women-led and minority-led SMBs - About Facebook
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SEPTEMBER 2021 REPORT Global State of Small Business A look at the beginning of the recovery in 2021, with insights on women-led and minority-led SMBs
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Executive Summary
There are signs that a global recovery from Asia (26%) have fallen more slowly and remain
the COVID-19 pandemic may be underway. consistently higher than in other regions.
Vaccination programs and the easing of
restrictions have provided causes for hope for Similarly, the proportion of SMBs reporting
many after an unprecedented health crisis and higher sales in the past 30 days compared to a
economic shock. However, many countries face year ago has increased consistently, from 16%
new or ongoing waves of COVID-19, driven by in May 2020 to 28% in July 2021. However, a
the Delta variant, and small and medium-sized majority (52%) continue to report lower sales.
businesses (SMBs) in particular continue to face The share of SMBs reporting a reduction in
many unique challenges. employment due to the pandemic has also
risen since the start of 2021, from 30% to 36%.
To this end, the Global State of Small Business
Report series aims to provide information that
can help us better measure and understand the
health of SMBs and the SMB economy across
the globe. In this edition, we focus on the extent
of COVID-19’s impact on SMBs and, in doing so,
provide information that can facilitate policy 18%
discussions about how to best support SMBs.
This latest iteration delivers insights from a
survey in July and August 2021 of more than
35,000 SMB leaders across 30 countries and
Closure rates among SMBs have fallen
territories. It investigates the effects of the
6 percentage points globally, down from
pandemic on these businesses’ performance,
24% to 18% since the start of 2021.
how they have adapted to the current
circumstances and SMB leaders’ expectations
for the future. It also looks at the impacts of
the pandemic on women-led SMBs globally and
minority-led SMBs in the US.
The study finds a clear continuation of many
challenges but also some signs of a recovery
52%
among SMBs. Closure rates among SMBs have
fallen from 24% to 18% globally since the start
of 2021, with this fall reflected in the majority
of countries. However, the global closure rate Approximately 52% of SMBs worldwide
remains higher than in October 2020 (16%), continue to report lower sales, despite
and rates in Sub-Saharan Africa and South closure rates being down.
i
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
There are signs of uneven impacts and Despite this, women-led SMBs were less
recoveries within these broader trends. SMBs likely than men-led SMBs to report a drop in
in Europe and North America reported more employment as a result of the pandemic, with
positive results overall, in line with the relative 33% reporting a reduction compared to 36% for
strength of their recoveries. This is reflected in men-led SMBs.
analyses of SMB outcomes and factors such as
vaccination rates and measures of government Approaching the end of 2021, challenges clearly
effectiveness. SMBs in countries with higher remain, but there are also signs of adaptation
vaccination rates were less likely to report a and recovery. Lack of demand and cash flow
reduction in sales compared to a year ago and a continue to be the most reported challenges,
reduction in employment due to the pandemic. with 35% and 33% of respondents citing
The same is true of countries that score higher these as concerns, respectively. However,
on government effectiveness measures.1 this represents a decline from 2020, when up
to 47% and 39% of SMBs, respectively, cited
Outcomes also vary within many countries these as challenges. The survey also shows
between different groups of SMBs. In the US, an increasing share of SMBs using digital
closure rates fell to 16%, and only 34% of SMBs tools, with 88% indicating they were doing
reported lower sales than a year ago. However, so compared to 81% at the start of 2021.
minority-led SMBs in the US were at least Approximately 86% of SMBs indicated that
50% more likely to report: being closed (20% they expect to run their business operations at
compared to 13% for other SMBs), a reduction least partly using digital tools in the future. The
in sales in the most recent 30-day period year holiday season may also represent a significant
on year (44% compared to 29%) and reduced opportunity for SMBs in some countries. In a
employment as a result of the pandemic (32% subset of 14 countries and territories that were
compared to 20%). Hispanic-led SMBs in the surveyed about the upcoming holidays, over
US had the highest rate of closures at 24%, a fifth of SMBs indicated that they expected
followed by Black-led SMBs at 22%. Asian-led the final 3 months of 2021 to represent the
SMBs were the most likely to report reduced majority of their sales for the year. However,
employment (38%). Minority-led SMBs were only 13% of SMBs indicated that they would
more likely to expect changes in digital tool take on temporary holiday workers.
use to persist. Among Black-led SMBs, 57%
thought the pandemic would change the use This report highlights the continued
of digital tools permanently, compared to vulnerability of SMBs to lasting impacts of
43% of other SMBs. the pandemic. SMBs have a key role to play in
establishing a resilient and prosperous post-
Globally, women-led SMBs also remain worse pandemic world. It is therefore imperative
off than their men-led counterparts in closures that they are not left behind as the recovery
and sales performance. Approximately 20% progresses and are provided with the support
of women-led SMBs reported being closed, and opportunities to enable them to flourish.
compared to 16% of men-led SMBs, although
both rates have fallen since the start of 2021
(by 7 and 5 percentage points, respectively).
Women-led SMBs were also 5% more likely to
report a reduction in sales than men-led SMBs.
ii
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Table of Contents
Executive Summary ..................................................................................................................................... i
Introduction .................................................................................................................................................. 01
Section 01: Rates of closure ....................................................................................................................... 05
Section 02: Sales and revenues .................................................................................................................. 12
Section 03: Employment ............................................................................................................................ 20
Section 04: Use of digital tools.................................................................................................................. 29
Section 05: Challenges and future expectations ..................................................................................... 36
Conclusion .................................................................................................................................................... 45
Appendix ....................................................................................................................................................... 46
References.................................................................................................................................................... 52
End Notes ..................................................................................................................................................... 55
iii
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Introduction
The world is entering the second half of 2021 Businesses will have to contend with ongoing
and approaching its second full year of living uncertainty even as countries seek to accelerate
with the COVID-19 pandemic. The start of the and broaden their recoveries. There are
pandemic provided an unprecedented shock to serious challenges that lie ahead, not least the
the global economy, but restrictions are easing, withdrawal of government support and the
and vaccination programs are now running in need to adapt to a post-COVID-19 world. Given
many countries. Globally, a recovery is underway, the importance of SMBs to global employment
with economic activity expected to grow by 5.6% (70% of the total) and output (50% of gross
to 6.0% over the course of the year (World Bank domestic product in most OECD countries), the
Group 2021; International Monetary Fund 2021a). ability of these businesses to rebound will be
crucial in limiting the long-term effects of the
Uncertainty persists, however, and risks remain pandemic (International Labour Organization
unevenly distributed. New variants drive new 2019; Gonzalez et al. 2014).
outbreaks, and uneven vaccination progress
poses varying risks across countries (Agarwal
and Gopinath 2021). Significantly, evidence The ability of
points to the disproportionate impact of
the pandemic on small and medium-sized SMBs to rebound
businesses (SMBs), defined as enterprises
consisting of 250 employees or fewer.2 A
will be crucial
depression in consumer demand, combined in limiting the
with restrictions on economic activity, has
particularly impacted sectors where SMBs are long-term effects
overrepresented, such as services, wholesale
and retail trade, and hospitality, according to
of the pandemic.
Organisation for Economic Co-operation and
Development (OECD) research (OECD 2021a;
OECD 2019). Moreover, the crisis has exposed
the preexisting vulnerabilities of SMBs, including
having smaller and less diversified customer
bases, less developed supply chains, shorter-
term cash flows and more limited access to
finance (Gourinchas et al. 2021).
01
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
The Global State of Small Business Report series The rest of this report is structured as follows:
is a data collection effort to monitor and share
information about the performance of SMBs Section 01
globally.3 The results of this report are based upon looks at the reported rates of closure
a survey conducted between July and August across SMBs.
2021, capturing the responses of 35,189 business
leaders across 30 countries and territories, Section 02
including 10,262 business leaders from the US. assesses the reported sales performance
This edition follows 6 waves of data collection of SMBs.
throughout 2020 and a survey at the start of
2021. US data collection was done in partnership Section 03
with the Small Business Roundtable. The data analyses changes to employment within
collection effort will continue to monitor the SMBs since the start of the COVID-19
performance of SMBs globally. pandemic and SMBs’ plans to rehire over
the coming months.
This latest report aims to present the state
of small businesses midway through 2021, Section 04
assessing the performance and challenges faced describes how SMBs use digital tools.
by SMBs during the COVID-19 pandemic, as well
as expectations and concerns for the future. Section 05
This edition of the report also takes a more outlines the views of SMB leaders on the
detailed look at the challenges SMBs face when current or foreseeable challenges their
transitioning back to physical spaces and the businesses are facing.
holiday projections among a subset of SMBs.
Finally, the report gives special attention to how
women-led SMBs globally and minority-led SMBs
in the US have fared relative to other SMBs.
This report forms part of Facebook’s broader
commitment to supporting SMBs and its
effort to better understand the impacts of
the COVID-19 pandemic on these businesses.
Therefore, we hope that the data generated
and the insights developed from this survey will
continue to shed light on the performance and
challenges facing SMBs as the world enters the
next stage of the pandemic and beyond.
02
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
A note on survey methodology
This report covers the findings of the second • SMBs are defined as having fewer than
Global State of Small Business Survey of 2021. 250 employees, regardless of revenue
The survey utilised a random sample of 35,189 or industry.
SMB business leaders on Facebook, from
30 countries and territories, including 10,262 • The definition of SMBs, the number of
business leaders from the US. Surveys were countries sampled within this report and
conducted on Facebook over the period 19 July– sampling approaches may differ from other
7 August 2021 for data collection in the US and sources in the literature, including previous
19–30 July 2021 for the remaining countries Global State of Small Business surveys
and territories. The reporting is limited to SMB conducted in 2020. While the trends and
leaders, defined as respondents who identified key findings from the previous reports
themselves as owning or managing a business remain relevant, these differences limit
consisting of fewer than 250 employees. direct comparison with the results of the
current survey, especially when looking
The findings from this survey add to the at aggregated statistics. Where directly
existing body of evidence and literature on compared in this report, survey data from
the impact of COVID-19 on SMBs, particularly May and October 2020 is re-estimated using
through its geographical coverage and number the same SMB definition.
of respondents included. In considering the
results, the following factors should be taken • In conducting time-trend analyses, the
into account: scope of countries sampled between May
2020, October 2020, February 2021 and the
• The survey uses a random sample of SMB present survey differ slightly. In re-estimating
leaders with Facebook Page administrator the data from prior surveys, sample averages
privileges and of the general population and regional statistics are calculated based
of Facebook users. Therefore, the sample upon the current set of 30 countries and
covered in the survey is representative of territories. As each survey uses a random
SMB leaders surveyable through Facebook sample of SMBs from each country, this
at the country level and not necessarily the forms a repeated cross-section. (There is
national population of SMBs. Weights are no panel dimension.) Countries within the
applied to enable analysis, accounting for current sample that were not present in prior
nonresponse and level of Facebook activity. surveys or had insufficient sample sizes for a
Statistics referring to the ‘aggregate’ or given question are not included in aggregate
‘global’ sample should not be considered or regional statistics relating to that survey
representative of the global population of period. Where presented, any missing
SMBs, given the sample and overall number of countries are denoted in the accompanying
countries included in the survey. End Notes.
03
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
• The sample covered in the survey includes The Appendix contains further information
a significantly higher number of SMBs in surrounding the survey methodology, survey
the US relative to SMBs in other countries. invitations and response rates by country,
We therefore present the results for the US together with sample characteristics.
separately, with additional granularity on Information about how to access the
state-level results where available. We present unweighted data and full survey methodology is
results for other countries as country averages, available at: dataforgood.fb.com/docs/state-of-
with global (aggregate) results presented as small-business.
the average across country results.
30
• We weighted observations to account
for response rates and representation within
the Facebook SMB leaders population
and reviewed these for robustness countries and territories were
before including them in this report. In included in the survey
comparing results across countries, it is
35,189
important to consider that variation and
differences between countries may be
driven by numerous factors. This could
include the sectoral makeup of an economy, business leaders were surveyed
the strictness of nonpharmaceutical
interventions (NPIs), the local level of
COVID-19 cases and the level or extent of
government support, among other factors.
While this report does intend to highlight
relationships of interest, causality cannot
be inferred—for example, in the relationship
between the rates of vaccination and
SMB performance—so further research is
encouraged in this regard.
• The results presented in this report are not
able to consider what responses might be in
the absence of the COVID-19 pandemic. Any
estimates should therefore not be viewed
to indicate net impacts of the pandemic
on businesses relative to a counterfactual
scenario in which the COVID-19 pandemic
had not occurred.
04
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
01
Rates of closure
The closure rates of SMBs have fluctuated throughout the
pandemic. By the second quarter of 2020, closure rates spiked
(Facebook/OECD/World Bank 2020) and either remained high
in some countries (OECD 2021a) or steadily fell in others as
businesses adapted to the new operating environment and
government support was introduced. Closure rates had again
risen by February 2021, at the time of the previous iteration
of the Global State of Small Business Survey, in the face of a
renewed threat from COVID-19 variants and reimposition of
NPIs in many countries.
With overall economic activity returning to pre-pandemic levels
and vaccination rates increasing in many countries, SMBs should
have greater opportunities to recover. Significant challenges
remain for SMBs, however, with uncertainty surrounding the
continuation of government support and renewed spread
of the virus, which may increase the pressures facing certain
small businesses.
05
G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Since the start of 2021, SMB closure
rates have declined across many
countries …
The results of our survey show that fewer
SMBs are reporting being closed, in line with
the improved economic outlook and easing
18%
of restrictions. Approximately 18% of SMBs
reported that they were not operational or
engaging in any revenue-generating activities
at the time of the survey.4 This represents a Globally, 18% of SMBs reported that they
12 percentage point decrease since May 2020, were closed, down 6 percentage points
the peak of SMB closures across survey waves, from February 2021.
and a drop of 6 percentage points since the
start of 2021.5 Since the start of the year,
regional closure rates have all declined, with
SMBs reporting lower closure rates in 24 of
the 27 countries and territories included
across both surveys (Figure 1).
FIGURE 1: Closure rates in July 2021, across countries and territories
10% 40% 06G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
… however, there exists a divergence European countries have the lowest rate of
across countries and regions, with closures as of July 2021 and have seen the
largest reductions (Figure 2). Of the 6 countries
some showing little to no change in the
and territories in the sample that have an SMB
rate of closures
closure rate below 10%, 5 are European (Belgium,
Germany, Italy, Poland and Portugal), with Taiwan
The decline in closure rates was greater for
the only non-European territory. Closure rates
more developed regions. Closure rates in
fell most significantly in Portugal, a decrease
Europe and North America have fallen by
of 26 percentage points to 7% of SMBs, and
11 and 8 percentage points, respectively,
the UK, a decrease of 15 percentage points to
since February 2021, meaning that the share
22%. This compares to a rise in closure rates in
of SMBs in the regions that were closed at the
Australia, Pakistan and South Africa, all of which
start of 2021 has nearly halved.6 Closure rates in
have experienced unique challenges related to
Sub-Saharan Africa and South Asia, meanwhile,
the Delta variant, political unrest, strict NPIs
have fallen only marginally compared with the
and vaccine hesitancy (Smith 2021; BBC News
beginning of the year, with rates consistently
Service 2021; Scott and McKay 2021).
higher than in more developed regions.
FIGURE 2: Closure rates by survey wave, across regions
45%
40%
35%
30%
Proportion of SMBs
25%
20%
15%
10%
5%
0%
East Asia Europe Latin America Middle East and North South Sub-Saharan Global sample
and Pacific North Africa America Asia Africa average
May 2020 October 2020 February 2021 July 2021
07G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Closure rates have fallen faster for closed in Wisconsin (11%), Oregon (13%),
consumer-facing SMBs … Michigan (14%), Nevada (16%), Oklahoma (16%),
Arkansas (17%) and New York (17%), with each
of these rates falling by over 10 percentage
Closure rates of SMBs at the sector level have
points since February. However, closure rates
improved, especially for some consumer-
in other states remained relatively high. This
facing SMBs. SMB closure rates in February
includes 25% of SMBs in Louisiana, 22% in
2021 were highest in the hospitality (25%) and
Alabama, and 21% in both Pennsylvania and
services (26%) sectors, followed by wholesale South Carolina, although the proportion
and retail (21%). In July 2021, the closure rates of closed SMBs in Pennsylvania dropped by
in hospitality and in wholesale and retail were 11 percentage points compared to February.
at or below the global average (15% and 17%,
respectively), with both sectors experiencing Women-led SMBs in the US were also more
the largest declines relative to other sectors. likely to report being closed, at 18% compared
There was also improvement in services, to just 13% for men-led SMBs. This imbalance
with closures falling by 6 percentage points; was true in all states across the country except
however, SMBs in this sector are still most likely for Tennessee, which had a 2 percentage point
to be closed, at 20%. difference in favor of women-led SMBs.
The proportion of micro-businesses (those with
fewer than 10 employees) that reported being
closed was approximately 50% higher than that
of larger businesses (those with 10 or more
employees). This is consistent with previous
surveys and wider research, which have found
that the smallest businesses are suffering most
16%
through the pandemic (Dua et al. 2020).
Closure rates are falling across the US
16% of US SMBs reported that they
were closed in July 2021, down from
Approximately 16% of US SMBs reported that
22% in February 2021.
they were closed at the time of the survey,
down from 22% in February. This generally
follows the relaxation of restrictions in place
across the country. Responses varied across
states, however, and were not always in line
18%
with the existence or degree of restrictions.
Closure rates in February exceeded 30% in
states such as Massachusetts, New York and
Pennsylvania, but by July, at least 75% of
surveyed SMBs in each state were operational.
Massachusetts had the lowest closure rates
18% of US women-led SMBs reported that
in the US (7%), 22 percentage points below
the rate recorded in early 2021. A significantly they were closed at the time of the survey,
smaller proportion of SMBs reported being compared to 13% of men-led SMBs.
08G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Gender Disparity
20% of women-led SMBs were
closed within the global sample,
4 percentage points higher than
among men-led SMBs.
09G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
WOMEN-LED
Rates of closure were higher among women-led
SMBs than their men-led counterparts
Approximately 20% of women-led SMBs were The disparity between men- and women-led
closed within the global sample, 4 percentage SMBs was more mixed in Europe. For example,
points higher than among men-led SMBs, in Ireland and the UK, women-led SMBs were
although lower than the 6 percentage point each 10 percentage points more likely to report
gap observed earlier in 2021. This disparity closures, but there were little to no reported
was most evident in Latin America, where the differences in rates of closure between men-
average rates of closure were 11 percentage led and women-led SMBs in Belgium, France,
points higher for women-led SMBs. Most Germany, Italy, Portugal and Russia.
notably, women-led SMBs were 18 percentage
points more likely to be closed in Brazil. A similar Gaps across countries and territories in
gap was apparent across other Latin American East Asia and the Pacific were also mixed.
countries, at 7 percentage points or higher in Women-led SMBs in the Philippines, Australia
each surveyed country and territory (Figure 3). and Taiwan were 9, 7 and 3 percentage points,
respectively, more likely to report closures.
In Sub-Saharan Africa, women-led SMBs The opposite was observed in Vietnam and
were 7 percentage points more likely to report Indonesia, where men-led SMBs were
closure at the time of the survey. This included 9 percentage points and 1 percentage point,
women-led SMBs in Kenya, where they were respectively, more likely to report closures.
11 percentage points more likely to be closed. Differences between genders were negligible
The gap remained at 5 percentage points or among SMBs in the Middle East and North
more for the other 3 countries in the region. Africa (comprising SMBs from Egypt and Israel).
FIGURE 3: The differential in closure rates between men- and women-led SMBs, by country and territory 7
40%
2%
35%
18% 11% 5%
6%
30% 9%
10%
5% 10%
6%
Proportion of SMBs
25% 9%
-9%
7%
1%
20% 8%
0% 6%
9%
15% 4% -1%
-1%
10% -2% 0% 0% 2% 3%
0%
5%
0%
Canada
Colombia
Argentina
Australia
France
Belgium
Brazil
Egypt
Mexico
South Africa
Germany
Ghana
Ireland
Israel
Italy
Kenya
Nigeria
Philippines
Indonesia
Poland
Portugal
Russia
Spain
Taiwan
UK
US
Vietnam
Men-led SMBs Women-led SMBs Global sample average
10G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
MINORITY-LED
Minority-led SMBs in the US continue to be
more severely impacted
The pandemic continues to disproportionately
impact minority-led SMBs in the US.8 Minority-led
SMBs were 7 percentage points more likely to
report closures, with 20% closed compared
to 13% of other SMBs. This rate has dropped
faster for minority-led SMBs since February
2021, with a 7 percentage point decrease
24%
compared to 5 percentage points for other
SMBs. A significant portion of this decrease
is due to an 11 percentage point drop in the
closure rate of Black-led SMBs. Hispanic-led Hispanic-led SMBs were the most
SMBs were the most likely to report being likely to report being closed at 24%,
closed at 24%, a drop of 2 percentage points down from 26% in February.
since February, and the proportion of Asian-led
SMBs that are not currently operating has
increased from 13% in February to 15% at the 20% vs 13%
time of the survey.
Minority-led SMBs were 7 percentage
points more likely to report being
closed than other SMBs.
The decline in closure rates is in line with the
wider economic recovery and may be a sign
of the lessening impact of the pandemic on
SMBs. However, progress is uneven. Closure
rates fell faster in developed countries, and
SMBs in consumer-facing sectors report a
welcome improvement. However, women-
led SMBs globally, minority-led businesses
in the US and SMBs in developing countries,
particularly Sub-Saharan Africa and
South Asia, remain behind.
11G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
02
Sales and revenues
Mobility-reducing restrictions, coupled with sharp declines in
consumer confidence, have provided a challenging operating
environment for SMBs during the course of the pandemic,
even for those able to remain open (OECD 2020a).9 Previous
Global State of Small Business reports found that the majority
of SMBs had experienced a decline in sales over the course of
the pandemic, and wider research points to changing consumer
spending habits (Deloitte 2020).
The pace of improvement to the sales environment is likely to
vary considerably across countries and regions, even though
many economies are expected to achieve significant levels
of growth in 2021. The US was estimated to have surpassed
pre-COVID levels of output in the first half of 2021, but the return
to normal levels of economic activity may take longer for many
other economies, particularly for many emerging markets and
less economically developed nations (US Bureau of Economic
Analysis 2021; International Monetary Fund 2021a). The fortunes
of these businesses will be an integral part of this revival, given
the asymmetry of the impacts of COVID-19 on SMBs and the
important role SMBs play within these economies.
12G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
The sales environment is improving lower sales in October 2020, 55% in February
for some operational SMBs, although 2021 and 52% in the most recent survey.
However, at the same time, a majority of SMBs
conditions remain challenging for many …
reported a worsened sales performance relative
A growing proportion of SMBs are reporting to July 2020, a period during which the world
an improved sales climate in line with the was already in the grip of the pandemic, despite
economic recovery. Approximately 28% of evidence of an improving sales climate for a
operational businesses reported higher sales growing proportion of SMBs.
over the past 30 days compared to the same
period last year.10, 11 This represents a steady
increase across time (Figure 4). Only 16% of
SMBs reported higher year-on-year sales in
28%
May 2020, since increasing to 20% and 21%
of surveyed SMBs in the October 2020 and
February 2021 surveys, respectively.
The proportion of SMBs reporting lower sales
has itself fallen, compared with previous survey
results. This may also be indicative that more
SMBs are starting to recover. Just under three- 28% of operational businesses reported
quarters (73%) of SMBs reported lower sales higher sales over the past 30 days
in May 2020 than in the same 30-day period a compared to the same period last year.
year earlier. This fell to 68% of SMBs reporting
FIGURE 4: Operational SMBs reporting higher sales compared to the previous year, across survey waves for regions
40%
35%
30%
Proportion of SMBs
25%
20%
15%
10%
5%
0%
East Asia Europe Latin Middle East and North South Sub-Saharan Global sample
and Pacific America North Africa America Asia Africa average
May 2020 October 2020 February 2021 July 2021
13G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
SMBs in North America and Europe saw In contrast, SMBs in East Asia and the Pacific
the greatest increase in the proportion of and in Sub-Saharan Africa reported worsening
SMBs reporting improved year-on-year sales sales performance. The share of SMBs in these
performance. For instance, 40% of North regions reporting higher sales fell by 5 and
American SMBs reported higher sales, 11 percentage points, respectively, reflecting
a 17 percentage point improvement since renewed outbreaks in these regions driven by
February 2021. The same trend could also be the Delta variant.
observed in Europe and Latin America, with
15 and 14 percentage point improvements, Three-quarters or more of SMBs in India,
respectively, since February 2021. SMBs in Taiwan and Vietnam reported lower sales, with
Ireland reported the largest improvement only 10% to 17% of SMBs in these countries
within these regions, with a 27 percentage indicating sales have improved relative to the
point increase in the proportion of SMBs same period in 2020 (Figure 5). More SMBs
reporting higher year-on-year sales. This was reported increased sales than decreased sales
followed by the US (21 percentage points), Italy relative to the same month in the previous year
(20 percentage points), the UK (19 percentage in Ireland, Nigeria and the US, the only countries
points), Germany (19 percentage points) and to report this trend.
Brazil (18 percentage points).
FIGURE 5: Sales performance compared to the previous year, for SMBs in selected countries and territories
100%
90%
80%
70%
Proportion of SMBs
60%
50%
40%
30%
20%
10%
0%
Canada
Argentina
Australia
France
Belgium
Brazil
Colombia
Egypt
Mexico
South Africa
Germany
Ghana
India
Ireland
Israel
Italy
Kenya
Nigeria
Pakistan
Philippines
Indonesia
Poland
Portugal
Russia
Spain
Taiwan
Turkey
UK
US
Vietnam
Lower The same Higher
14G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Within the US, SMB sales performance varied The picture was less positive in other states.
by state (Figure 6). The majority of SMBs in The proportion of SMBs reporting lower sales
Tennessee (53%) and South Carolina (52%) was highest in California, Georgia, Michigan
reported greater sales in the past 30 days and Virginia (all 42%). SMBs in California,
compared to the previous year. SMBs in Georgia, Michigan, New Jersey and New York
Arizona and Tennessee reported the largest were also more likely to report lower sales than
rise relative to February 2021, with the to report higher sales, although the proportion
proportion reporting higher year-on-year reporting a worse sales performance declined
sales increasing by 13 percentage points in all but Georgia.
in both states. Improved sales performance
was also evident in Indiana, Maryland and
Minnesota, where only a quarter of SMBs
reported a reduction in sales, compared to
31-point gain
a national average of 34%. Maryland and SMBs in Arizona and Tennessee reported
Minnesota also recorded 30 and 29 percentage the largest rise relative to February 2021,
point decreases, respectively, in the share of with the proportion reporting higher
SMBs reporting lower sales. year-on-year sales increasing by
31 percentage points.
FIGURE 6: Sales performance compared to the previous year, for SMBs in selected US states
60%
50%
40%
Proportion of SMBs
30%
20%
10%
0%
California Colorado Georgia Illinois Kentucky Michigan Minnesota New New Tennessee Virginia US
Jersey York average
Higher Lower
15G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
… in particular, more consumer-facing Construction SMBs were least likely to report
SMBs are reporting a worse sales a year-on-year drop in sales (41%), followed by
those in agriculture (41%) and information and
performance than other sectors
communications technology (ICT) (43%). SMBs
The majority of SMBs in retail and hospitality in construction and in ICT were also among the
sectors reported lower sales, contrasting most likely to report an increase in sales, with
with the downward trend seen in aggregate 35% of SMBs in these sectors doing so, behind
closure rates. Operational consumer-facing only manufacturing at 36%.
SMBs were 7 percentage points more likely to
report a reduction in sales. SMBs in wholesale
and retail trade were most likely to report a
reduction in sales compared to the equivalent
period last year, with 56% doing so (Figure 7).
Approximately 52% of SMBs in hospitality
reported a reduction in sales. The wholesale
and retail trade sector and the hospitality sector
52%
also had the lowest shares reporting an increase
in sales, at 28% and 33%, respectively. SMBs in
other sectors have fared relatively better.
52% of SMBs globally in hospitality
reported a decrease in year-on-year sales.
FIGURE 7: Sales performance compared to the previous year, by sector
Agriculture
Construction
Hospitality
ICT
Manufacturing
Other services
Transportation
and storage
Wholesale and
retail trade
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Proportion of SMBs
Lower The same Higher
16G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
SMB recovery is correlated with appear to have a lower incidence of SMBs
vaccination rates reporting they have reduced employment
as a result of the pandemic—and conversely,
There appears to be a correlation between sales a positive correlation with the proportion
performance and vaccination rates, consistent increasing employment.
with wider links reported between vaccination
rates and economic recovery (United Nations While these correlations do not establish a
Development Programme 2021; World Health causal relation between rates of vaccination
Organization 2021). Countries and territories and SMB performance, they do highlight the
with higher vaccination rates tend to have lower disparity between countries that have had
proportions of SMBs reporting a decline in sales faster vaccination rollouts (generally more
relative to last year (Figure 8). developed countries) and those that have not,
particularly in relation to economic recovery.
This relationship also holds with regards to the
proportion of SMBs reducing employment
(see Section 03 for an analysis of employment).
Countries with higher rates of full vaccination
FIGURE 8: Correlation between the rate of full vaccinations and operational SMBs reporting a drop in year-on-year sales, by
country and territory12
80%
ID
VN
TW
70%
ZA
GH
Proportion of SMBs
EG
60% KE PH
TR
CO
AU PT
IN
PK MX
50%
BR ES
GB
AR PL IL
FR BE
NG RU
40% IT CA
DE
IE
US
30%
0 10 20 30 40 50 60
People fully vaccinated per 100, at the start of July 2021
17G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
WOMEN-LED
Women-led SMBs were equally as likely to
report a decrease in sales as men-led SMBs
The proportion of SMBs reporting an likely), Portugal (12 percentage points),
improvement in sales performance in the past France (11 percentage points) and Ireland
30 days compared to the same period last year (11 percentage points).
was the same for both women- and men-led
SMBs, at 28%. There was also no observable This trend was not universal across countries,
difference between gender in the share of SMBs however, and in some countries was reversed.
reporting a worsened sales performance (53%). Women-led SMBs in the UK, Israel, Canada
and Argentina were all more likely to report
In some countries, women-led SMBs were more increasing sales performances (by 6, 6, 2 and
likely to report a worse sales performance. 10 percentage points, respectively). They were
Women-led SMBs in Brazil were 16 percentage also less likely to record a drop in sales (by 10, 5,
points less likely to report a year-on-year sales 6 and 1 percentage points, respectively) relative
increase and 8 percentage points more likely to to men-led SMBs. This may be driven in part
report a sales decrease. Women-led SMBs were by the recovery of retail and service sectors,
over 10 percentage points less likely to report in which women-led SMBs are slightly more
an increase in sales in certain other countries as concentrated, on average, within these countries.
well, including Ghana (16 percentage points less
18G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
MINORITY-LED
Minority-led SMBs in the US reported a greater
impact on sales
Minority-led SMBs in the US were more likely however, higher than the proportion reporting
to report a reduction in sales compared to an increase in sales (37%) and is in contrast to
the same period the previous year, with 44% the trend seen in other SMBs and the overall US
doing so compared to 29% of other SMBs average. Hispanic-led SMBs were most likely to
(Figure 9). This represents an 11 percentage report reduced sales (46%) and least likely to
point improvement since February 2021. It is, report increased sales (31%).
FIGURE 9: Proportion of SMBs reporting a change in sales from previous year, by race or ethnicity 13, 14
50%
45%
40%
35%
Proportion of SMBs
30%
25%
20%
15%
10%
5%
0%
White Selecting more than Black Hispanic Minority-led US average
one race or ethnicity
Higher sales Lower sales
The business environment remains challenging These disparities, and the continued
for many SMBs despite an increasing share improvement of various SMBs’ performance,
of SMBs reporting a growth in sales. Those are likely to be crucial for the wider strength of
in countries with higher vaccination rates are the global economic recovery.
performing relatively better. However, women-
and minority-led SMBs remain behind other SMBs.
19G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
03
Employment
The continuing impact of the pandemic on aggregate
unemployment rates varies across countries. In some, rates
are falling, although they remain above pre-pandemic levels.
Unemployment rates in the US peaked at 15% in 2020 before
declining to 5.4% by July 2021, still above the 3.5% rate observed
in February 2020 (US Bureau of Labor Statistics 2021). Similar
trends can be seen across OECD countries as well (OECD 2021b).
In other countries, however, unemployment remains high.
Unemployment in Brazil, for example, reached a record high
of 14.7% in April 2021 (McGeever 2021).
Evidence from the previous waves of the Global State of Small
Business Report, as well as the wider literature, indicates that SMBs
have reduced employment as a response to the COVID-19 crisis
(Facebook/OECD/World Bank 2020; International Trade Centre
2020). SMBs also account for 70% of global employment and may
have a potentially vital role to play in aiding the overall restoration of
employment (International Labour Organization 2019).
20G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
The proportion of operational SMBs Despite the decline in February 2021, this
reporting reduced employment as a may indicate a longer-lasting impact of the
pandemic on SMBs’ ability to grow.
result of the COVID-19 pandemic has
risen since the start of the year …
SMBs are increasingly reporting a drop in
employment as a result of the pandemic,
36%
indicating that some SMBs continue to be held
back from recovery and growth. Approximately
36% of operational SMBs globally reported
that, to date in July 2021, the pandemic had
caused them to reduce employment, marking
an increase from 30% at the start of 2021.15 The
share of SMBs reporting a drop in employment
has stayed largely consistent with previous 36% of operational SMBs globally
stages of the pandemic, with 38% and 39% of reported that they have reduced
SMBs reporting reducing employment in May and employment as a result of the pandemic,
October 2020, respectively (Figure 10). an increase from 30% in February 2021.
FIGURE 10: Operational SMBs reporting reducing employment as a consequence of the COVID-19 pandemic, across regions
60%
50%
40%
Proportion of SMBs
30%
20%
10%
0%
East Asia Europe Latin America Middle East and North South Sub-Saharan Global sample
and Pacific North Africa America Asia Africa average
May 2020 October 2020 February 2021 July 2021
21G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
There are also differences across countries. SMBs a reduction in employment as a result of the
in Europe and North America were less likely to pandemic (Figure 11). This trend also holds when
report a reduction in employment as a result of considering developing countries and territories
the pandemic than SMBs in other regions. All only. However, the relationship does not appear
countries in our sample in which less than 30% of to hold for the subset of developed countries.17
SMBs reported a reduction in employment are in
these regions. SMBs in developing countries—in
particular, Indonesia (72%), Kenya (58%) and Countries and
Vietnam (53%)—were much more likely to have
reduced their workforces.
territories that score
higher on the World
SMBs’ performance also appears to correlate
with the institutional environments in which
Bank Government
they operate. The World Bank Government Effectiveness
Effectiveness Index measures the quality of
Index appear to
inputs required for the government to be able
to produce and implement good policies and have fewer SMBs
deliver public goods. The index is based on reporting a reduction
households’ and businesses’ perception of the
quality of factors such as public services and in employment as a
policymaking.16 Countries that score higher on result of the pandemic.
the index appear to have fewer SMBs reporting
FIGURE 11: Relationship between government effectiveness and the proportion of SMBs reporting employment reductions,
by country and territory
80%
ID
70%
60%
KE
Proportion of SMBs
VN
50% NG
GH CO
IN
EG PH
40% PK MX ZA
TR
BR TW
ES
AR
30% IL AU
IT PT CA
RU PL US
GB DE
20% BE
IE
FR
10%
-1.5 -1 -0.5 0 0.5 1 1.5 2
Government Effectiveness Index
22G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
… however, some SMBs have since
started rehiring, a trend that appears
set to persist into the near future …
Some SMBs have been active in rebuilding their
workforces, despite many continuing to report
19%
reduced overall employment. Approximately
38% of SMBs indicated that at least some of
their current workforce had been hired during
19% of SMBs globally indicated that
the pandemic (Figure 12), and 19% indicated
they had rehired at least some of their
that at least some of these workers were workers who had been furloughed or
rehired after being furloughed or laid off during laid off during the pandemic.
the pandemic. The proportion of SMBs rehiring
furloughed or laid-off workers was substantially
higher in some countries—for example, India
(37%), Pakistan (35%) and Indonesia (33%).
10%
10% of SMBs globally reported that
their employment had increased as
a result of the pandemic.
FIGURE 12: Operational SMBs reporting increasing employment as a consequence of the COVID-19 pandemic, across regions
20%
15%
Proportion of SMBs
10%
5%
0%
East Asia Europe Latin Middle East and North South Sub-Saharan Global sample
and Pacific America North Africa America Asia Africa average
May 2020 October 2020 February 2021 July 2021
23G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
In fact, more than 10% of operational SMBs
in our survey reported that their employment
had increased as a result of the pandemic. This
represents a larger proportion than in February
2021 (7%) and at any point in the previous year.
Looking to the future, 24% of SMBs surveyed
24%
globally plan to rehire previously furloughed or
laid-off workers over the next 6 months. This
proportion was higher in many middle-income
countries, such as Colombia, India and Pakistan, 24% of SMBs surveyed globally plan to
which were all at 41% (Figure 13). rehire previously furloughed or laid-off
workers over the next 6 months.
FIGURE 13: SMBs planning to hire more workers over the coming months, by country and territory
80%
70%
60%
50%
Proportion of SMBs
40%
30%
20%
10%
0%
Canada
Argentina
Australia
France
Belgium
Brazil
Colombia
Egypt
Mexico
South Africa
Germany
Ghana
India
Taiwan
Turkey
UK
US
Vietnam
Indonesia
Ireland
Israel
Italy
Kenya
Nigeria
Pakistan
Philippines
Poland
Portugal
Russia
Spain
No Yes
24G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
In the US, 24% of SMBs stated that they Arkansas had the highest proportion of SMBs
had reduced employment as a consequence reporting increased employment, at 23%.
of the COVID-19 pandemic, representing This contrasts with states such as Alabama,
only a 3 percentage point decline since Kentucky, Louisiana, Minnesota, Nevada and
February. At the same time, 13% of SMBs Tennessee, where less than 10% reported an
had increased employment over the same increase in employment.
period, an improvement of 5 percentage
points since February. … with changes in SMB employment
dependent on sectors
Results varied across states, with 38% of SMBs
in Nevada and approximately one-third of SMBs in the hospitality and transport sectors
SMBs in Michigan (33%) and Kentucky (32%) were the most likely to report reduced
stating they had reduced employment. This employment due to the pandemic (52% and
was in direct comparison to South Carolina 42% of SMBs in these sectors, respectively)
and Minnesota, where only 14% of SMBs had (Figure 14). In contrast, 27% of SMBs in the
reduced employment. The proportion of SMBs ICT sector experienced a reduction in their
in New Jersey reporting that they had reduced workforces. SMBs in this sector were also most
employment was 13 percentage points lower likely to report an increase in employment due
since the February survey, the largest drop of to the pandemic, with 14% doing so.
all states, followed by Missouri (12 percentage
points lower), and California and New York
(both 11 percentage points lower).
FIGURE 14: Proportion of SMBs reporting changing employment due to the COVID-19 pandemic, by sector
Agriculture
Construction
Hospitality
ICT
Manufacturing
Other services
Transportation
and storage
Wholesale and
retail trade
0% 10% 20% 30% 40% 50% 60%
Proportion of SMBs
Increased Decreased
25G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
WOMEN-LED
Women-led SMBs were less likely to report
reduced employment but were also less likely
to have increased employment
Women-led SMBs globally were 4 percentage previous Global State of Small Business reports
points less likely to have reported reducing and wider literature on female entrepreneurs
employment as a result of the COVID-19 (Facebook/OECD/World Bank 2020; Bardasi
pandemic than men-led SMBs. Women-led et al. 2011). Differences in the characteristics
SMBs were also 3 percentage points less likely of men- and women-led SMBs, such as the
to state that they had increased employment. average size and the sectoral composition,
may influence the productivity and scalability
The difference between women- and men- of these businesses (Carranza et al. 2018). This
led SMBs varied in size by country and suggests that variation in the size and sectoral
territory. Women-led SMBs were more than makeup of SMBs may play an important role
10 percentage points less likely to report in driving some of the observed differences
reducing employment in Israel (16 percentage between men- and women-led enterprises.
points), the UK (12), Australia (10) and Taiwan
(10). Women-led SMBs were also more than 10
percentage points less likely to report increasing
employment in Germany, Ireland and Russia.
26% vs 18%
26% of men-led SMBs reported that
Similar trends were observed when SMBs they plan to rehire workers within the
were asked about their expectations for next 6 months, compared to only
rehiring. Approximately 26% of men-led 18% of women-led SMBs.
SMBs reported that they were planning to
rehire within the next 6 months, compared to
only 18% of women-led SMBs. This disparity
was greatest in countries such as Mexico
Variation in size and
(19 percentage points lower), Vietnam sectoral makeup
(15 percentage points), Russia (14 percentage
points), South Africa (14 percentage points)
between women-
and Canada (13 percentage points). and men-led SMBs
These findings may be driven in part by may play an important
the greater propensity of women-led SMBs role in driving some
sampled to operate smaller establishments,
such as those within the personal services observed differences.
sector. Women-led SMBs globally were
12 percentage points more likely to work in
the services sector and 6 percentage points
more likely to work in a micro-enterprise
(i.e., fewer than 10 employees), similar to the
26G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
MINORITY-LED
Minority-led SMBs were more likely
to reduce employment
Minority-led SMBs in the US were more likely
to report reduced employment. Almost one-
third (32%) did so, compared to just 20%
of other SMBs, a difference of 12 percentage
points. This gap has widened since February
2021, when minority-led SMBs were only
7 percentage points more likely to have reduced
32%
employment. Asian-led SMBs were most likely
to reduce employment, with 38% reporting
reduced employment, followed by 35% for
Hispanic-led SMBs. Asian-led SMBs were also 32% of minority-led businesses
the most likely to report increased employment, reported reducing employment as
however, at 18% compared to just 7% of a result of the pandemic, compared
Hispanic-led SMBs. to 20% of other SMBs.
There is some cause for optimism, however,
as more minority-led SMBs (21%) planned to
rehire furloughed or laid-off workers over the
next 6 months than other SMBs (8%). More than
one-quarter (27%) of Hispanic-led SMBs planned
to rehire staff, the most of any minority group.
While the recent trends for the labour market There are causes for optimism, however.
have been positive, the findings of the survey An increasing share of SMBs now have more
suggest the impact of the pandemic on SMB employees than before the pandemic, and
employment has remained stubbornly high almost one-quarter are now either rehiring
over its course. The share of SMBs reporting a or planning to rehire, including minority-led
reduction in workforce size since the start of businesses. Enabling SMB growth will be an
the pandemic fell in February 2021 but has since important element to economic recovery and
returned to the higher levels seen in 2020. resilience going forward.
27G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
Rehiring Uptick
More minority-led SMBs
(21%) plan to rehire
furloughed or laid-off
workers over the next
6 months than other
SMBs (8%).
28G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
04
Use of digital tools
The digitalisation of businesses has surged in recent years, and
companies have further increased their use of digital tools during
the COVID-19 pandemic. In particular, remote working, adoption
of newer technologies and revenue made online have increased
(Gartner 2021; OECD 2020b). New consumer habits and
expectations of work conditions formed during the pandemic are
likely to remain to some extent, even as the economic recovery
continues (European Commission 2021; Bartik et al. 2020).
SMBs typically lag behind their larger counterparts when
considering the uptake of digital tools, restricting their use to
mostly administrative functions (OECD 2021c). Digital platforms,
however, have provided many enterprises with an alternative
avenue in which to operate during the pandemic. SMBs have had
to adapt, whether to reach new customers or overcome physical
restrictions placed upon their operations. Subsequently, use of
digital tools has increased significantly during these difficult times.
29G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
During the COVID-19 pandemic, Use of digital tools has also increased since the
an increasing share of SMBs have start of 2021, rising from 81% to 88% of SMBs
since February 2021 (Figure 15). The share of
leveraged digital tools to stay
SMBs using digital tools increased the most
connected to their customers …
in Egypt (19 percentage points), and in Ireland
and Pakistan (both 17 percentage points), but
A large majority of leaders in operational
this trend was not always consistent. SMBs in
SMBs reported utilising digital tools for their
countries such as Israel and Indonesia reported
businesses. SMBs were most likely to report
a decline in the use of digital tools, by 5 and 7
using digital tools to advertise (60%) and to
percentage points, respectively.
communicate with customers (58%). This
trend was evident in all regions except North
SMBs have been increasing digital tool use
America, where SMBs were more likely to report
across a range of purposes since February 2021.
communicating directly with customers (73%)
The largest increases were seen in advertising
than advertising as a use of digital tools (71%).
and selling goods and services, with the share
SMBs in Latin America were particularly likely
of SMBs using digital tools for these purposes
to use digital tools for advertising, with 76%
rising 21 percentage points and 12 percentage
and 73% of SMBs highlighting this in Mexico
points, respectively.
and Brazil, respectively.
FIGURE 15: SMBs’ reported use of digital tools in February and July 2021 survey waves, across the global sample
60%
50%
40%
Proportion of SMBs
30%
20%
10%
0%
Advertising Communicating Selling goods Analysing or Coordinating or Hiring None
with customers and services researching to answer collaborating mentioned
business questions between employees
February 2021 July 2021
30G LOBAL STATE O F SM A LL BU SI N E SS R E P O R T - S EP T EM B ER 2021
… in particular, digital channels were a regions, particularly Latin America, where 43%
means to support sales for SMBs … indicated that use of digital tools had increased
sales performance. The exception was Europe,
The importance of digital tools to SMB leaders where SMBs were the least likely to report
was reflected in the proportion of businesses an increase in sales (30%) and more likely to
reporting positive experiences. Approximately identify an increase in customer or supplier
69% of SMBs reported that use of digital tools base (32%).
has had at least one positive impact on their
business operations, such as an increase in
sales or customer base. This proportion was
greater in middle-income countries, despite
the overall lower usage rates. In Vietnam
and the Philippines, 88% and 78% of SMBs, Usage of digital
respectively, reported at least one form of
positive impact on their businesses.
tools by SMBs has
increased globally,
More SMBs reported that digital tools had led
to an increase in sales (34%) than for any other rising from 81%
impact, followed by an increase in customer or
supplier base (31%) across the global sample
to 88% since
(Figure 16). This was the case across almost all February 2021.
FIGURE 16: Reported impact of digital tools on operational SMBs, across the global sample
40%
30%
Proportion of SMBs
20%
10%
0%
Increase Increase in Access to digital Lower Increase in Other No impact
in sales customer or solutions and business operational employment
supplier base intelligence services costs
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