Recently Facebook conducted a survey on all the small and medium sized business enterprises, and 38,078 business owners, 39,104 employees, and 8,694 private enterprises throughout the United States responded on the same. All these respondents comprised of industrial, retail, logistics, hospitality, building and construction, agriculture, and many other services. Approximately 75% of their business was urban, and 25% was rural based. The survey revealed a shocking report that almost 57% of the small scale business owners are very positive about the future of their business and are very optimistic that they are going to survive this global pandemic. This survey was conducted on approximately 86,000 small scale business owners considering the current situation of COVID 19.
This positive attitude is commendable, after considering the present condition of the small scale enterprises wherein a third of the SSE declared that they are not working since April 2020 and will eventually wind up their business looking at the present situation of COVID19. All these data makes it evident how small scale sectors are strictly dependent on the economy for their survival and desperately wants to open it again if they want to be in the show. Let us give you all the intricate highlights of the survey in the below section.
Highlights of the survey conducted by Facebook on Small and medium enterprises
- 31% of the small and medium scale enterprises have already stopped working till April 2020. 61% of the people gave extended lockdown as the main reason for their non-working. And almost 9% critically acclaimed financial issues, and 7% gave customer demands as the primary reason behind their non-working.
- Geographically businesses in the north east zone were more likely to be impacted as compared to the south east zone.
Types of Small scale enterprises that were most affected by COVID 19
Below mentioned are the types of business enterprises that were most affected by COVID 19
- 52% of the Personal Businesses run by entrepreneurs got hampered due to COVID 19.
- 43% of the Hotel Lines and hospitality centers got so adversely affected that they had to wrap up their business.
- 41% of the service sector industry, including gyms, beauty salons, and other professional service centers. Were closed after this global disaster.
Besides this, below mentioned is the list of those business enterprises that were likely to retain their position even during this tough time:
- Agricultural sector
- Information Technology sector
- Communication sector
Furthermore, Facebook also anticipated that for all the operational Small scale enterprises, it is going to be a tough road ahead, as regardless of the 50% decline in their sales, they still have to meet up fixed costs. Moreover, about 76% of the owners were worried about their maintaining their cash flow, and 41% had to invest their personal savings to keep the business afloat, and 39% are still striving hard to generate money to keep their business going. Hence all this makes it very clear how desperately small scale enterprises want the economy to reopen so as to retain their business.
The COO of Facebook also said that all those people who work in the small and medium scale industrial sector strongly believe in a positive future of their business. They are working hard to find new ways to approach their customers virtually. They are modifying their operational strategies as per their customer’s demands and are ready to adjust to how and when they operate their business.