This Is The State of SMEs One Year After The Pandemic, According To Facebook
As part of its efforts to support SMEs, Facebook presented the latest installment of its Global Report on the State of Small Businesses, a survey conducted in February 2021 of 35,000 SMEs around the world to learn how the restrictions imposed to control The pandemic impacted their operations, their income, their workforce and even their medium-term plans.
Facebook is committed to supporting SMEs on the road to economic recovery by making relevant and actionable information available to companies, organizations, government agencies and the general public to find solutions that help this important sector of the economy. This is in addition to the free tools and training that Facebook offers to SMEs to support their digital transformation.
The 2021 edition of this report studies the continuing effects of the COVID-19 pandemic on SMEs. In this context, Facebook research aims to provide insights and information that can facilitate meaningful support for this important sector.
Among the main findings of the Global Report on the State of Small Businesses it was found that, in February 2021, globally 76% of SMEs were operating or participating in some income-generating activity, compared to 75% registered in Mexico. While in October 2020, according to the last installment of last year, the percentage reported in our country was 86%.
The SME sector is the largest employer in any economy, and it plays an even bigger role in developing and emerging economies. However, access to credit is often a big challenge for SMEs. This is mainly because of their specific characteristics, especially their opacity and lack of verifiable information on their operations. Banks have traditionally used relationship lending to extend finance to SMEs, although in recent years other innovative lending technologies have also showed a lot of promise. Link to learn more about the FDFIx course and register for the public: https://www.edx.org/course/financial-… Link to learn more and register for government officials: https://www.imf.org/en/Capacity-Devel…
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Meanwhile, in February 2021, 27% of SMEs globally reduced the number of their employees, while in Mexico it did so 38%; percentage that in 2020 was higher with 42%.
In addition, 55% of the companies surveyed globally reported a decrease in their sales, compared to the same month last year. In Mexico the impact was less, but considerable with 48%; In October 2020, 64% of Mexican SMEs reported this reduction compared to their sales in October 2019.
On the other hand, 51% of SMEs globally and 56% in Mexico reported trusting in their ability to continue operating for at least six months if current circumstances persist.
Regarding future challenges, both globally and in Mexico, 19% of SMEs surveyed in February 2021 (33% in October 2020 in our country) anticipated challenges related to cash flow, while 24% foresee challenges related to demand or lack of customers.
Entrepreneurship and women
Regarding the statistics that show the disproportionate impact among Mexican SMEs led by women, compared to those by men, it was observed that:
73% of women’s SMEs are in operations, compared to 76% led by men (84% versus 88% in October 2020)
52% of women’s SMEs reported lower sales in February 2021 compared to the same month in 2020 (prior to the COVID-19 pandemic), compared to 48% of SMEs run by men.
As the pandemic enters a new phase with the reduction of restrictive measures, it is important to understand what are the most important challenges that SMEs face on the road to economic recovery.
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