A study conducted by Facebook in association with Small Business Roundtable found that 25% of small businesses had closed by December 2020. In comparison, 31% of small businesses were closed in April 2020.
- The retail business accounted for the highest percentage of sales through digital channels compared to other sectors. Also, the percentage of retail businesses selling online increased from 79% before the pandemic to 97% in December. The number of businesses not making sales through digital channels reached 13% in December, down from 35% in April 2020.
- In terms of supply chain challenges, 42% of businesses cited limited supply as a challenge, with delayed shipment also at 42%. Foreign supplier delays were reported by only 11% of small businesses.
- About 39% of food and accommodation businesses and 32% of retail businesses mentioned that they anticipate cash flow problems in the future. In December, 37% of businesses applied for external sources of capital, indicating the need to mitigate the effects of the pandemic.