Black-owned small businesses were more likely to report closures and lower sales (38%) compared to other small businesses (18%). Over half (54%) of small businesses led by women reported a fall in sales, compared to 47% of small businesses led by men. The gap between men and women-led small businesses was highest in Tennessee (23%), Ohio (16%), Illinois (14%), and Missouri (14%). Overall, 22% of U.S. small businesses reported they were closed in February 2021, a 14% increase compared to October 2020. Globally, 24% of small businesses reported they were closed during the same period, a 16% increase. Approximately 51% of U.S. small businesses and 55% of global small businesses reported year-over-year sales declines in January. RESTAURANTS STRUGGLE TO FIND EMPLOYEES DESPITE DECLINING COVID-19 CASES
The social media giant’s first-ever Global State of Small News Report, which surveyed over 35,000 small businesses impacted by COVID-19 across 27 countries, finds that the Empire State and Keystone State had the highest reported small business closure rates in the U.S. at 31% each, followed closely behind by Massachusetts with a reported closure rate of 30%. MLB ALL-STAR GAME BOYCOTT ‘CRUSHING’ FOR ATLANTA SMALL BUSINESSES
Small businesses in smaller states fared better. Maine and Idaho reported the lowest closure rates of 9% each. Colorado, which ranks 22nd in population, was next lowest with a closure rate of 10%. According to new data from Facebook, New York tied with Pennsylvania for having the most small business closures in the country during the coronavirus pandemic,
GET FOX BUSINESS ON THE GO BY CLICKING HERE Hospitality was the leading sector for closures, sales declines and workforce reductions. The sector reported a 53% workforce reduction in the United States and a 50% reduction globally. The states where small businesses reduced employment the most include New York (38%), Illinois (36%), Michigan (36%), California (33%), and Florida (32%).
Approximately 32% of minority-led small businesses (Black, Hispanic, Asian-American, and other races) reported reduced employment since the start of the pandemic compared to 25% of other small businesses. About 27% of U.S. small businesses and 30% of global small businesses have reduced their workforces due to the pandemic.
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