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Small and medium-sized enterprises (SMEs) can help lessen the negative effects of COVID-19 on their businesses by selling more through digital channels, according to the results of Facebook Small Business Global Status Report: Phase III Update.
More than 40 percent of SMEs made more than a quarter of their sales through digital channels in most regions at the time of the third phase of the 2020 Future of Business Survey, which was sent from July 24 to 30.
“Companies that made more than 25 percent of their sales online were less likely to report lower sales compared to the same 30-day period last year and more likely to report an increase in sales, compared to those with a limited digital presence, “according to the report.
In fact, 18 percent of companies that made more than a quarter of their sales through digital channels saw an increase in sales compared to the same 30-day period last year.
The survey also found that the proportion of SMEs that closed in total fell two percentage points between Wave II and Wave III to 16 percent. It found that the closure rate for consumer-facing industries such as restaurants, cafes, and lodging facilities dropped from 19 percent in Wave II to 15 percent in Wave III.
Additionally, the survey determined that several closed businesses were creating an online presence. A quarter, or 25 percent, of closed businesses indicated they were creating a website or digital presence in all three waves of surveys.
The Wave III update contained the perspectives of more than 25,000 employers, workers and supervisors in more than 50 countries.
PYMNTS data collected on nearly 500 Main Street SMEs across the country between August 6 and 10 indicates that operators are more optimistic about the chances of survival than they were in the spring. That increased confidence comes despite the fact that COVID-19 lasts much longer than expected.
“54 percent of all SMEs now say they feel confident that they will be able to remain open until the end of the pandemic, but only 42 percent felt the same in March,” according to the new study.
Yet 75 percent of businesses on Main Street say they are still dealing with declining sales stemming from the pandemic, while many have had to take more mitigating measures to keep their cash flow in balance.
More than four in 10, or 41.9 percent, of Main Street SMEs have had to cut their payroll and 26.1 percent have had to apply for loans from the Small Business Administration (SBA).
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