As Small Businesses Continue to Struggle Globally, Women and Minority-Led Ones Are Hardest Hit
Small businesses around the world have struggled since the start of the pandemic more than a year ago. While the roll-out of vaccines gives a reason to be hopeful, our latest Global State of Small Business Report is a timely reminder that many are still vulnerable and need support. And those feeling the impact of the pandemic the most are women and minority-owned businesses – a further reminder that whenever crises hit, it’s always the most vulnerable who are hit the hardest.
We’ve learned time and again through our small business surveys that firms led by women are harder hit than those run by men. In Portugal and Germany, for example, closure rates were 29 and 28 percentage points higher for women-led business respectively, and there was a 14-point gap in Brazil and a 10-point gap in Argentina. Globally, those that were able to stay open were also more likely to report a drop in sales – a 4 percentage point gap overall, but 7 points in the U.S.
In the U.S., more than half of minority-led businesses reported a drop in sales compared to the previous years – 6 percentage points higher than other small businesses. Almost two-thirds of Black-led businesses and 46% of Hispanic-led ones that reported a drop in sales said it was by over 50%.
Apr 18, 2021 at 20:54