Meta have released their 2022 Global State of Small Business Report, which surveyed nearly 24,000 small and medium-sized business leaders across 30 countries and territories in January. Harry Lowes, Head of ANZ Scaled, Global Business Group outlines the outlook for Australian businesses and how we’re comparing to the rest of the world.
Small businesses all over the world have struggled throughout the pandemic. But when Meta surveyed thousands last year, there were signs that recovery was underway. Then the Omicron wave came, impacting sales and supply chains and causing many to close their doors once again, including many in Australia.
Recently we released the latest Australian findings from our Global State of Small Business Report*, which found some stark insights including more than one in five Aussie small businesses (22 per cent) reported being closed – higher than the global closure rate (20 per cent), reflecting the environment when Australia and many other parts of the world were seeing a surge in COVID cases due to the Omicron variant.
Women-led businesses hardest hit
The survey also found unfortunately that women-led businesses have been hit the hardest during the pandemic. That remained sadly true during the Omicron wave, with closures remaining steady compared to July 2021, as one in four women-led Australian small businesses (25 per cent) reported that they weren’t operational.
Almost three quarters (72 per cent) of operational, women-led SMBs said sales were down on the previous year, compared to 64 per cent of men-led small businesses.
Despite Omicron setbacks, there are reasons for optimism in small business
If the last few years have taught us anything it is that there’s success to be found online – a quarter of the businesses surveyed globally said they were currently digital-only.
The pandemic meant more consumers pivoted to interacting with each other and businesses online, with half (51 per cent) of Aussie businesses surveyed that use the Facebook platform saying they had made at least a quarter of their sales digitally in the last thirty days.
More than half (56 per cent) of small businesses using Facebook reported they were confident in their ability to continue operating for at least twelve months, if current circumstances were to continue.
Digital the difference between surviving (or not) and thriving
For Casa de Vinos, it was the sense of surety through Victoria’s lockdowns as well as the potential boost in awareness that led the liquor boutique to move online. Founded by Jose Dymenstein in 2010 as a brick and mortar store that sells rare and collectible whiskies, gins and other spirits, the business pivoted online to attract new customers and secure tastings of his range.
Offering unique virtual tastings, the Casa de Vinos experience is unlike any other – Jose quickly began to rely on Facebook and Instagram marketing to promote the boutique’s new ranges. Since then, Jose has seen greater interest in product tastings than ever before, and 87 per cent of social sales have come through Meta’s family of apps.
Whatever challenges and opportunities small businesses will face in 2022 and beyond, the key takeaway from our report is that digital skills can be the difference between surviving to thriving.
However, it’s not always clear where to start, if you’re at the beginning of your online journey.
With more than 200 million businesses using Meta apps every month to reach over 3 billion potential customers, many businesses have used our tools to adapt and grow online. In Australia our free Boost with Facebook program has visited over 50 towns and cities, and trained over 25,000 small businesses since 2018. We’ve also partnered with Buy From The Bush to showcase and upskill regional small businesses, with 97 per cent of them owned by women. Supporting small businesses is imperative for Meta, because we know they’re critical to support the livelihoods for millions, and essential for communities to thrive.
*The latest iteration of Meta’s Global State of Small Business Report surveyed nearly 24,000 small and medium-sized business leaders across 30 countries and territories in January, 2022. You can read the full Global State of Small Business Report here.
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