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SMB Closure Rates At 19% Globally: Meta Report

The report revealed that as the COVID-19 pandemic recedes, the greatest challenge SMBs are facing now is the current state of the economy, including inflation

New report says that small- and medium-sized business (SMB) closure rates were at 19 per cent till July 2022. This number has been fairly constant since January this year. 

However, the report has revealed that there are significant disparities across global regions persist when it comes to SMB closure rates, but the overall decrease has been observed since the outbreak of the pandemic.

The Meta survey took into account more than 22,000 small- and medium-sized business leaders across 30 countries and territories to understand the economic reality of entrepreneurs around the world.

The report revealed that as the COVID-19 pandemic recedes, the greatest challenge SMBs are facing now is the current state of the economy, including inflation.

“We found that 19 per cent of small businesses remain closed globally, a 1 per cent improvement compared to when we ran this survey in January”, the report mentioned.

The highest SMB closure rates were observed in North Africa and the Middle East, where 33 per cent of SMBs were closed. The lowest closure rate was in North America, where 18 per cent of SMBs were closed. 

As a result of the headwinds being experienced, nearly a quarter of SMBs (24 per cent) reported increasing their prices by 20 per cent or more in the past six months.

Amid the challenges, small businesses have continued to innovate and adapt to economic hardship by using digital tools: 51 per cent of SMBs said they use digital tools to communicate directly with customers. They also use digital tools for other business activities: 43 per cent use them to advertise and 36 per cent use them to sell goods and services.


As the economy continues to affect the trajectories of many small businesses, the majority remain cautiously optimistic about the future and their ability to continue running their business with 59 per cent of SMBs globally reportedly expecting to remain in business over the next six months, the report revealed.


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