CT BUSINESSES
CONNECTICUT — In April, 14 percent of small businesses in Connecticut reported being closed. That number climbed six percentage points in a follow-up survey taken in July.
Connecticut is among many states still struggling amid the ongoing coronavirus pandemic, according to the social media giant's most recent State of Small Business report released Friday.
Last year, Facebook began surveying small business owners around the world to find out how the pandemic is affecting them and what help they need to weather the challenges. For its eighth survey, Facebook in July surveyed more than 35,000 small businesses leaders across 30 countries.
The latest findings show some signs of recovery, but small businesses are still struggling.
Nationwide, just under 1 in 5 small businesses — or 18 percent — reported they were closed in July 2021, a decrease from 24 percent in February. In this case, a closure was defined as a business that was "non-operational" or not generating any revenue. The report does not distinguish whether the closures were permanent or temporary.
"Our State of Small Business reports have painted a consistent and sobering picture — the pandemic has been devastating for small businesses everywhere," Sheryl Sandberg, chief operating officer of Facebook, said in a news release. "Many have closed for good, and many of those who remained open have seen sales slump and staff laid off. And it has hit businesses led by women and under-represented communities the hardest."
Women and minority-led businesses are indeed more likely to be closed than the global average, underscoring findings from earlier this year.
Twenty percent of women-led businesses were closed globally, compared to 16 percent of those led by men. At 24 percent, Hispanic owners in the United States were the most likely to report their businesses as closed, a drop of two percentage points since February.
Minority-led businesses in the United States also reported lower sales compared to the same period in the previous year, with 44 percent doing so compared to 29 percent of other small businesses.
Despite more businesses reopening, owners are still struggling financially, according to the report.
In July 2021, 20 percent of small businesses in Connecticut reported being closed, compared to the national average of 16 percent small businesses that were closed.
Despite ongoing challenges, a majority of business owners believe they can weather the storm — about 64 percent said they are confident they can stay open for the next six months under current conditions.
The full Facebook report is available to view online.
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