2 In 5 GA Small Businesses See Lower February Sales: Facebook​​

GEORGIA — Forty percent of operational small businesses in Georgia reported their sales in February were lower than the equivalent month in 2020 prior to the pandemic, according to a recent survey.

The survey, which included 645 respondents in Georgia, also found that almost one out of every five small businesses in Georgia still remained closed in February 2021 — to be exact, 17 percent of Georgia small businesses reported not being operational or not engaging in revenue-generating activities.

These are among the findings included in the latest Global State of Small Business report, compiled through research conducted by social media giant Facebook.

This year’s report highlights the immense toll the pandemic has taken on small businesses, especially those owned by women and people of color.

This report surveyed 35,000 small businesses across 27 countries and territories in February 2021. Facebook partnered with the Small Business Roundtable to compile its U.S. data.

Nationwide, nearly 1 in 5 small businesses — or 22 percent — reported they were closed in February 2021, an increase from 14 percent in October 2020. In this case, a closure was defined as a business that was “non-operational” or not generating any revenue. The report did not distinguish whether the closures were permanent or temporary.

Compounding the closures, just over half of U.S. small business owners reported a drop in sales in January 2021 compared with January 2020.

Here are some other nationwide findings highlighted in the report:

• Just over half of those surveyed were confident in their ability to continue operating for at least six months if the pandemic and current conditions persist. A similar proportion said they didn’t plan to rehire laid-off or furloughed employees in that time, either.

• Perhaps unsurprisingly, a greater number of women-owned businesses in the United States reported a drop in sales this year — 54 percent compared with 47 percent of men-led small businesses.

• More than half of U.S. minority-led businesses reported a drop in sales compared with the previous years — 6 percentage points higher than other small businesses.

• Almost two-thirds of Black-led businesses and 46 percent of Hispanic-led ones reported a more than 50 percent drop in sales.

In Georgia, the numbers are better in some cases.

Three out of four small businesses in the state — or 75 percent — are confident in their ability to stay open for at least six months if circumstances remain the same, compared to the national average of 68 percent for the same metric. By contrast, 59 percent of operational small businesses in New York are confident in remaining open for six months.

A majority of small businesses in Georgia also said they did not have to reduce the number of employees as a result of the pandemic — 23 percent of operational small businesses said they did have to make such changes. This is slightly below the national average of 27 percent reducing employment.

For women-led businesses in Georgia, the numbers were better than the national average. A total of 38 percent of both women-owned and men-owned small businesses reported lower sales in February than in the equivalent month last year before the pandemic.

Georgia's minority-led small businesses saw close to the same numbers as the national average. Forty-six percent of operational, minority-led businesses in Georgia reported lower February sales this year than last year, compared to more than 50 percent nationally.

While 86 percent of minority-led small businesses in Georgia reported being operational or engaging in any revenue-generating activities, 46 percent of those businesses reported sales in February were lower than February 2020, prior to the pandemic.

The most small-business closures were reported in New York (31 percent), Pennsylvania (31 percent), and Massachusetts (30 percent.)

By contrast, the fewest closures were reported in Maine (9 percent), Idaho (9 percent), and Colorado (10 percent).

Sheryl Sandberg, chief operating officer at Facebook, said in a statement the report is a “timely reminder” that many small businesses are “still vulnerable and in need of support.”

“And those feeling the impact of the pandemic the most are female and minority-owned businesses — a further reminder that whenever crises hit, it’s the most vulnerable who are always hit the hardest,” Sandberg said.

Read the full Global State of Small Business report online.

Subscribe to your local Patch newsletter. You can also have them delivered to your phone screen by downloading from iTunes, or by visiting the Google Play store.