Connect with us

SOCIAL

Facebook Publishes New Report on the Impact of COVID-19 on Small Businesses

Published

on

facebook publishes new report on the impact of covid 19 on small businesses

Of all the sectors impacted by the COVID-19 pandemic, SMBs look set to be among the hardest hit. 

Small to medium businesses generally operate at very tight margins as it is, and they don’t have the same safety nets that larger corporations are able to fall back on. As a result, predictions suggest that up to 7.5 million small businesses in America are at risk of shuttering permanently in the coming months unless they’re able to find a way to recoup costs, and get back to some level of regular operation.

The expanded impacts of this – on employment, opportunity, local economies, etc. – are difficult to fully comprehend. But while the forecasts are dire, it’s likely of more value to get some sense of what’s actually happening on the ground. What are SMBs seeing at the moment, how are they dealing with the impacts of the pandemic, and how do they feel about their situations moving forward?

This week, Facebook has published a new report to shed some more light on this, incorporating responses from over 86,000 people who own, manage or work for a small to medium-sized business. The data also includes 9,000 operators of “personal” businesses (i.e. people who reported that they were “self-employed providing goods or services”).

The report provides a range of insights into SMB sentiment, and may also highlight rising areas of opportunity moving forward. You can read Facebook’s full report here, but below are some of the key points of note.

First off, Facebook’s report provides some scale as to how many businesses have actually been significantly impacted by the COVID-19 lockdowns, with a look at the percentage of SMBs in each sector that are currently unable to operate.

Advertisement
Facebook COVID-19 SMB research

Many businesses, of course, have been able to shift to alternate operational models, like working from home or putting more focus on delivery. That makes it difficult to get a true sense of the full impacts of the current lockdowns – but this chart gets a little deeper into the actual reality of the situation. 

As per Facebook:

“According to the survey, 31% of small and medium-sized businesses have shut down [entirely] in the last three months. The situation is worse for personal business (52% of which report shutting down), hotels, cafes and restaurants (43%) and services like wellness, grooming, fitness or other professional services (41%).”

Most of these trends are as you would expect, with high exposure businesses going into forced hibernation. But it is interesting to note the scope of the impacts, with all sectors seeing at least some closures. The numbers also wrap some further context around the 36 million unemployment claims in the US over the past six weeks.

The question, then, is how many of these businesses expect to recover, and rebound once the lockdowns are lifted?

That’s obviously difficult to answer, as we don’t know how long it’s going to take to ‘snap back’ to our normal way of life, and the longer the forced closures remain in place, the worse the economic situation gets.

In general, however, the majority of SMBs remain cautiously optimistic. 

Advertisement
Facebook SMB report

There are a lot of ‘maybe’s here, but most notably, there are very few ‘No’s. That reflects the pervading uncertainty, but also provides some hope of getting most people back into employment, and the economy back on track, at some stage.

In the report’s further notes, Facebook also provides some context as to current impacts on revenue, even for those businesses that have remained in operation.

Facebook COVID-19 SMB report

Unfortunately, for almost everybody, 2020 is essentially a write-off for growth plans.

But as noted, there are some indicators of future potential, in addition to enduring owner optimism/hope.

Facebook COVID-19 SMB report

More businesses are exploring online connection opportunities and digital payments, which are both progressive steps towards the next generation of consumption.

That may actually end up being the biggest long-term shift we see stemming from the COVID-19 shutdowns. With consumers forced to shop online, many will become more accustomed to the convenience of such, aided by the simplicity of digital payments. For those already working in the digital sector, that could lead to ongoing opportunities to help usher more businesses along this shift, with many, potentially, putting increased reliance on digital connection, and shifting their business models in line with what the next generation of consumers are growing to expect.

Indeed, while eCommerce accounted for only around 16% of total US retail sales in 2019, that figure is steadily inching upwards year after year, a trend that’s expected to continue.

Statista eCommerce shift

COVID-19 may exacerbate this shift – and while retail is only one of the sectors highlighted here, the trend may well be indicative, which could prompt more businesses to consider their options for digital operations, meeting consumers where they’re spending more and more of their time.

Essentially, the lockdowns have forced many businesses to look at their online opportunities, which could have benefits going forward, and could even help SMBs expand their reach into new markets in future. But the immediate path ahead remains tough and uncertain, at least until some sort of breakthrough is reached.

Hopefully, there are enough alternative revenue paths to keep most SMBs running as we navigate through the pandemic – but it may well be worth exploring digital options, where possible, to align with broader consumption shifts.

Advertisement

You can read Facebook’s full, 36-page “State of Small Business Report”, which includes a heap of more specific insights and data, here.

Socialmediatoday.com

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

SOCIAL

Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

Published

on

By

Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

Advertisement

This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

Catering to specific audience boosts your business, says accountant turned coach

Published

on

Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

Advertisement



“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

Instagram Tests Live-Stream Games to Enhance Engagement

Published

on

Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

Advertisement



Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS