Although the United States has been among the countries hardest hit by the pandemic, U.S. microbusinesses have weathered it well. Other than Germany, the U.S. reported the lowest percentage of businesses that closed, even temporarily, and only 66% reported a reduction in revenue.
Compare this with the 85% in Mexico, the hardest hit among the 10 countries surveyed that reported a reduction in revenue, according to a report released this week.
It seems the smallest businesses are the strongest, according to the GoDaddy Global Entrepreneurship Survey, which analyzed how the COVID-19 pandemic has impacted about 5,265 of the world’s tiniest businesses. The companies are located in Australia, Canada, Germany, India, Mexico, Philippines, Spain, Turkey, the United Kingdom, and the United States.
The research was conducted by Savanta in June 2020. Ninety-one percent of respondents were businesses with 10 or less employees.
The 2020 Global Entrepreneurship Survey sheds light on the perceptions of entrepreneurs enduring the COVID-19 pandemic. While 75% report a decline in revenue, the findings show how these entrepreneurs not only survive the economic crisis but also thrive. The study reveals that one in six started a new venture during the pandemic, while only 3% said they had to permanently close and 36% had to close temporarily.
While 2020 is poised to continue to be a difficult year, seven out of 10 businesses said they expect to recover within a year and 63% expect to experience 25% growth or more by 2025.
In addition, many businesses report they are deploying technology to increase their digital capabilities.
More than half with a business website report adding an online store include more content. In fact, 29% said they added new content, while 24% started or enhanced digital marketing activities and 17% said they added an online store.
For the first time in this five-year study, millennials made up the majority of respondents. They also showed they are twice as likely to merchandise products and services through social media, compared with baby boomers.
Some 68% of the companies participating in the survey said they did not receive financial assistance, with 3% of the 29% who said they did receive assistance saying it was not helpful.
U.S. businesses were among the least likely to report receiving government assistance.