Will Michigan’s small businesses survive the pandemic?

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GRAND RAPIDS, Mich. (WOOD) — A narrow majority of small businesses nationwide don’t expect to rehire staff within the next six months, according to The Global State of Small Business Report released by Facebook Thursday.

The social media giant partnered with Small Business Roundtable to gauge trends emerging during the COVID-19 pandemic. Of the 35,000 small businesses surveyed worldwide over the last year, 51% expected to keep their staffing at pandemic levels for the next six months, and one-third anticipated the return to normal would take longer than six months.

MINORITY BUSINESSES HIT HARDER

Small businesses led by women and minorities have been hit harder during the pandemic, the report also found.

A third of Black-led small businesses reported closing, compared to 18% of small businesses owned by other groups. Women-led small businesses reported more sales declines than those led by their male counterparts, 54% compared to 47%.

More minority-led small businesses also reported workforce cuts than their white counterparts.

HOW MICHIGAN STACKED UP

More small businesses were shut down in February than four months earlier, at 26% globally and 22% nationally. In Michigan, the rate of small business closures was slightly higher than the national average, standing at 24%.

Michigan tied Illinois for the second highest rate of small businesses that cut jobs (34%), which was 7% higher than the national average. New York had the highest rate of small business layoffs (38%) and small business closures (31%) among all states.

There is a silver lining for the Great Lakes state: 76% of Michigan small businesses surveyed were confident they would stay open for the next six months under current conditions, which is 8% higher than the national average.

“The ability of SMBs to reopen, remain open, and recover… depends on the speed of the recovery and the support available,” the report concluded.

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