State of

Small
Business
Report
FA C E B O O K &
SMALL BUSINESS
R O U N D TA B L E

Vol 1 United States of America May 2020

Executive summary

Small and medium-sized businesses in the United States are being hit hard by the
COVID-19 crisis.

As part of our ongoing data collection effort with the World Bank and the OECD on the
Future of Business, Facebook conducted a survey, in partnership with Small Business
Roundtable, of approximately 86,000 people who owned, managed or worked for a small
and medium-sized business (“SMB”), including approximately 9,000 operators of “personal”
businesses, i.e. people who reported that they were “self-employed providing goods or
services” or that they “produce goods sold for personal income” but did not otherwise
self-identify as an “owner” or “manager” of a business.

The results provide a better understanding of which businesses are still operational and
which are not, where they are located, and what their most pressing needs are. Here are
the key results:

01 Small businesses are closing their doors and facing an

uncertain future.
• 31% of owners and managers reported that their SMB is not currently operating.
• Among personal businesses, that number rises to 52%, of which the majority
(55%) were led by women.

02 SMBs’ biggest challenges are access to capital and

customer behavior.
• 28% of SMBs said the biggest challenge they would face over the next
few months was cash flow.
• 20% said their biggest challenge would be lack of demand.

03 To adapt to the ongoing crisis, SMBs are turning to

internet tools.
• 51% of businesses report increasing online interactions with their clients.
• 36% of personal businesses that use online tools report that they are
conducting all their sales online.
• 35% of businesses that have changed operations have expanded the
use of digital payments.

2
EXECUTIVE SUMMARY

04 Small business owners are struggling to balance running a

business and caring for their households.
• Nearly half (47%) of SMB owners and managers report feeling burned out trying
to take care of business and household responsibilities at the same time.
• 62% of respondents report spending between one and four hours a day on
domestic or household care activities.
• More women owner-managers (33%) reported that household responsibilities
were affecting their ability to focus on work “a great deal” or “a lot” than
men (25%).

05 Employees are facing dire economic circumstances.

• Large majorities of employees don’t have access to paid sick leave (74%) or paid
time off (70%); among hotel, cafe and restaurant employees those numbers rise to
93% and 94%, respectively.
• Only 45% of owners and managers of SMBs reported that they would rehire the
same workers when their businesses reopened. The same was true for 32% of
personal businesses.

06 Still, SMB owners and managers remain optimistic and resilient.

• 57% of SMBs report that they are optimistic or extremely optimistic about the future
of their businesses.
• Only 11% of operating businesses expect to fail in the next three months, should
current conditions persist.

3
Table of contents

Introduction.................................................................................................................. 05

About the report..................................................................................................... 06

Definitions....................................................................................................................... 06

Section 01 COVID-19 is having a devastating impact on SMBs ....................... 07

Section 02 People and businesses are making serious efforts to adapt ............... 11

Section 03 But it’s not enough. People are going to need more help.................... 16

Conclusion........................................................................................................................ 21

Appendix 01................................................................................................................... 22

Appendix 02.................................................................................................................. 24

Appendix 03.................................................................................................................. 28

Survey methods overview........................................................................... 33

Acknowledgements............................................................................................. 34
 Introduction

Small businesses are the heartbeat of our communities—and they’re

in real trouble. The pandemic isn’t just a public health emergency,
it’s also an economic crisis. Since the first shelter-in-place orders,
it has been clear that many businesses were going to take a big hit,
but now we can hear from the people behind the businesses just
how big a hit they are taking.

This is the first in what will be an ongoing series of reports uncovering the situation
facing American businesses. These were planned before the virus struck, when we
had anticipated this first report would paint a much brighter picture. Instead, it brings
home the scale of the crisis that our economy is facing and helps point to where help
is most needed.

This report shows that, as of April 2020, nearly one-third of small and medium-sized
businesses have stopped operating. For the smallest businesses – those run by the
self-employed or for personal income – the situation is worse. More than half are
no longer operating. That is especially bad for women, who run the majority of
these businesses.

Still, the survey shows, the people who operate, manage and work for SMBs are
resilient; among them, there is hope and optimism about the future of their businesses.
They’re finding new ways to reach their customers online, they’re making adjustments
to how and when they do business, and they’re working hard to meet their family
obligations at the same time.

Whatever comes next, Facebook and Small Business Roundtable will continue to work
with SMBs to help them adjust to this new reality and reboot as we move forward
as a nation.

Sheryl Sandberg
COO, Facebook

John Stanford & Rhett Buttle

Co-Executive Directors, Small Business Roundtable

May 2020
About the report

Small and medium-sized businesses have been disproportionately affected by the

circumstances around COVID-19. At the same time, policymakers and researchers are
facing challenges obtaining timely information about the needs and outlook of SMBs.
We know many of the owners and operators of these businesses are on Facebook,
and wanted to use our platform to provide insight on the impact of COVID-19 on
the SMB economy.

We surveyed approximately 86,000 SMB owners, managers and employees about

the kinds of businesses they operated or worked for, whether those businesses were
operational or not, how many people they employed, what kind of access to capital
did they have, and what they expected their biggest challenges to be in the coming
months. The survey also inquired into how people’s family obligations were affecting
their ability to work, whether they had access to information about available resources,
asked people about their long-term business survival strategies and whether they were
hopeful things were going to improve.

All quotations in this report were sourced from a supplemental survey fielded to
the same population two weeks after the original survey to gather more qualitative
insights into the experiences of small and medium-sized businesses.

Definitions
• “Owners and Managers” refers to respondents who reported that they
“manage day-to-day operations of a business” or “own a business.”

• “Personal” businesses refers to respondents who reported “self-employed

providing goods or services” or that they “produce goods sold for personal income.”
(Examples of "personal" businesses include: selling clothing, making and selling
handicrafts, freelance writing, photography services. Personal businesses may
or may not be full-time or part-time ventures and may or may not have employees.)

• People who reported “working as a business employee/worker” as their only

response were considered “Employees.”

6
Section 01
COVID-19 is having a devastating impact on SMBs.

The lockdowns and social distancing, both mandatory and voluntary, occasioned
by COVID-19, along with the concomitant decline in demand for in-person goods
and services have had a devastating effect on America’s SMBs.

Business Closures
According to the survey, 31% of small and medium-sized businesses have shut down
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%).

Of the businesses that report being closed,

71% report having closed since March 1, 2020,
18% closed in February and 4% closed in January.
̋We have lost almost all clientele,
Chart 01 provides a summary of the percentage
and can not afford to pay for our of businesses that have shut down in the last three
home and bills.˝ months, by industry. Chart A3-1 and Chart A3-2
in Appendix 3 contain breakdowns by gender
and by region.

Businesses not currently operational or engaging CHART 01

in any revenue-generating activities

by Industry

50%

40%

30%

20%

10%

0%
Agriculture Construction Hotels Information Logistics Manufacturing Retail Services
Forestry Cafes Comms
Fishing Restaurants
Mining

7
SECTION 01

Among the reasons self-cited by closed Small Business Employees

business owners as to what, in particular,
Even when businesses remain open,
caused them to close: a majority (62%)
employees are experiencing financial
said it was necessary to comply with
cuts from lost employment or fewer hours
orders by governments or health
worked. While 3% of businesses reported
authorities, while a smaller share claimed
that their employee headcount actually
it was due to financial challenges (9%)
increased, 44% said they had to reduce the
or a lack of client demand (7%). The data
number of employees or workers at their
revealed some minor variations in the
business because of the pandemic.
reasons cited for closing, e.g., construction
Of businesses that reduced headcounts,
firms were more likely to cite logistical
22% let go more than 10 people. Larger
challenges (8% cf. 2% overall), information
layoffs of more than 50 employees hit the
and communications SMBs cited financial
Midwest the hardest (13% of businesses cf.
challenges (23% cf. 9% overall), and
5% overall.)
businesses led by women were more
likely than businesses led by men to Any time a business closes or has to lay
self-cite local ordinances (66% cf. 58%). off workers, it affects entire communities
of people who rely on income from jobs to
As an indication of potential resources
support themselves, and in turn, support
available subsequent to closure, only 7%
other local businesses and organizations.
of owners and managers (and 3% of
Some 65% of owners and managers who
personal businesses) reported having
employed more than one person reported
business interruption insurance.
that, since their business closed, their
workers were unable to get any additional
A FOCUS ON Employees salary or wages, end of service bonuses,
Many of the respondents to our survey unemployment benefits, or any discounted
were people who, until recently, worked for or partial health insurance. In keeping
an SMB. Their experiences are varied, but with a trend, for personal businesses
their responses share a common theme: that number rose to 77%.
they’re under stress, but remain optimistic.
Regardless of one’s employment situation,
reliable resources are scarce or vulnerable.
̋I was laid off and now am not being Only 25% of employees reported being
able to rely on household income from a
brought back. My business isn’t
spouse or partner, only 19% reported
making any money currently.˝ access to personal savings. A large share
of respondents said they don’t have paid
Of the 96% of SMB employees who report access to sick leave (74%) or paid time off
having a job in 3 months prior to the survey, (70%). Only 19% of retail employees report
74% worked full time and 20% worked part access to hazard pay. And among hotel,
time. And now, 29% of those same cafe, and restaurant employees, 94%
respondents report not working at all—44% reported no access to paid time off, 93%
of whom because the business they worked no sick leave, and only 18% said they
for has shut down, 22% because they were have access to health insurance.
let go and 10% because of local ordinances
to shelter-in-place or quarantine.

8
SECTION 01

Unemployed Small Business Workers

Job prospects for unemployed SMB
workers remains uncertain. According
to the survey: only 45% of owners and
managers of closed businesses reported
that they would rehire the same workers
when their businesses reopened, while
32% of personal businesses said they
would do the same. When responses
were analyzed by industry, 63% of hotels,
restaurants, and cafes expressed plans
to rehire the same employees, while among
firms in the agriculture, forestry, fishing,
and mining fields, this number falls to 27%.

Also noteworthy: 19% of owners and

managers of closed businesses reported
they were keeping their workers
and still paying part of their wages;
for personal businesses, 9%.

As might be expected, people are focused

on the essentials. Their top concerns
were having enough money to sustain
their household (51%) and having food
and basic supplies (46%). Relatedly, only
11% of employees report having applied
to receive any government or NGO
assistance in response to the pandemic.

Still, people remain hopeful. 59% of both

the employed and unemployed were at
least somewhat optimistic about their
future employment, while 16% were
somewhat pessimistic. Notably, and
perhaps unsurprisingly, employees of
hotels, restaurants, and cafes were
more pessimistic about their employment
prospects, with 24% reporting at least
somewhat pessimistic.

9
Section 02
People and businesses are making serious efforts to adapt. 

D
̋ espite the 50% decline in sales we still Workload
have to pay 100% of our fixed costs. One way to gauge the relative health of
an operational business is to query their
This is impossible. Rent was already high.
workload. Whether a business owner or
Now it makes up 50% of our gross income.˝ manager reports that they are working
more or less can serve as an initial indicator
of other long-term trends relative to the
Operational businesses might be open
health of their business, i.e., as the crisis
and running, but they still report
progresses, will they be making enough
significant challenges accessing the
money to get by?
capital they need to stay afloat, keeping
their supply lines open, making sure
their employees can work remotely, and
balancing increased family demands. Which business reported a
higher workload?
Prospects of Reopening
• There was slight regional variation among
Owners and managers of SMBs are known
businesses reporting a higher workload, with
to be resilient, but times are tough. While
24% from the Northeast, cf. 14% from the West.
two-thirds of closed businesses expect to
re-open in the future, including a slightly • In order to accommodate changing consumer
higher percentage of women than men behavior related to particular goods and
(71% to 62%, respectively), among the services, these businesses reported: extending
one-third who did not, 34% said it will be operating hours (24%), hiring more employees
because they can’t pay their bills or their (14%), and increasing supplies (14%),
rent (55% in the Midwest). Only 15% of among other strategies.
owners and managers of personal • Comparing sales over the last 30 days with the
businesses also cited financial pressure— same time in 2019, 15% of businesses reported
27% said they did not expect to re-open an increase, which when analyzed by gender,
for “personal reasons.” revealed a small variant (18% of women cf.
13% of men.)
And even when the time comes to re-open,
the path forward is not always clear. While • Still, although fewer men reported an increase
41% of owners and managers say they plan in sales, their relative increase was higher,
to use personal savings to reopen their with 35% of men reporting an increase of 100%
business when the time comes, 39% do not or more, cf. 11% of women.
know where they’re going to get the money.
Note: Chart A3-4 and Chart A3-5 show reported
Again, personal businesses face a different
differences in sales broken down by gender of
reality: only 28% plan to use personal owner and industry, respectively.
savings, while 53% are uncertain where
the necessary funds will come from.

10
SECTION 02

Our research showed that, as might be Finances and Access to Capital

expected during a time of serious upheaval,
some businesses are indeed seeing higher Three out of five businesses surveyed
workloads, including: 17% of all operational for this report (60%) say that they are
businesses and 24% of retail operations. struggling with some aspect of their
company’s finances. For businesses in
Indicative of the facts on the ground the American West, it was 65%.
however, most operational SMBs—a full
60%—reported a lower workload; including In particular, people reported their chief
in particular, compared to 65% of personal concerns with respect to finances and
businesses and 70% for hotels, cafes and capital were: paying their workers’
restaurants, again suggesting a locus of salaries and wages (29%) and paying their
this crisis. bills (28%). For hotels, restaurants and
cafes, those numbers rose to 44% and
54%, respectively.

Chart 02 details these areas of concerns

̋[We need] funds to pay rent and lease for businesses and personal businesses.
Chart A3-6 provides in Appendix 3 provides
payments after being forced to shut down. a breakdown by industry.
We have no income coming in and no way to
Approximately 40% of businesses reported
cover our bills. Our landlords both personal that their cash outflow has been greater
and professional still need to be paid.˝ than inflow over the past 30 days. For
service-oriented SMBs that number rose to
49% and construction-related SMBs, 55%.

Areas of financial concern—Personal vs Formal businesses CHART 02

Cash Flow in Past 30 Days

60%

50%

40%

30%

20%

10%

0%
Taxes Rent or Other None Employee Employee Employee Depts or Bills or
Lease of the Wages or Hazard Worker Loans Accounts
Above Salaries Pay Benefits Payable
I don’t know

0%All businesses
5% 10% Personal0%
15%2 businesses
25% 30% 35% 40% 45%

11
Cash flow in past 30 days CHART 03

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Outflow is Outfow is Outflow is about I don’t
less than greater than the same as know
inflow inflow inflow

All this thrash resulted in cash flow SMBs had more access to gift cards (15%).
appearing high on the list of pressing
Businesses are also turning to institutions
concerns for operational businesses:
for help. When asked what was the one
76% report being either very or somewhat
thing that would most help their business
concerned about their cash situation in
adapt to the pandemic, 45% of operating
the coming three months.
SMB owners and managers said zero-
Chart 03 provides response rates on the interest loans or other financial assistance.
state of cash flow for businesses over
the past 30 days.

To make ends meet, 41% of businesses

owners and managers reported they
could draw from personal savings
accounts, 11% from family and friends,
7% from community donations, and 4% f
rom gift cards for clients. Interestingly,
information and communication SMBs
had more access to community donations
(at 18%), while hotel, cafe and restaurant

12
Most needed policies to support businesses CHART 04

during the COVID-19 crisis

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Access to Govt. Loan Other Rent Salary Social Care of Tax Utility
loans and purchase repayment deferral subsidies security household deferral subsidies
credit of goods & deferral exemption members &
guarantees services dependents

Male owner or manager Female owner or manager

Half of SMBs (50%) reported applying to

government sources for capital support in Supply Challenges
the 30 days prior to the survey fielding, 11%
As the crisis grinds on, supply lines remain an
for traditional bank loans and 6% for capital
ongoing, possibly underappreciated concern.
grants from the private sector. Variations in
these figures were noted for personal Of the SMBs surveyed: 40% of owner-
businesses, ranging from 25%, 4% and 6% managers reported facing supply challenges,
respectively. For businesses in the Midwest, including 67% of retail SMBs, 35% of personal
these figures are higher: 60%, 16% and 9%, businesses and 50% of hotels, cafes, and
respectively. Other regions lacked restaurants. Specifically, they reported they
significant variation. were finding limited supplies of a specific
Chart 04 provides a full breakdown on product (61%), and delayed shipments (56%).
potential capital sources for traditional
and personal businesses. In this context, entrepreneurial flexibility is a
key to helping businesses pull through the
pandemic. To keep supplies flowing, 13% of
businesses are using new suppliers, 18% have
delayed orders, and 24% have adjusted their
delivery schedules (including 18% who cited
changing delivery procedures suggesting
safety is a concern). Businesses led by men
have engaged in these behaviors slightly
more, with 21% changing delivery procedures
and 20% delaying orders (cf. women at 15%
and 16%, respectively).

13
SECTION 02

While many of the people we surveyed In this survey, 9% of respondents

have been vigilant and proactive about (approximately 9,000 people) represented
keeping customers, employees, family themselves as “personal businesses,” over
members, and their communities safe from half (55%) of which were led by women.
the virus (48% reported cleaning their
offices and work spaces more frequently, As evidenced by the data, the economic
45% report providing gloves, masks, hand turmoil unleashed by COVID-19 is striking
sanitizers, or other protective equipment personal businesses particularly hard.
to their workers), 47% reported that they They are more likely to report being out
were also facing sanitation or cleaning of operation (52% cf. 31% of more formal
supply shortages. SMBs), more likely to struggle from basic
operational issues like logistics and
And in a related finding, 51% of owner- supplies, and less able to support remote
managers report increasing online work long-term (55% cannot sustain
interactions with their clients to reduce workers working from home for more than
the spread of the virus, in addition to a few days).
cleaning more often.
The people who run personal businesses
tend to report having less access to
A FOCUS ON
sources of money such as wage and job
Personal Business
income, personal savings, and income
By opening up new avenues of from another business, and consequently,
communication, the internet has enabled more difficulty paying their household
new opportunities for people to run expenses (40% cite this difficulty cf. 33%
“personal businesses.” Within this survey, of owners and managers of more
this term refers to people who responded formal businesses).
that they were “self-employed providing
goods or services” or that they “produce While entrepreneurial flexibility is a major
goods sold for personal income” but who determining factor in helping businesses
did not otherwise report being involved make it through this crisis, personal
in a business. For example: consider a businesses are at a disadvantage: only
person who sells homemade flowerpots 65% said they’ve made a change to
through Facebook Marketplace: it might accommodate clients or customers.
be their primary source of income or it Possibly evincing a steeper digital onramp,
might be a “side hustle,” they may be a personal businesses report using the
solo-prenuer or they might employ others. internet less than their formal counterparts
What matters for the purposes of this to help customers adapt: only 24% say they
survey is that they are engaged in this have expanded the use of digital payments
activity, do not identify as an employee and only 35% are offering online services.
and did not otherwise self-identify as a
“business owner or manager.”

14
SECTION 02

Turning to Technology ̋My company has Webex meetings

For many small businesses, the internet and team sites. We were able to bring
remains a lifeline.
home our work set up including
Seventy-nine percent of businesses say chairs and standing desks. I have
they’ve made a change to operations to
fiber optic internet at home. I'm set.˝
accommodate clients and customers,
including things like expanding the use
of digital payments (35%), and offering In the end, these tools are not a panacea.
curbside or home delivery (23% and 24%, According to the survey, about half of
respectively). Businesses in the Southeast businesses (51%) report that a majority
reported slightly more use of physical of interactions between clients/customers
adjustments, with 27% providing curbside and employees/workers need to be
delivery and 27% providing delivery conducted in the same physical location.
at home. Similarly, 35% of operational business
owners/managers report that they can
More broadly, the internet is helping
not work remotely, as did more men (42%)
businesses continue to operate during
than women (28%). There is notable, but
the pandemic; in the 30-days prior to the
expected variation by industry. While 17%
survey fielding: 23% of businesses reported
of information and communication SMB
using digital ordering tools, 16% service
managers say they could not work from
delivery tools, and 37% digital payment
home at all, 67% of hotels, cafes, and
tools. Thirty-six percent of operational
restaurant owners and managers
personal businesses that use online tools
reported the same.
report that they are conducting all their
sales online.

Businesses led by women are more likely

to be using digital tools, particularly with
online advertising (43%) and digital
payment tools (40%), compared to just
37% and 34%, respectively, of businesses
led by men. More generally, 40% of
businesses (and even 31% of personal
businesses) are making use of online
advertising to continue operating during
this pandemic.

As for how well these tools are serving

the needs of SMBs: 56% of business leaders
that use online tools said their business
makes at least half their sales digitally.
Again we find that women-led businesses
are making more use of online sales, with
59% saying at least half of their sales are
digital compared to 54% of businesses
led by men.

15
Section 03
But it’s not enough. People are going to need more help.

̋My business needs the economy opened up. Small businesses are
suffering and no amount of stimulus money can replace a thriving
and functional business.˝

At the time of this report, it remains unclear Among owners and managers of closed
when COVID-19 will abate, what conditions businesses: 57% said that the most
are necessary for that to occur, and what important action that had to take place
business will look like going forward. Many for their business to reopen was for the
business owners are worried. Our survey government to allow operation; another
in April captured some of this foreboding. 20% said securing funds.
Of those businesses that are currently
operational, 11% said that they did not Currently, just 28% of all surveyed
expect to continue in operation beyond businesses report having a line of credit
the next three months should current or a loan from a financial institution.
conditions persist. And as previously noted, 41% of owners
and managers plan to use personal
When business leaders considered their savings to reopen their business when
greatest challenges over the next few the time comes while 45% of operational
months, 28% cited concerns about cash businesses reported zero-interest
flow and 20% worried about lack of demand. loans or other financial assistance as
That is: businesses said they need access their most pressing need.
to capital and they need customers.
Midwestern businesses were more likely
Preparing to Reopen to report receiving financial support—with
40% saying they already have a credit line
For many businesses, demand will be a
or loan, compared to 23% of Northeastern
function of how close to “normal” conditions
businesses, 26% of Southeastern businesses,
are after COVID-19 abates. Businesses
and 24% of Western businesses.
will continue to be affected by the duration
of shelter-in-place orders, the extent of
restrictions as society begins to re-open,
the public’s perceived risk in engaging
with particular businesses, and the overall
economic situation that will influence
consumer and corporate spending.

16
SECTION 03

Addressing New Fears

As business owners and managers consider their options, they worry about the risks
of getting a loan or opening a line of credit. Despite their need for access to capital,
47% of open businesses were afraid of borrowing money — unsure if or how they could
pay it back. Just over half of operational business owners reported that they have
access to personal savings, but were not clear if it would be enough to save their
business. And personal businesses expressed heightened uncertainty about where
to apply for loans in the first place.

Chart 05 details areas of concerns for traditional and personal businesses.

When asked what were their three most desired policies to help keep their businesses
open, owners most often cited: credit access and guarantees (36%), salary subsidies
(38%) and tax deferrals (34%). Reflecting the fact that attending to domestic work is
integral to one’s overall ability to work, owners and managers also cited the need for
help taking care of household members (23%). Women reported this need more often
than men (27% cf. 19%).

Main challenges to capital/funding— CHART 05

Personal vs Formal businesses

60%

50%

40%

30%

20%

10%

0%
I am afraid of I am going into I do not know I do not know where Other
borrowing money debt and do not how to apply to get the money
because I am not know how for a loan I need to keep the
sure can pay it back to handle it business open

All businesses Personal businesses

17
SECTION 03 SECTION 03

Finally, despite public discussion around pandemic (including 34% of businesses

the issue, only 9% of businesses listed in the Midwest), the overall lack of
exemptions from Social Security taxes as information was less of a concern than
one of their top three desired interventions. the trustworthiness of the information
in circulation. Indeed, a majority (56%)
Chart 06 breaks down these policies by
of people who said information access
response rate for female and male-owned
businesses. Chart A3-7 in Appendix 3 shows
was a challenge said they were in the
a breakdown by industry. presence of so much contradicting
information, they didn’t know who or
A FOCUS ON what to trust.
Access to Information
To get information, open businesses report
Although one of the prerequisites to using internet news (55%), news from
securing additional help is information governments and health authorities (52%),
about where to find it, only 4% of SMB social media (45%), friends and family (28%)
owners and managers chose “information and online support groups (20%).
access” as their primary challenge.

While 28% of business leaders said they

did not have enough information to make
decisions about their business during this

Most needed policies to support CHART 06

businesses during the COVID-19 crisis

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
an re ns

rv an s

fe en n

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Agriculture, Construction Hotels, cafes, and Information and Logistics Manufacturing Retail Services
forestry, fishing, restaurants communications
and mining

18
SECTION 03

Domestic Obligations in Context

Finally, sources of aid or avenues of assistance must take account of the pressing need
for help in the household. 10% of owners and managers of open businesses reported
taking care of household members (children, elderly, dependent adults, and so on) as
their chief concern. Nearly half (47%) of those reported feeling burned out trying to
take care of business and household at the same time. And 29% were concerned
about bringing COVID-19 home.

Amount business reponsibilities affect household C H A R T 07

care duties during COVID-19

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
A great deal A lot A moderate amount A little Not at all

Owner or manager Employees

CHART 08

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
A great deal A lot A moderate amount A little Not at all

Male owner or manager Female owner or manager

19
SECTION 03

When asked how their household ̋Funds, I need funds... being furloughed
responsibilities affected their ability to
from my full time job and released from
focus on work, owners and managers
reported that it affected them “a great my part time as a single mom of 2 kids
deal” or “a lot” at a higher rate (29%) is very stressful."
than employees generally (26%). Women
owner-managers reported the same Charts 09 breaks down the number of hours
at 33% compared to 25% of men. spent on household activities for owner
managers, by gender.
Charts 7 and 8 detail responses on how
household responsibilities affect ability Alongside their domestic responsibilities,
to work, by owner-manager status and gender.
34% of businesses report that it has been
Charts A3-8 and A3-9 in Appendix 3 include
summaries for the impacts of business difficult to pay their household’s usual
responsibilities on household responsibilities. expenses in the last 30 days. Among
personal businesses that number is 40%,
As for workload: 62% of respondents and among owners and managers of
report spending 1 to 4 hours on domestic hotels, restaurants and cafes it’s 59%.
or household care activities. A lower
percentage of men (21%) and a higher These results highlight the close links
percentage for women (29%) reported between personal obligations and
that household responsibilities significantly business operations and how the
affected their ability to focus on work demands of home can affect the overall
responsibilities (cf. 26% overall). And stability of the marketplace. The needs
among the 13% of respondents who of businesses are deeply intertwined
reported spending more than six hours with the obligations of the people
per day on household activities, there were who run them.
slightly more women than men (14% cf. 12%).

Hours per day spent on domestic or CHART 09

household care activities

30%

25%

20%

15%

10%

5%

0%
<1 1-2 2-3 3-4 4-5 5-6 6-10 10-14 14>

Male owner or manager Female owner or manager

20
Conclusion

This report paints a picture of an economy

in crisis — but it is not a crisis that is being
felt evenly. Everywhere we look in the data
we see things are tougher for certain types
of firms, like personal businesses or
businesses like hotels and cafes. Demand is
a concern, and businesses need money to
stay afloat, but many owners are hesitant
about debt. Some have savings or a spouse
to lean on, others do not.

And yet, despite all the challenges present,

the crisis has not eliminated a sense of
optimism. That optimism, coupled with
evidence of businesses acting quickly and
creatively to find new ways to reach and
serve customers, shows the entrepreneurial
spirit is alive and well.

21
APPENDIX 01

Additional community voices

The following is a selection of some of “With no money coming in Bill's aren't

responses to the open-ended survey paid and utilities, rent,insurance aren't
questions. paid and they still want their money...loans
take too long, now we are able to open
“I was trying to grow a business. With the but damage has been done...don't know
pandemic that has not happened. I was how long Business will take to get back to
able to make a few sales. All regular the momentum we were at before Covid”
avenues of sales were closed and access
to new accounts were closed as well. “Not enough motivation--people are
I need the country to reopen to succeed.” afraid to work and/or are feeling so much
pressure that it doesnt feel worth it. The
“I'm a translator who has pretty much pay isnt enough of an incentive as it used
always worked at home although I do go to be because of the risks involved in
to various public meetings and conferences working outside the home.”
to network and that's gone. The chief
difficulty is that my clients, the media “The primary industry segment we
and publishers are strapped now and serve, meetings/events/weddings, has
not paying me or paying me very slowly.” essentially disappeared. We need to
promote our business to new & different
“Most of our staff was laid off from other market segments in order to maintain
employers. Though we have assets to enough revenue to endure the shut downs.”
compensate them for two pay periods,
we’re not sure when sales and distribution “I teach preschool which now is all online.
will become ‘normal’ in this post-quarantine I need educational support & resources -
environment. A grant COULD assist knowing whose music I can use, whose
with this.” books I can read online & whose printable
resources are free/downloadable.”
“We need to stabilize our business for
the long term in order to bring employees
back from layoffs.”

“I rely on other businesses to operate for

my business to function properly. I need
things to go back to normal in order for
my company to make an income.”

22
APPENDIX 01

“I don't really need support for my

business because that has not been
affected. What has been is that my business
is based on dealing with customer service,
face to face and usually in there home or
mine. It's a cosmetic/skin care business
and now it all has to be done on line. It is
completely new to me and I'm having a
hard time getting used to it.”

“We need financial support as well as

better guidance from public health
about what is safe. We need child care
and schools to open. We need government
testing and tracing capability.”

“Access to customers. Stay at home

doesn’t always mean shopping from home.
All business cannot be digital. I’m not
suggesting opening doors to nonessential
businesses, but until those doors do open,
we need financial support.”

“We definitely need financial support

without the fear of being charged enormous
amounts later.”

“Workers have reduced hours and been

laid off. We all need more money than $1200.
Providing money so people can keep
themselves safe, be it paycheck protection
or working from home or spending money to
increase safety standards and protocols.”

23
APPENDIX 02

Regional breakout charts

When was this business last operational?

1 00 %

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Before January 1st, January 1 to 31, February 1 to 29, March 1 to 31, April 1, 2020
2020 2020 2020 2020 or later

Midwest Northeast Southeast West

What was the main reason this business closed?

1 00 %

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Bankruptcy Client or Don’t Employee/worker Financial Govt or health Logistical Other Owner
customer-related know related reasons challenges authority orders challenges household
reasons related reasons

Midwest Northeast Southeast West

24
APPENDIX 02

Do you expect that this business will re-open in the future?

1 00 %

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Maybe No Yes

Midwest Northeast Southeast West

In the past 30 days, which of the following sources

of capital did this business apply for?
1 00 %

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Bank loans Crowd sourced Did not apply Government Grants from private Grants from Other
capital for any loans sector companies the government please specify
source of capital or agencies

Midwest Northeast Southeast West

25
APPENDIX 02

Is this business planning to apply to any of these sources

of capital in the near future?
1 00 %

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Midwest Northeast Southeast West

No Not sure Yes

Did this business have to change anything to accommodate

its clients or customers during the COVID-19 pandemic?

West

Southeast

Northeast

Midwest

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

26
APPENDIX 02

Which of the following changes has this business adopted to

accommodate the clients or customers?
1 00 %

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Expand use of digital Offer free cancellation Other Provide curbside delivery Provide delivery Provide online
payments e.g. payment or changes of please specify at business location of services services
by phone online etc pre booked services or goods at home

Midwest Northeast Southeast West

Do you feel that you have access to enough information to

make decisions about this business during the COVID-19 pandemic?

West

Southeast

Northeast

Midwest

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

No, No, Not sure Yes,

I do not have all the information I need I do not have any information at all I have sufficient information

27
APPENDIX 03

Response charts in detail

Businesses not currently operational or engaging in CHART A3-1

any revenue-generating activities by gender

50%

40%

30%

20%

10%

0%
Male owner or manager Female owner or manager

Businesses not currently operational or engaging CHART A3-2

in any revenue-generating activities by region

50%

40%

30%

20%

10%

0%
Midwest Northeast Southeast West

28
APPENDIX 03

Number of full-time employees working prior to COVID-19 CHART A3-3

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Agriculture, Construction Hotels, Information and Logistics Manufacturing Retail Services
forestry, cafes, and communications
fishing, and restaurants
mining

1 person/me 2-4 people 5-9 people 10-49 people 50-249 people 250-499 people

Business sales for the last 30 days (in 2020) CHART A3-4

compared with the same month last year (in 2019)

60%

50%

40%

30%

20%

10%

0%
Lower than last year Same as last year Higher than last year N/A or I don’t know

Male owner or manager Female owner or manager

29
APPENDIX 03

Business sales for the last 30 days (in 2020) CHART A3-5

compared with the same month last year (in 2019)

60%

50%

40%

30%

20%

10%

0%
Lower than last year Same as last year Higher than last year N/A or I don’t know

Construction Hotels, cafes, Retail Services Information and

and restaurants communications

Areas of financial concern by business segment CHART A3-6

250%

200%

150%

100%

50%

0%

Construction Hotels Informational Retail Service Personal All

Businesses Businesses Businesses Businesses Businesses Businesses

Bills or Accounts Payable Depts or Loans Employee Worker Benefits Rent or Lease
Employee Wages or Salaries Other concerns Employee Hazard Pay Taxes

30
APPENDIX 03

Most needed policies to support businesses CHART A3-7

during the COVID-19 crisis

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
an re ns

rv an s

fe en n

rr t

id ry

pt rity

nd s a ld

rr x
er

id lity
fe en
se ds ase

fe Ta
de ym oa
te dit

al

en nd

al
pe er ho
bs la
th
ic d

rr t
ar d c oa

s
ie

io

bs Uti
de R

em cu

ie
a L

su Sa
es

es

al

ts
O

de mb use
o h
gu an o l

ex se
go urc
t

de
e o
s

al
of . p

m fh

su
s

ci
ce

re
t

o
So
ov
Ac

e
ar
G

C
Agriculture, Construction Hotels, cafes, and Information and Logistics Manufacturing Retail Services
forestry, fishing, restaurants communications
and mining

Amount business responsibilities affect household CHART A3-8

care duties during COVID-19

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
A great deal A lot A moderate amount A little Not at all

Owner or manager Employees

31
APPENDIX 03

Amount business reponsibilities affect CHART A3-9

household care duties during COVID-19

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
A great deal A lot A moderate amount A little Not at all

Male owner or manager Female owner or manager

Hours per day spent on domestic CHART A3-10

or household care activities

30%

25%

20%

15%

10%

5%

0%
>1 1-2 2-3 3-4 4-5 5-6 6-10 10-14 <14

Male owner or manager Female owner or manager

32
SURVEY METHODS OVERVIEW

This survey was fielded on our platform in April of 2020 For results reporting we use only weighted data and
to a random sample of Facebook users. Our sample is screen out certain results.
representative of all Facebook users, regardless of their
activity on the platform in a commercial capacity. • Data were weighted using a two-stage procedure

Results for businesses above are reported from answers − First, inverse-probability individual-level sampling
collected from those who claim to be an owner or and non-response weights were constructed using
manager of day-to-day operations of a business with a logistic regression at the population level (i.e. one
fewer than 500 full-time employees. for each oversample and one for everyone else)

• This included an over-sample of Facebook Marketplace − Second, overall weights were balanced using
Sellers, Facebook Business Page administrators and standard cell-weighting techniques to correct
Facebook advertisers, though we did weight their for our over-sampling of specific sub-populations
responses downward to be proportional to the total
− The sample weighting targets were derived
US Facebook population for final reporting of results
from on-platform FB MAP population statistics.
• The survey invitation was shown as an invitation on
− When examining a distribution of our respondents
people’s News Feeds. Opening the survey,responding
by business headcount we find that we have
to the survey, and completing the survey were all
a somewhat higher share of larger SMBs replying
entirely optional
as compared to some other sources that are
• If a respondent chose to skip any question in thesurvey suggestive of the total US population (e.g. 2017
they were allowed to do so with no reminders or prompts Census of US Businesses). We find that those
to answer of any kind represented on Facebook tend to come from

• Respondents were not compensated in any way for service-oriented industries (3% come from

either starting or completing this survey manufacturing, 15% from retail or wholesale
trade, 31% from services, 4% from logistics, 8% from
For this survey we sent out a total of 1.9 million invitations. hotels, cafes, and restaurants, 8% from construction,
In total, we surveyed approximately 86,000 people. and 4% from agriculture, farming, forestry, fishing
Ultimately we were left with 38,078 total surveyed business and mining with the remainder listing "other" as
owners and managers nationwide, 39,104 business their main industry.
employees, and 8,694 operators of personal enterprises
− We furthermore find that 33% of businesses
based upon their self-reported work status.
reachable through Facebook are urban, with 42%
• Respondents could have seen a total of 136 question suburban and 25% rural.
or statements in the survey, but were allocated in a
• Results are not reported where a given question
semi-random fashion to ensure overall survey length
had fewer than 100 respondents
was below 30 items for the longest path
− This includes demographic-based sub-reporting
− All respondents were asked a core set of questions
e.g. by gender or by region
around demographics and certain business-f
ocused questions

− Business owners and managers and operators

of personal enterprises were randomly assigned to
one of five thematic question blocks

− Employees, closed businesses, and unemployed

persons were given separate sets of questions with
deterministic content

33
Acknowledgements
Thank you to everyone who took the time to help
us prepare this survey. Thank you to everyone
who took the time to fill it out. Thank you to the
researchers who processed the results and the
writers who wrote this report. And thank you to
our partners who took the time to review it.

Special thanks to: Nick Bloom (Stanford), Mark

Duggan (Stanford), Theresa Kuchler (New York
University, Stern School of Business), Johannes
Stroebel (New York University, Stern School of
Business), and Pierre Yared (Columbia Business
School) for valuable discussions and feedback.
All remaining errors are our own.