Despite being hit harder by the Omicron wave, new data from Meta shows that women-led small businesses are showing up with resilience.
Women-led closure rates have risen 6 percent since July 2021, compared to little to no change for male SMBs. Specifically in the U.S., 24 percent of U.S. women-led SMBs were still not operational in January 2022, compared to just 18 percent of male-led businesses.
Still, resilience from women-led SMBs is being noted and in part has been due to quick acceptance of digital resources, with women-led small businesses leading the way with online tools. As they have shifted businesses online using these tools, they have often also done so more than male-led small businesses. In fact, globally, 57 percent of women-led SMBs reported to Meta that they are using digital tools to communicate with customers, compared to just under half of businesses led by men.
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“Small businesses led by women face a steeper road to recovery than those run by men,” said Sheryl Sandberg, chief operating officer of Meta. “Throughout the pandemic, women-run businesses are more likely to have closed or struggled with cash flow. Our latest survey shows that women have been hit harder during the Omicron wave, too. Despite these challenges, many women are finding success by shifting their businesses online.”
The company’s data found nearly half of U.S. women-led SMBs are making at least 25 percent of their sales digitally compared to 39 percent of women.
“Women are leading the way with the use of digital tools during COVID[-19],” Sandberg. “Our survey shows women are more likely to make at least a quarter of their sales digitally than men. This Women’s History Month, we should celebrate and support the entrepreneurs who have not only survived against the odds but thrived.”
Over the course of the last year, Meta reports that it has seen 73 percent of Facebook Groups related to entrepreneurship in the U.S. were created by women. Moreover, according to Meta, female entrepreneurs’ use of Facebook and Instagram underscores the role of digital tools in helping women-led businesses adapt online.
Across all countries, 40 percent of Instagram businesses that self-identify as women-owned have been active since the start of the pandemic with similar numbers seen on Facebook. Additionally, more than half of the Spark AR creators publishing effects for Facebook and Instagram are women (including women-led small businesses).
For its part, Meta has committed to “helping women-led businesses access the skills and education they need to thrive beyond the pandemic.” This month Meta’s #SheMeansBusiness, the company’s long-standing digital skills training program for women, will be expanding to address barriers in financial resilience and literacy with a new track that includes business financial basics and financial health, among others. Notably, the program has had over 1.5 million participants around the globe in 33 markets.
The company will also be continuing its efforts in supporting Black-owned women business owners by investing in women business owners through cash infusions. Last year, Meta donated $2 million to Reimagine Mainstreet. This year, Meta will donate by distributing to Black women-owned SMBs in cash awards of $50,000.
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