Facebook Details More Initiatives Aimed at Helping SMBs

Facebook released its most recent Global State of Small Business Report and detailed several initiatives aimed at continuing to support small and midsized businesses in their recovery from the pandemic. “SMBs are in our DNA,” Facebook vice president of small business Rich Rao told Adweek, adding on the eighth edition of the report, “There are some bright spots in the recovery, but there is still a long way to go. Fewer small businesses are closed than previously, and those that are open still face cash flow and employment challenges. Minority-owned SMBs tend to be more severely impacted. With National Small Business Week on tap in the U.S. next week, Facebook shared some steps it is taking to help SMBs respond to the challenges they are facing. The Good Ideas Exchange, which will take place in October, will bring owners of SMBs together with leaders from companies including American Express, Facebook, Indeed, UPS and Vimeo to take part in a hackathon to develop solutions that can help, and those that are green-lit will be revealed early next year. Facebook also introduced two new solutions with the struggles of minority-owned businesses and cash flow issues in mind. The company conducted a pilot test of the Facebook Invoice Fast Track program with its diverse suppliers and, beginning Oct. 1, the program will be extended to all eligible small businesses in the U.S. Chief operating officer Sheryl Sandberg explained in a USA Today op-ed, “Government can assist, of course, but perhaps the best sources of help for small businesses are bigger businesses. For example, we heard firsthand from our small business vendors in the early days of the pandemic that they were struggling with cash flow. They told us this is often because their invoices are rarely paid early, or even on time, for that matter. It can take up to 90 days for small businesses to get paid for their work—a lag in revenue that can be too much to bear on tiny pandemic-era margins.” Facebook will put $100 million toward getting immediate cash to SMBs by buying their invoices for goods and services and assuming the responsibility of collecting on those invoices, with Rao noting that end customers must have a credit rating of B+ or better. The social network is also introducing a new small business funding resource to help connect SMB owners with business resources, networking groups and purpose-driven grant and loan opportunities. Finally, citing findings from its Global State of Small Business Report that one-fifth of respondents expect the final three months of the year—the holiday shopping season—to account for the majority of their sales for 2021, Facebook is bringing back Boost With Facebook Good Ideas Season. Starting next month, small business owners can access digital skills training free resources, networking opportunities and thought leadership to help prepare for their most crucial selling period. “Having businesses show other businesses makes it less daunting,” Rao pointed out. Rich Rao Key data points from the Global State of Small Business Report—which surveyed over 35,000 small business owners across 30 countries and territories in July and August—follow: 18% of small businesses globally said they were currently closed, down from 24% in February. Those numbers were 16% and 22%, respectively, in the U.S.For businesses that are operating globally, 36% reported reduced employment in July, up from 30% in February.20% of businesses owned by women were closed worldwide, versus 16% of those owned by men.Hispanic-owned businesses were the most likely to report being closed in the U.S., at 24%, down from 26% in February.Minority-owned businesses in the U.S. were more likely to report lower sales compared with 2020, with 44% doing so, compared with 29% of other small businesses.88% of respondents are using digital tools, up from 81% in February, and more than one-half expect to continue doing so on a permanent basis.60% of small businesses reported some form of difficulty in paying business-related expenses, while 26% were struggling to pay down loans or debt, 25% to pay bills, 25% to pay rent and 24% to pay employee wages. Sandberg concluded in a Newsroom post, “Facebook is in the business of small business. More than 200 million businesses use our apps every month to create virtual storefronts and reach customers, with millions using our tools to help them make the transition online since the start of the pandemic. Whatever challenges they face, Facebook will continue to do all we can to help them find success online.”

Diversity, Equity and Inclusion

Facebook Details More Initiatives Aimed at Helping SMBs

The company focused on minority-owned businesses and cash-flow issues

David Cohen

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