Differences Abound Between Small and Large Businesses During Pandemic
Mastercard released a report to light on the impact the global health crisis – and ongoing recovery – has had on small businesses globally.
The report, Recovery Insights: Small Business Reset, reveals that sales at small- and medium-sized businesses (SMBs) lagged behind larger companies by up to 20 percentage points at the peak of the crisis.
However, spending recovered in 2021, total sales at SMBs reaching 4.5% through August 2021 year-to-date compared to the same period in 2020, while e-commerce sales went up by 31.4%.
The report identified the following trends:
- Closures: Globally, small businesses that closed early in the pandemic were about three times as likely as larger businesses to remain closed long term.
- E-Commerce: Following shutdowns, the number of small and large businesses going online in LAC for the first time went above 200% in 2020, which reflects increased demand for an online sales channel.
- Entrepreneurship: Globally, one-third more small retailers launched in 2020 than in 2019, nearly 8x the number of larger firms created.
- Sectors – Lodging, Restaurants & Groceries: Where people are traveling, the trend to stay local has benefited small lodging companies (and hurt big city large hotels).
“Supporting neighborhood businesses has been a rallying point throughout the pandemic. However, the challenges faced have been very real, due to their dependency on local markets, local supply chains and tighter cash flows,” said Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute. “But we see brighter opportunities ahead. The shift to digital opened the door to the pandemic’s silver lining: a resurgence of entrepreneurship and innovation.”
You can view the complete Recovery Insights: Small Business Reset here. This is the fifth report in the Recovery Insights series; other reports can be found here.
Related Posts
Latest News
-
Being Vigilant of the 7 Benchmarks to end 2022
We are just about to end the fourth quarter of...
- Posted November 22, 2022
-
Inflation Heading Down, What Happens Now?
The Four Benchmarks to review that confirm inflation may be...
- Posted November 14, 2022
-
The Six Factors to Expect during the end of 4Q22
We are deep within the fourth quarter we thought it...
- Posted November 10, 2022
-
Puerto Rico Banks Deliver strong earnings, beating most banks
Puerto Rico Banks Transformed their operational model The Puerto Rico...
- Posted November 9, 2022
-
US Congress Discrimination affecting the Puerto Rico’s Healthcare Ecosystem
The market dynamics that changed the Healthcare Ecosystem as we...
- Posted November 8, 2022
-
MCS contributes over $5 million to support member healthcare
The insurer distributed the amount among 409 community pharmacies in...
- Posted November 7, 2022
-
Droguería Betances Launches 60th Anniversary Ad Campaign
Droguería Betances has launched a new advertising campaign, “60 Reasons...
- Posted October 31, 2022
-
Puerto Rico Food Industry Helps Communities in Aftermath of Hurricane Fiona
Over three-quarters of a million dollars in aid to...
- October 24, 2022
-
Medplus Solutions celebrates 10 years Saving Lives
Innovation and continuous growth Expansion of specialized and more...
- May 18, 2022
-
Amazon Web Services Expands Operations in Puerto Rico
Local Office Will Offer Services to other Caribbean Islands...
- April 22, 2022
-
García Padilla: Rubio Is No Friend of Puerto Rico
Governor Says Rubio's Remarks Confirm he Works for 'Vultures'
- February 26, 2016
- 15
You must be logged in to post a comment Login