Two-Thirds Of VA Businesses Optimistic Under Current COVID Condtions: Survey

VIRGINIA — A new report on the state of small and medium-sized businesses in Virginia and across the country had some good news on future prospects and some bad news on the challenges they’re still facing due to the COVID-19 pandemic.

Sixty-six percent of small and medium-sized businesses, or SMBs, in Virginia said they were confident in their ability to stay open for at least another 12 months under current COVID-19 conditions, four percentage points higher than the national average, according to the latest Global State of Small Business report, compiled through research conducted by social media giant Meta, owner of Facebook.

The highest percentage of the most optimistic businesses who expect to remain open for at least another 12 months was recorded in Michigan, at 71 percent, and the lowest was in Georgia, at 52 percent, according to the new report.

On the negative side, 36 percent of Virginia small and medium-sized businesses expect cash flow challenges in the coming year, which is higher than the national average and an increase from last July’s report.

Of the Virginia small businesses that are operating and participated in the survey, 34 percent are reporting lower sales than they were in July 2021, according to the report.

The Global State of Small Business report relied on data from a survey of a random sample of 23,840 small business leaders on Facebook across 30 countries, including 5,324 business leaders from the United States.

Surveys were conducted on Facebook between Jan. 3-17, when the omicron variant was nearing its peak in the United States. The reporting is limited to SMB leaders, defined as respondents who identified themselves as owning or managing a business consisting of fewer than 250 employees.

SEE ALSO: Nearly Half Of VA Businesses See Lower February Sales: Facebook

Since starting the surveys in 2020, Meta has consistently found that women and minority-led businesses have been hit the hardest during the pandemic, a trend that remained true during the omicron wave. In the U.S., both categories saw an increase in closures — to 25 percent for women-led businesses and 26 percent for those led by minorities.

In Virginia, 27 percent of small and medium-sized businesses that use the Facebook platform reported they had reduced their workforce as a result of the pandemic.

Approximately 22 percent of small and medium-sized businesses reported being closed, an increase of 6 percentage points compared to July 2021 and similar to levels seen in February 2021. This may reflect the impact of the omicron variant in the final weeks of 2021 and in early 2022.

In Virginia, about 18 percent of businesses that responded to the January survey reported being closed, an increase from the 11 percent of companies that reported they had closed in July 2021.

Business closure rates in January were highest in Texas (27 percent), Pennsylvania (26 percent) and Tennessee (25 percent), according to the report.

Read the full Global State of Small Business report online.