• About
  • Article PDF
  • White Papers
  • Listening Tours​
  • Contact
  • Support Us
  • Advertising & Sponsorships
Thursday, January 26, 2023
No Result
View All Result
  • Login
Times Of Entrepreneurship
Growth and Equity for a Changing World
Times Of Entrepreneurship
No Result
View All Result

Mastercard Report: 20% of the World’s Small Businesses Closed For Good During the Pandemic

Companies with an Online Presence or a Location in a Residential Marketplace Fared Best

by Skyler Rossi
November 11, 2021
in Research
Reading Time: 2 mins read
0
Share on FacebookShare on Twitter
Sorry we’re closed sign on painted pastel door. Shut down, closed, business problems, COVID-19 concepts.

Small- and medium-sized businesses with presences online and in residential marketplaces did the best during the pandemic, according to the Small Business Reset report, produced by the Mastercard Economics Institute last month. As workers and tourists stayed home, businesses in central business districts suffered the most, the report indicates. 

Mastercard Economic Institute estimates 1/3 of small and medium sized businesses in the world that closed in April 2020 remained closed six months later, and 1 in 5 small businesses remained closed 12 months later. That means small and medium sized businesses were more than three times as likely to close than large companies.

Small and medium sized businesses make up 90% of businesses and more than half of jobs across the world, according to an analysis by the World Bank. “Thus, the economic impact when small businesses close their doors or cut staff is consequential, creating a long-term ripple effect across a local economy,” according to the Mastercard report.

Stay-at-home restrictions made the gap between spending growth at small and medium businesses versus large businesses grow 20 percentage points at the start of 2021, according to the report. Climate change also played a role — colder in the Northern Hemisphere contributed to people being more likely to shop online, according to the report. 

As supply-chains ground to a halt, prices surged to levels many small and medium sized businesses couldn’t afford. 

Online turned out to be a haven for some small and medium sized businesses, especially those who had an existing digital presence. Many more moved their products online — businesses that made the shift online for the first time tripled in July 2020 compared to pre-pandemic levels, according to the Mastercard analysis. This rate has continued to be elevated globally, according to the report. However, businesses with products that are not able to be sold online — such as barbers, electricians and restaurant owners — struggled against the shift away from in-person business, according to the report.

At the same time businesses were closing, others were starting. About 32% more small or medium sized retailers were launched last year than 2019, according to the report. Sales at small and medium sized retailers grew 4.5% through August 2021 compared to the same period in 2020. Though, this is still lagging behind large retailers. 

The next best place was residential areas rather than busy business districts where people seldom went once the pandemic put workers and tourists home.

For instance, in New York City, spending at small and medium sized businesses in the business districts was still down — it was 73% of 2019 levels in August 2021, according to the report. Meanwhile, these businesses in the outer city neighborhoods saw growth from before the pandemic– 124% of 2019 levels. 

It’s a trend the analysts noticed around the world. 



This story and others on Times of E are made possible by a sponsorship from the Ewing Marion Kauffman Foundation. The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that provides access to opportunities that help people achieve financial stability, upward mobility, and economic prosperity – regardless of race, gender, or geography. The Kansas City, Mo.-based foundation uses its grantmaking, research, programs, and initiatives to support the start and growth of new businesses, a more prepared workforce, and stronger communities. For more information, visit www.kauffman.org and connect with www.twitter.com/kauffmanfdn and www.facebook.com/kauffmanfdn.

Tags: Mastercard Economics Institute
Skyler Rossi

Skyler Rossi

Related Posts

woman bike messenger

REPORT: The Surprising Way Uber and Lyft Spur Entrepreneurs

by Skyler Rossi
February 8, 2022
0

The gig economy has an unexpected benefit: allowing people to dream. Ride-sharing apps and other easily-accessible gig economy platforms could...

lightbulb by a computer

Top 20 University Entrepreneurship Competitions Revealed at Challenges Met, Opportunities Ahead

by Skyler Rossi
January 31, 2022
0

A recent event by Times of Entrepreneurship explored the top university entrepreneurship programs and the future of the discipline.

white man smiling in front of a wall

Commentary: University Entrepreneurship: Education or Venture Creation?

by Torsten Kolind
January 27, 2022
0

Torsten Kolind Today, virtually every university on the planet has an entrepreneurship course. Most have centers, some run competitions, and...

men gathered around large silver tanks

Commentary: Social Entrepreneurship Leads the Charge to Reinvent Capitalism

by Brigit Helms
January 25, 2022
0

Husk combines solar with biomass to generate low-cost 100% renewable power 24/7. Photo Credit: Husk Does capitalism need a reboot?...

Options about your Options – How to think through your company’s option program

5M People Became Entrepreneurs in 2021, a 20-Year-Record

by Skyler Rossi
January 17, 2022
0

Spurred by the economic disruption and emotional disclocation brought about by the pandemic, more people turned to entrepreneurship in 2021...

Man on a snowy mountain

How Much Nature do You Need? A Data Company from University of Oregon has an Answer

by Shirly Piperno
December 13, 2021
0

Jared Hanley, CEO and founder For our Startup Spotlights, Times of Entrepreneurship scouted the most successful startups that spun out...

Subscribe to Times of E’s Free Weekly Newsletter

Learn about the emerging ecosystem of diverse founders

Popular

  • Trailblazer: An Audacious Denver Entrepreneur Recruited An Xbox Creator To Develop Her Gaming Vision

    Trailblazer: An Audacious Denver Entrepreneur Recruited An Xbox Creator To Develop Her Gaming Vision

    0 shares
    Share 0 Tweet 0
  • Modern Mexican Food Brands Give Old El Paso The Boot

    0 shares
    Share 0 Tweet 0
  • Top 20 U.S. University Entrepreneurship Competitions

    0 shares
    Share 0 Tweet 0
  • Venture Capital Returns Are More Skewed Than People Realize

    0 shares
    Share 0 Tweet 0
  • With A New Way to Make Furniture, Locally, Baru Has Nearly $1M In Revenue After Two Years

    0 shares
    Share 0 Tweet 0

Recent

Venture Spotlight: Realist Ventures In Connecticut Focuses on Biotech, Healthcare

January 26, 2023
Modern Mexican Food Brands Give Old El Paso The Boot

Modern Mexican Food Brands Give Old El Paso The Boot

January 25, 2023
Editor’s Note: We Are All Jacinda Now

Editor’s Note: Burnout World; Dark Web’s Criminal Minds; Small Biz Gets Stuck w George Santos

January 23, 2023

Recommended

  • Health
  • Climate
  • Deep Tech
  • Finance
  • Education
  • Women Entrepreneurs
  • Mentorship
Circus Kaput

Coronavirus Brought About A Historic Shift: Microbusinesses Counted

3 years ago
three men standing in a row in front of a Village Global sign

THE HUB: Top Black And Brown VCs; A Hyperspectral Technology Backed by Reid Hoffman; And What Happens When All The Small Business Owners Retire?

2 years ago
  • About
  • Partner
  • Bespoke Research
  • Listening Tours​
  • Contact
  • Support Us
  • Privacy Policy

(703-966-7357)

© 2020 Mondial Publishing Inc. All Rights Reserved.

 
Facebook Twitter Linkedin
No Result
View All Result
  • Research
  • Finance
  • Women Entrepreneurs
  • New Builders
  • Ecosystem
  • Events
  • Newsletter
  • Editor’s Note

© 2022 Mondial Publishing Inc. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Support Times of E

Times of E covers the emerging ecosystem of diverse founders.

With your support of our journalism, you will receive our weekly newsletter and one of these resources for free: 

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?