Cuomo's NY leading the country in small-business closures, according to Facebook's data

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

NY tax hike will result in ‘significant exodus’ out of city: Peebles Corporation CEO

Peebles Corporation founder, chairman and CEO Don Peebles on celebrities endorsing a business wellness seal and NY lawmakers raising the state’s taxes. New York GOP co-chair of public affairs and policy John Burnett on Georgia’s voting law fallout.

Just three days after New York Gov. Andrew Cuomo unveiled a plan to hike taxes on big business in the Empire State, comes disturbing statistics about small business in New York.

According to new data from Facebook, New York tied with Pennsylvania for having the most small business closures in the country during the coronavirus pandemic, 

MLB ALL-STAR GAME BOYCOTT 'CRUSHING' FOR ATLANTA SMALL BUSINESSES

The social media giant's first-ever Global State of Small Business Report, which surveyed over 35,000 small businesses impacted by COVID-19 across 27 countries, finds that the Empire State and Keystone State had the highest reported small business closure rates in the U.S. at 31% each, followed closely behind by Massachusetts with a reported closure rate of 30%.

Small businesses in smaller states fared better. Maine and Idaho reported the lowest closure rates of 9% each. Colorado, which ranks 22nd in population, was next lowest with a closure rate of 10%. 

Overall, 22% of U.S. small businesses reported they were closed in February 2021, a 14% increase compared to October 2020. Globally, 24% of small businesses reported they were closed during the same period, a 16% increase. Approximately 51% of U.S. small businesses and 55% of global small businesses reported year-over-year sales declines in January. 

Black-owned small businesses were more likely to report closures and lower sales (38%) compared to other small businesses (18%). Over half (54%) of small businesses led by women reported a fall in sales, compared to 47% of small businesses led by men. The gap between men and women-led small businesses was highest in Tennessee (23%), Ohio (16%), Illinois (14%), and Missouri (14%).

RESTAURANTS STRUGGLE TO FIND EMPLOYEES DESPITE DECLINING COVID-19 CASES

About 27% of U.S. small businesses and 30% of global small businesses have reduced their workforces due to the pandemic.

Approximately 32% of minority-led small businesses (Black, Hispanic, Asian-American, and other races) reported reduced employment since the start of the pandemic compared to 25% of other small businesses. 

The states where small businesses reduced employment the most include New York (38%), Illinois (36%), Michigan (36%), California (33%), and Florida (32%).

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Hospitality was the leading sector for closures, sales declines and workforce reductions. The sector reported a 53% workforce reduction in the United States and a 50% reduction globally.

The sector that was second in being hardest hit was manufacturing and utilities, which reported a 37% reduction both in the U.S. and globally. Next, construction, which reported a 32% global reduction and 31% reduction in the U.S followed by wholesale and retail, which reported a 32% global reduction and a 30% reduction domestically.

Sectors that saw the biggest gaps between employment reductions globally and in the U.S. include information and communications technology, which reported a 31% reduction globally versus a 21% reduction in the U.S., agriculture, which reported a 29% global reduction versus a 20% reduction in the U.S., and logistics, which reported a 28% global reduction versus a 19% reduction domestically.

Among the global and U.S. small businesses surveyed, 51% of participants said they have no plans to rehire in the next six months. 

CLICK HERE TO READ MORE ON FOX BUSINESS

Roughly 60% of global businesses have adapted during the pandemic, with 33% of respondents updating processes for customer interaction, 26% utilizing digital tools, 22% changing their advertising strategy, 17% implementing remote work policies, 13% changing product selection and 9% changing their approach to hiring. 

TickerSecurityLastChangeChange %
FBFACEBOOK, INC.313.09+6.83+2.23%

Black (35%) and Asian-led (34%) small businesses were more likely to report having to change their advertising strategy as a result of COVID-19 compared to 20% of other small businesses. 

"While the roll-out of vaccines and the easing of lockdowns in many countries are reasons to be hopeful, our latest Global State of Small Business Report is a timely reminder that many are still vulnerable and in need of support," Facebook Chief Operating Officer Sheryl Sandberg said in a statement. "And those feeling the impact of the pandemic the most are female and minority-owned businesses – a further reminder that whenever crises hit, it’s the most vulnerable who are always hit the hardest."

Source: Read Full Article