This archive report was first published on 6 August 2020.
Released in August 2020, the Global State of Small Business Report highlights the devastating impact of the COVID-19 pandemic on small and medium-sized businesses (SMBs) in Kenya.
Conducted between January and May 2020, the report sampled 30,000 small business leaders in over 50 countries, including Kenya. The findings reveal that only 62% of SMBs on Facebook in Kenya remain operational or are engaging in revenue-generating activities.
Of the sampled businesses, 65% have had to reduce their workforce in Kenya as a result of the pandemic, with 75% of local businesses registering lower sales this year compared to last year. Approximately 47% of the sampled businesses expect to experience cash flow challenges in the next few months.
Despite the challenges, digital sales have become increasingly important for SMBs, with 46% of Kenyan SMBs surveyed reporting that they make 25% or more of their sales digitally in May 2020.
A majority of the sampled local SMBs, 65%, reported being optimistic for the future, indicating that there is hope for recovery.
However, the report also highlights that globally, more than a quarter of SMBs closed between January and May 2020, with the figure rising to over 50% in some countries. A third of SMBs currently operating reported that they had reduced their workforces, a worrying sign of what could be a lengthy job crisis.
