62% of small businesses and self-employed people trust to continue their activities despite everything
GoDaddy, a company that empowers entrepreneurs on a daily basis, has released the results of its Global Entrepreneurship Survey, which analyzes the impact of the COVID-19 pandemic on the world’s smallest businesses. This study, carried out in Germany, Australia, Canada, Spain, the United States, the Philippines, India, Mexico, the United Kingdom and Turkey, shows that this crisis is hitting companies hard, since 75% of respondents reported suffering from a decrease in their income. However, the data shows a strong determination on the part of these companies not only to survive the economic crisis resulting from COVID-19, but also to thrive.
GoDaddy’s Global Entrepreneurship Survey looked at the effects of the pandemic on all small businesses around the world. Of the 5,265 companies surveyed, over 90% have ten or fewer employees, and half of these are self-employed.
Globally, 2 in 5 companies have had to close at least temporarily, either for security reasons or because they did not have the resources to stay open. But amid these economic challenges, a clear message has been glimpsed: All these small businesses and independents are determined to survive. In fact, survey results show that 7 in 10 entrepreneurs believe they can recover in the maximum period of one year, and 63% indicate that they anticipate growth of at least 25% in the three to five coming years, a figure very similar to pre-crisis expectations. All of this may be due to the fact that many of them are adjusting to the new situation using technology as their best ally and moreover launching new initiatives and parallel businesses.
“Despite the difficulty of the past six months, it is inspiring to see that small entrepreneurs around the world are determined to work to regain the success of their businesses,” said Gianluca Stamerra, GoDaddy Regional Director for Spain, Italy. and France. “At the heart of entrepreneurship is the ability to adapt and move forward. Our survey shows that owners of the smallest businesses in Spain and around the world show persistence and resilience when planning for the present and the future, ”concludes Stamerra.
The millennial generation is the most daring to undertake
The GoDaddy survey reflects the demographic change taking place in the world of entrepreneurship, for the first time in 5 years the millennial generation occupies a majority position within the groups of respondents by the company (32% belong to at GenX and 18% of participants are from the baby boom generation). In this sense, further, it should be noted that Millennials have a closer relationship with technology than the rest of the demographic groups. Data from the GoDaddy survey shows this generation is twice as likely to market products and services through social media platforms as baby boomers.
Spain: small and medium-sized enterprises do not lose their optimism
Spain has been one of the countries most affected by the pandemic. However, the small Spanish entrepreneurs surveyed do not lose their optimism, since 46% expect to recover within 6 months to a year, and even 20% of respondents rely on doing so within 3 months. . Likewise, the results show that the spirit of improvement of these small businesses is indefatigable, since almost half (48%) of Spanish small businesses and self-employed people are convinced that their business will grow, by at least 25% within 3 years. 5 years.
The results of the global survey describe a difficult and unpredictable economic environment for small businesses. However, despite the crisis, the majority remain firm. In the case of Spain, only 3% of respondents indicate that it is no longer possible to maintain their activity (compared to 6% in the world), and more than half (62%) say that despite the The negative impact COVID-19 has had in their business, they are confident they will be able to move forward (compared to 52% globally).
Also, one of the final factors was having a website which affected both the outlook and the expectations of all these small businesses going forward. Those who had an online version, compared to those who did not, were less likely to go bankrupt, even temporarily (41% to 36%). Additionally, those with a website are more optimistic about their expectations for future growth, with 31% aiming for projected growth of at least 50%, compared to just 23% for those without a website.
Teleworking has reached 38% of Spanish small businesses
Despite all the difficulties that this crisis has posed for the majority of small businesses and Spanish self-employed people, the majority are adapting, with 38% claiming to have adopted telework as a way forward. In addition, 95% of those questioned were able to resume their activity before reaching the “new normal”, while 28% did so during phase 0 in Spain. In addition, most of these small Spanish entrepreneurs have started betting on new technological tools to stay in touch with their customers, with WhatsApp being the most used option (60%), followed by social networks (46%) and third place email marketing (31%).
“As history has shown us, and this survey reinforces it, the recession resulting from COVID-19 is likely to lead to a new wave of entrepreneurs who overcome hardships and create new small businesses, come out of hardship and take risks. to create new small businesses. It is this spirit of rebirth and innovation that can help bring global and local economies back to recovery, ”adds Stamerra.
GoDaddy’s Global Entrepreneurship Survey was conducted in collaboration with Savanta, a leading global data, research and consulting company. The survey was conducted from June 1 to June 29, 2020. For more information, visit the link below.