Owners of a third of small and medium-size businesses closed by the mandated economic shutdown do not expect to reopen, largely because they will not have the money to pay rent and other bills, a Facebook survey has found.
Of those who do plan to reopen, 55 percent say they will not rehire their former employees. The survey did not specify if this means that the businesses will not hire the same number of workers or will look for different people to fill the available jobs.
The survey also found that 52 percent of one-person businesses are not now operating, with 55 percent of them owned by women. Among one-person business owners, 40 percent reported difficulty in paying their household expenses.
Of businesses that are still operating, fewer than 25 percent reported income that was greater than cash outflow.
The greatest needs cited by small and medium-size businesses were working capital (28 percent) and customers (20 percent).
Even so, 47 percent of survey respondents said they were afraid to borrow money because they were uncertain they could repay it.
When asked what government programs or policies would help them most, 36 percent named access to credit with guarantees of repayment if they themselves were unable to pay and 34 percent want salary subsidies for workers.
Facebook surveyed 86,000 owners of small and medium-size business owners, managers, and employees as part of a continuing data-gathering partnership with the World Bank and Organization for Economic Cooperation and Development.
