Half a million companies globally shut shop during Covid19

Half a million companies globally shut shop during Covid19

The COVID-19-related mass layoffs and office closures have impacted nearly every industry and sector. As a result, hundreds of thousands of businesses worldwide were thrown off track, and many of them were unable to cope with the pandemic's challenges.

According to Buy Shares data, there were 213.6 million businesses operating globally last year, 560,000 fewer than in 2019.

The First Decade-Long Decline

Following the COVID-19 attack, businesses were forced to act quickly and decisively. For the majority of them, this meant altering their operations, service delivery, and client communication. While some businesses, particularly those in the eCommerce and technology sectors, discovered new opportunities in the COVID-19 environment, many others did not.

According to Statista, Eurostat, and the World Bank, the number of businesses had been increasing for two decades prior to the pandemic. In 2000, there were over 122 million businesses operating on a global scale. By the end of 2010, this figure had risen to nearly 160 million and had been steadily increasing since. It reached 185 million six years later.

According to statistics, 2017 and 2018 saw the fastest annual growth, with the total number of businesses operating worldwide increasing by 20 million to 205 million. In 2019, another 9 million businesses began operations, bringing the total to over 214 million.

However, the COVID-19 changed that and resulted in the first decline in two decades, as the global business population fell to 213.6 million.

The Number of Asian Businesses Has Increased by 700,000 in a Year, with the US Market Suffering the Most

According to statistics, companies in the Asia Pacific region were significantly less impacted by the COVID-19 than their European or American counterparts. Indeed, despite the pandemic, the total number of businesses in this region increased by 700,000 in a year.

Last year, the EMEA region had 57.2 million active businesses, down slightly from 57.6 million in 2019.

The overwhelming majority of businesses forced to close their doors as a result of the pandemic were located in North and South America. Following the COVID-19 attack, the region's total enterprise population fell by 900,000 to 24.1 million.

According to the survey, small and medium-sized businesses (SMEs) were significantly worse off than large firms during the COVID-19 crisis. By 2020, the total number of SMEs will have decreased by more than 500,000 to 212.9 million. Simultaneously, the number of large enterprises with 250 or more employees decreased to around 667,000, down from 685,000 a year ago.