The COVID-19 outbreak triggered the most severe recession in decades
The economic shock has hit as hard as lockdown measures were stringent
The sectors most affected by lockdowns account for 40% of total employment
SMEs account for the bulk of employment in the most affected sectors
Impacts in some regions were particularly severe
Business creations in 2020 and 2021 vs. 2019
Bankruptcies in 2020 and 2021 vs. 2019
The smaller the SMEs, the more likely they were to close operations
The higher the exposure to lockdown measures, the higher the probability of closure
SME sales were hard-hit over 2020
The higher the exposure to lockdown measures, the higher the probability of reduced sales
SMEs selling online fared better
SMEs in the sectors most affected by lockdown measures were more likely to receive government support
SMEs facing (large) reductions in sales were more likely to receive government support
Younger and smaller SMEs were less likely to receive government support
Younger firms were less likely to receive government support
Smaller firms were less likely to receive government support in the form of credit and deferral of payments
SMEs that experienced a large drop in sales are more likely to need future help to cover costs
Proportion of SMEs with a Facebook page receiving financial or non-financial government support since the start of the COVID-19 pandemic
In countries with larger fiscal expenditures, a higher share of SMEs are supported
Across countries, the proportion of SMEs receiving government support is not related to the size of the economic shock
Countries with more stringent containment measures had a higher share of SMEs in need that were left unsupported
In countries with more stringent containment measures, a higher proportion of SMEs ask for additional support in the future
Governments have provided large support packages in response to COVID-19
SMEs have combined different forms of financial support, debt or not debt-based, but with a large preference for non-repayable measures
GVCs had already lost momentum prior to COVID-19
Global trade and activity are slowly recovering
International investments by multinationals have plummeted
Top ten most central hubs in GVCs
Large variations in the length of GVCs across sectors
Not all countries have the same assets and capacity to reverse old industrial patterns
FigureĀ 3.7. A world without foreign affiliates: How much would countries lose?
Firm creation has restarted, bankruptcies have retroceded, with some countries at stall
SMEs lag in digital adoption, in all technology areas
Gaps in connectivity have increased and progress has stalled for small firms
The crisis sped up SME digital uptake, especially among medium-sized firms, and changes are poised to last
Where containment measures were more stringent, more SMEs went digital
The crisis may have enlarged cross-sector divides but reduced cross-country divides in SME digitalisation
Levels of telework have skyrocketed
Stock market returns surged for firms with a strong digital presence
COVID-19 impact on business dynamics and policy responses in Australia
Factors of SME&E structural vulnerability in Australia
FigureĀ 6.3. Sources of SME&E resilience in Australia
COVID-19 impact on business dynamics and policy responses in Austria
Factors of SME&E structural vulnerability in Austria
Sources of SME&E resilience in Austria
COVID-19 impact on business dynamics and policy responses in Belgium
Factors of SME&E structural vulnerability in Belgium
Sources of SME&E resilience in Belgium
COVID-19 impact on business dynamics and policy responses in Canada
Factors of SME&E structural vulnerability in Canada
Sources of SME&E resilience in Canada
COVID-19 impact on business dynamics and policy responses in Chile
Factors of SME&E structural vulnerability in Chile
Sources of SME&E resilience in Chile
COVID-19 impact on business dynamics and policy responses in Colombia
Factors of SME&E structural vulnerability in Colombia
Sources of SME&E resilience in Colombia
COVID-19 impact on business dynamics and policy responses in Costa Rica
Factors of SME&E structural vulnerability in Costa Rica
Sources of SME&E resilience in Costa Rica
COVID-19 impact on business dynamics and policy responses in Czech Republic
Factors of SME&E structural vulnerability in Czech Republic
Sources of SME&E resilience in Czech Republic
COVID-19 impact on business dynamics and policy responses in Denmark
Factors of SME&E structural vulnerability in Denmark
Sources of SME&E resilience in Denmark
COVID-19 impact on business dynamics and policy responses in Estonia
Factors of SME&E structural vulnerability in Estonia
Sources of SME&E resilience in Estonia
COVID-19 impact on business dynamics and policy responses in Finland
Factors of SME&E structural vulnerability in Finland
Sources of SME&E resilience in Finland
COVID-19 impact on business dynamics and policy responses in France
Factors of SME&E structural vulnerability in France
Sources of SME&E resilience in France
COVID-19 impact on business dynamics and policy responses in Germany
Factors of SME&E structural vulnerability in Germany
Sources of SME&E resilience in Germany
COVID-19 impact on business dynamics and policy responses in Greece
Factors of SME&E structural vulnerability in Greece
Sources of SME&E resilience in Greece
COVID-19 impact on business dynamics and policy responses in Hungary
Factors of SME&E structural vulnerability in Hungary
Sources of SME&E resilience in Hungary
COVID-19 impact on business dynamics and policy responses in Iceland
Factors of SME&E structural vulnerability in Iceland
Sources of SME&E resilience in Iceland
COVID-19 impact on business dynamics and policy responses in Ireland
Factors of SME&E structural vulnerability in Ireland
Sources of SME&E resilience in Ireland
COVID-19 impact on business dynamics and policy responses in Israel
Factors of SME&E structural vulnerability in Israel
Sources of SME&E resilience in Israel
COVID-19 impact on business dynamics and policy responses in Italy
Factors of SME&E structural vulnerability in Italy
Sources of SME&E resilience in Italy
COVID-19 impact on business dynamics and policy responses in Japan
Factors of SME&E structural vulnerability in Japan
Sources of SME&E resilience in Japan
COVID-19 impact on business dynamics and policy responses in Korea
Factors of SME&E structural vulnerability in Korea
Sources of SME&E resilience in Korea
COVID-19 impact on business dynamics and policy responses in Latvia
Factors of SME&E structural vulnerability in Latvia
Sources of SME&E resilience in Latvia
COVID-19 impact on business dynamics and policy responses in Lithuania
Factors of SME&E structural vulnerability in Lithuania
Sources of SME&E resilience in Lithuania
COVID-19 impact on business dynamics and policy responses in Luxembourg
Factors of SME&E structural vulnerability in Luxembourg
Sources of SME&E resilience in Luxembourg
COVID-19 impact on business dynamics and policy responses in Mexico
Factors of SME&E structural vulnerability in Mexico
Sources of SME&E resilience in Mexico
COVID-19 impact on business dynamics and policy responses in the Netherlands
Factors of SME&E structural vulnerability in the Netherlands
Sources of SME&E resilience in the Netherlands
COVID-19 impact on business dynamics and policy responses in New Zealand
Factors of SME&E structural vulnerability in New Zealand
Sources of SME&E resilience in New Zealand
COVID-19 impact on business dynamics and policy responses in Norway
Factors of SME&E structural vulnerability in Norway
Sources of SME&E resilience in Norway
COVID-19 impact on business dynamics and policy responses in Poland
Factors of SME&E structural vulnerability in Poland
Sources of SME&E resilience in Poland
COVID-19 impact on business dynamics and policy responses in Portugal
Factors of SME&E structural vulnerability in Portugal
Sources of SME&E resilience in Portugal
COVID-19 impact on business dynamics and policy responses in the Slovak Republic
Factors of SME&E structural vulnerability in the Slovak Republic
Sources of SME&E resilience in the Slovak Republic
COVID-19 impact on business dynamics and policy responses in Slovenia
Factors of SME&E structural vulnerability in Slovenia
Sources of SME&E resilience in Slovenia
COVID-19 impact on business dynamics and policy responses in Spain
Factors of SME&E structural vulnerability in Spain
Sources of SME&E resilience in Spain
COVID-19 impact on business dynamics and policy responses in Sweden
Factors of SME&E structural vulnerability in Sweden
Sources of SME&E resilience in Sweden
COVID-19 impact on business dynamics and policy responses in Switzerland
Factors of SME&E structural vulnerability in Switzerland
Sources of SME&E resilience in Switzerland
COVID-19 impact on business dynamics and policy responses in Turkey
Factors of SME&E structural vulnerability in Turkey
Sources of SME&E resilience in Turkey
COVID-19 impact on business dynamics and policy responses in the United Kingdom
Factors of SME&E structural vulnerability in the United Kingdom
Sources of SME&E resilience in the United Kingdom
COVID-19 impact on business dynamics and policy responses in the United States
Factors of SME&E structural vulnerability in the United States
Sources of SME&E resilience in the United States