Via Bizwomen (March 15, 2021) - Recovering from the pandemic’s setbacks is taking women-owned businesses three times longer, on average, than businesses owned by men, according to a recent study by Freshbooks.
The study is yet another that sheds light on how women business owners have struggled to regain their footing following the immediate shock of pandemic lockdowns, with many also managing care for family members, their children’s remote learning and household tasks.
Via CBS News (February 23, 2021) — As the coronavirus continues to batter U.S. small businesses, new data from tax-prep service H&R Block suggests Black-owned firms are taking the biggest hit.
H&R Block's survey is the latest in a catalog of research detailing how Black-owned businesses have struggled in the past year.
A Main Street Alliance/Color of Change poll released in October found that only 40% of Black business owners expected to remain open over the ensuing six months, compared with 46% of Asian respondents, 48% of Latinx owners and 55% of Whites.
The Federal Reserve Bank of New York found that small business ownership in the U.S. dropped 22% between February 2020 and April 2020, but Black ownership dropped 41% — the greatest decline among all racial groups during the depths of the pandemic.
Thousands of Black businesses have already closed for good. Part of the struggle for Black businesses stems from their difficulty securing bank loans during the first wave of the pandemic, while many report being left out of the Paycheck Protection Program, a federal lending initiative geared to smaller employers.
Via CNBC (February 18, 2021) — When the pandemic first slammed the country last March, Iya Karade was one of countless small-business owners who had to shut their doors.
Her Orange, New Jersey-based gymnastics studio, Athletic Arts Academy, didn’t reopen until July — and then, it was only at 25% capacity.
“The word pivot became synonymous with survival,” said Karade, 54, who started her business in 2014 in the hopes of bringing gymnastics to kids in her urban area.
That meant conducting virtual classes and, once she did reopen, adding skateboarding and roller skating to her offerings.
She is still at 25% capacity since many families are staying home, may be afraid to come or live in multi-generational households — which means they have to be careful of putting older relatives in harm’s way.
Whether she can survive another year under these conditions depends on many variables, such as the flexibility of her landlord.
“It depends on me getting more funding,” Karade said.
Almost a year into the pandemic, many businesses, especially Black-owned ones, are trying to stay afloat.
About one-third, or 37%, of Black small-business owners said they can survive more than a year under current conditions, versus 59% of White small-business owners and 55% of Hispanic small-business owners, according to the latest quarterly CNBC | SurveyMonkey Small Business Survey.
Additionally, 15% said their business has been temporarily shuttered due to the pandemic and has not reopened yet. In comparison, 8% of White small-business owners reported the same. The survey was conducted Jan. 25-31 using the SurveyMonkey platform and included responses from just over 2,100 small-business owners across the country.
Via CBS News (February 10, 2021) — Three out of every 10 small businesses in the U.S. say they likely won't survive 2021 without additional government assistance during the coronavirus pandemic, a survey from the Federal Reserve Bank shows.
Considering there are roughly 30 million small businesses in the U.S., that means 9 million small firms are at risk of closing for good this year.
The outlook is even worse for minority-owned businesses: 8 in 10 said their company is in poor financial condition, according to the Fed survey, even after receiving limited help from Paycheck Protection Program loans and other small business relief efforts during the pandemic.
Via Associated Press (February 22, 2021) — President Joe Biden announced changes Monday to target more federal pandemic assistance to the nation’s smallest businesses and ventures owned by women and people of color.
Biden says a lot of these mom and pop businesses “got muscled out of the way” by larger businesses seeking federal money in the early days of the pandemic. He said changes taking effect Wednesday will provide long overdue aid to these smaller enterprises that he says are being “crushed” by the pandemic-driven economic downturn.
“America’s small businesses are hurting, hurting badly and they need help now,” Biden said.
SEATTLE, WA (October 15, 2018) - Green Business Advocate Stephanie Gowing created an ecosystem map of Seattle displaying all green energy businesses in the region and how they connect to each other, to encourage further entrepreneurship and collaboration in the clean energy sector.
NEW YORK, NY (October 12, 2018) - A decade after the market crash of 2008, the world of small business loans is thriving. Approval rates are rising at community banks: 49.8% of funding requests were granted in 2018.
Image courtesy of the Center for American Entrepreneurship
WASHINGTON, DC (October 11, 2018) - American businesses’ share of global venture capital funding has declined from 95% in the 1990s to 50% today, and is continuing to diminish quickly.
China’s share is growing fastest, reaching nearly 25% of the global total in 2018. Thailand has also become a leader, seeing nearly 600% growth.
While Asia’s growth is skyrocketing, the US continues to thrive and break records. American companies received more venture capital investments in the first six months of 2018 as they did in the past ten years total, according to PitchBook.
BATON ROUGE, LA (October 10, 2018) - Approximately 500 small businesses in Louisiana receive $328 million in small business loans from the Small Business Administration (SBA) in 2018, according to a recent SBA report. The report determined that this was an increase of 69% in dollars and 29% in loans since 2017.
“As I say at every opportunity, I am grateful to all our lending partners who value and use SBA guarantees to extend much-needed growth capital to Louisiana small businesses,” said SBA District Director Michael Ricks. “Our increase in lending this year is in large part due to our lending partners’ dedication to lending to the small business community.”
ATLANTA, GA (October 9, 2018) - Local banks hold 42% of all small business loans in the United States, a new study by the Federal Deposit Insurance Corporation (FDIC) found.
“Small businesses comprise almost half of private-sector employment in the United States, and banks are the most common source of external credit for these businesses. Despite holding only 13% of banking industry assets, our data shows that community banks hold 42% of small business loans,” FDIC Chairman Jelena McWilliams said. “In light of ongoing consolidation in the banking industry, banks’ ability to meet the credit needs of this important sector is of vital interest to the FDIC.”
OAKLAND, CA (October 8, 2018) - Oakland will establish the first city-owned public bank in the United States, with ownership shared by Oakland, Richmond, Berkeley and Alameda County. Local residents’ distaste for corruption on Wall Street inspired this initiative, to avoid spending millions on debt servicing and transaction fees at big banks and reinvest money into the community.
The Bank of North Dakota is the only other public bank in the US and has proved to be a success thus far, earning $136 million for the state last year in its thirteenth consecutive year of profits. $30 to 50 million of these profits fund education, infrastructure projects and disaster relief programs each year.
LAS VEGAS, NV (October 5, 2018) - Nevada has seen the most growth of all states in women-owned businesses in the last ten years, alongside Las Vegas ranked eighth of all American cities, according to a new report by American Express.
“We have a diverse community that means different markets to cater to. Part of the reason why we have a lot of women entrepreneurs here is because they see a blend of necessity and opportunity,” said reporter Nina Porciuncula.
COLUMBUS, OH (October 4, 2018) - Recent studies indicate that increasing numbers of Ohioans are choosing to bank with credit unions; Ohio credit unions served 2.83 million people and provided $177,273,023 in financial benefits in the past year.
“Every month we track our growth,” Painesville Credit Union CEO Lori Guzzi said. “In the last 12 months, we have grown 250 members. So, we’ve had a steady increase every month in the last year for membership growth. I think part of it is the word is getting out about credit unions.”
“We know our members,” Guzzi added. “We’ve been here for 76 years, so we have had families that have four generations banking with us... I just think that attests to the stability here.”
CHICAGO, IL (October 3, 2018) - Chicago has proven to be fertile ground for business as growing numbers of tech companies, including Amazon, have recently put down roots in the Windy City.
Chicago mayor Rahm Emanuel launched the ChicagoNEXT program in 2013 to promote the city’s appeal for the tech world, by building relationships and community as well as improving the city’s IT infrastructure and STEM education. In July, the state of Illinois established the Department of Innovation and Technology for similar purposes on a state-wide scale.
"Unlike Silicon Valley, Chicago's startups and other tech companies have been developing new business models from scratch and getting them to thrive on their own without necessarily having them acquired by someone else," said Todd Thibodeaux, CEO of the tech trade association CompTIA.
"It's the Chicago DNA," Andy Cohen, COO of Snapsheet said. "The people here aren't afraid to get their hands dirty and get companies going.”
Image courtesy of The Opportunity Atlas via NPR
CAMBRIDGE, MA (October 2, 2018) - A new interactive map designed by Harvard University economists and based on Census data exhibits the economic mobility patterns and challenges of neighborhoods across the United States.
The accompanying report determined that family stability, social networks, early childhood development, and college and career readiness were essential elements spurring upward mobility. Segregation was identified as a major obstacle.
“You see that for kids turning 30 today, who were born in the mid-1980s, only 50 percent of them go on to earn more than their parents did,” Harvard economist Raj Chetty says. “It’s a coin flip as to whether you are now going to achieve the American dream.”
BOSTON, MA (October 1, 2018) - Fewer than 10% of venture capital-backed startups had a female co-founder, and fewer than 1% had an African-American female cofounder in 2017, according to a recent report by Pitchbook. The study also determined that 75% of all venture capital went to companies in California, Massachusetts and New York.
Increasing access to venture capital is imperative in 2018, to empower and maximize the potential and impact of entrepreneurs of all genders and races throughout the United States.
Despite the lack of venture capital funding, companies with a woman on the founding team outperformed all-male companies by 63% in a ten-year study by First Round Capital. Racially diverse companies outperformed industry norms by 35%, according to a McKinsey study.
WINSTON-SALEM, NC (September 28, 2018) - Small business owners in North Carolina affected by Hurricane Florence face an uncertain path to recovery.
The Small Business Administration offers disaster loans specifically for victims of Hurricane Florence.
"I'm doing some research now about (Federal Emergency Management Agency) grants, disaster loans, and claiming flood insurance so I'll be prepared to advise clients in the aftermath," said financial planner Matt Stevens.
STANFORD, CA (September 27, 2018) - Stanford University topped the list of universities with the most venture capital-backed startups in 2018, according to a new report by PitchBook. The University of California - Berkeley, Massachusetts Institute of Technology and Harvard University followed in this category.
Stanford’s 1.178 entrepreneurs raised $28.8 billion in funding over the last ten years.
PROVIDENCE, RI (September 26, 2018) - The state of Rhode Island invested in numerous small business development and funding programs and is enjoying a subsequent boom in small businesses and startups.
The state government recently launched a small business funding program providing capital to 125 new businesses, as well as initiatives to help new and existing businesses on product development, research and recruiting new talent.
“Providence seemed like a place where people could really follow their passions and open the store of their dreams,” said Emma Ramadan, owner of Riffraff Bookstore and Bar. “Every person we turned to for help or assistance, whether in government or the small business association or our lender, helped us so much along the way.”
WASHINGTON, DC (September 25, 2018) - Latino small businesses earned $700 billion last year and grew 31.6% since 2012 - more than double the average growth rate of small businesses in that period - according to a new study by the US Hispanic Chamber of Commerce.
"Providing access to better and faster financing options will allow Latino-owned businesses to build upon this momentum," Manuel Chinea of Popular Bank said.
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