The coronavirus pandemic has greatly impacted people everywhere. A new survey reveals it was especially tough for communities of color and minority-owned small businesses.
But as News Channel 3’s Caitlin Thropay reports some businesses are actually beating the odds because of the types of businesses they own.
Lawson Bagby is the owner of “A Class Movers” who said contrary to the survey, his business picked up during the pandemic.
“To be honest, I don’t feel we were too impacted,” Bagby said. “In the very beginning, when everyone was still adjusting I’d say we were a little impacted not drastically but we were definitely prepared,” he said. “If anything people started to move more so it actually picked up,” he added.
Hortencia Diaz is a licensed family therapist who owns her own business called Toltec Family Therapy.
“I was not impacted,” Diaz said. “It didn’t have a negative impact. I think it was quite the opposite for myself but I am mental health which would explain why my business thrived,” she said.
However, among the nearly 10-thousand small businesses surveyed, 93% of asian-owned firms and 86% of black-owned firms reported a decline in sales as a result of the pandemic.
The survey also said these businesses had a harder time accessing capital and getting extra funding.
“Although there were resources there were a lot of challenges getting those resources perhaps not knowing what was out there and how to access what was out there,” she said.
Among the small businesses surveyed, white-owned firms were twice as likely to get fully approved for financing as black-owned and latino-owned firms.
“I feel like the community kind of comes together to support each other a little bit more so I have a lot of other people refer me in exchange I refer them and they’re fellow people of color and they have their own businesses as far as maintenance, painting, roofing, flooring so we try to work together to keep each other going,” Bagby said.
For more details on the full survey visit: https://www.fedsmallbusiness.org/survey/2021/2021-report-on-firms-owned-by-people-of-color