The Minneapolis Fed conducted a business survey in partnership with community organizations to gauge the impact of the COVID crisis. 768 participated in the survey out of which 44 percent were minority businesses and 71 percent women owned businesses.
The data shows that minority businesses have been hit the hardest in reflected in expected sales, cuts in employment and the ability to survive beyond six months.
62 percent of minority businesses expected April sales to be more than 50 percent less in April compared to January-February of 2020
The graph below shows 58 percent of minority businesses had staffing cuts which was higher than veteran and women owned businesses. Around 3 percent of minority and women owned businesses indicated staffing increases.
55.6 percent minority businesses surveyed indicated that they would not survive six months if existing conditions continue
Earlier posts on this blog documented the challenges minority businesses had in accessing SBA PPP and EIDL programs. So it may not be a stretch to say that most minority businesses are in a very precarious situation. Troubling because previous round of the Survey of Business Owners showed minority businesses growing faster in number than other firms in Minnesota.
Minnesota policy makers – please note – an important engine for economic growth, especially in low income neighborhoods is in peril. (An earlier post on this blog offered some policy suggestions).
Bruce P. Corrie, Phd, Professor of Economics, Concordia University