HOUSTON, August 3, 2020 / PRNewswire / – To mark the start of Black Business Month, Hello alice has released “The Impact of COVID-19 on Black Entrepreneurs“Data report revealing the unique challenges America’s black small business owners are facing as a result of the COVID-19 pandemic. Working with Black and Brown Founders, digitalundivided, and DivInc, the report challenges corporate companies, policy makers, and thought leaders to rethink what.” Color communities need more data to begin with. According to a study by the Global Strategy Group, just over one in five black small business owners said they are temporarily closing operations due to the pandemic. Analysis of Hi Alice’s report shows that economic damage is happening is only just beginning and will get worse, in particular and disproportionately harming companies in black ownership.
To better understand the current needs of black business owners and identify opportunities for support, Hello Alice has collected and compiled demographic information, funding requirements, and operational challenges from more than 28,985 black business owners who have applied for COVID-19 Business for All Emergency Grants. The resulting data report highlights:
- 69% of black applicants for COVID-19 Business for All Emergency Grants identify as women (and in percentage terms, black women are the fastest growing group of entrepreneurs in The United States).
- The overwhelming majority of black business owners – nearly three in four – said they needed immediate emergency funding to survive the COVID-19 pandemic.
- 92% of black applicants are calling on the government to step up and give them access to more emergency aid provided by $ 10–$ 25,000. For 37% of black-owned companies that applied for funding, that amount of funding would mean the company’s survival after COVID-19.
- 68% of black applicants said losing revenue during this time of social distancing was their biggest hurdle.
- When the owners answered these questions, they didn’t expect COVID-19 to affect their businesses for more than four months. Additionally, the Payment Protection Program (PPP) was designed to only help owners for two and a half months.
- 36% of black business owners said raising capital and finding credit were their greatest challenges.
“There’s no question that the COVID-19 pandemic and economic slump have devastated America’s black-owned small businesses,” said Darnell Bowen, Hello Alice’s Controller & Grants Program Director. “By collecting the data and sharing this report, Hello Alice hopes to mobilize community members and lawmakers to continue to support and better serve the black small business community.”
Since its inception, Hello Alice has been committed to promoting equal access for black business owners who make up 24% of the total platform community. To assist black owners with the unprecedented and unique challenges posed by COVID-19, Hello Alice offered owners the opportunity to apply $ 10,000 COVID-19 business for all emergency grants. Additionally, Hello Alice has partnered with the eBay Foundation, the Global Entrepreneurship Network (GEN), the Mastercard Center for Inclusive Growth, PepsiCo, Salesforce Essentials, Silicon Valley Bank, the US Chamber of Commerce Foundation, UBS and Verizon to bring the Black-owned business resource center as an extension of the COVID-19 Business Resource Center. Through the centers, business owners can connect with colleagues and experts to get the real-time help they need, including extensive financial support, key industry-specific resources, and step-by-step guides for specific industries as they prepare to open again.
The report also goes beyond the data to reveal the significant equity gaps black small business owners face. Case studies from the report delve deeply into the structural inequalities exacerbated and exposed by COVID-19, such as the true extent of the racial wealth gap. The report said, “Talent and hard work are not enough to achieve financial success, but those are the prevailing messages we hear. Unbiased networks and support structures must now be supported on a large scale.”
Hello Alice recommends the following actions based on your data:
- More loans and grants. Black business owners overwhelmingly requested access to finance in amounts between $ 10$, 000-50,000.
- Expand government programs. The demand for rent relief, tax deferrals and tax exemptions were a common theme.
- Targeted range. It is not enough to express support; Industry-specific groups must actively reach black owners and involve them in their networks.
- Get involved in the following organizations: Black and brown founders, digitally divided, and divine.
The full”Effects of COVID-19 on black entrepreneurs“Data report is available here and at blackbiz.helloalice.com.
Follow the online conversation on Twitter using the hashtags #BusinessForAll and follow @helloalice.
For media inquiries, please contact Sarah Wegrzynski at [email protected].
ABOUT HELLO ALICE
Hello Alice is a free, multichannel platform that helps companies get started and grow. With a community of more than 200,000 business owners in all 50 states and around the world, Hello Alice is building the largest network of business owners in the country while tracking data and trends to increase the success rate for entrepreneurs. Our partners include enterprise business services, government agencies, and institutions looking to support small and medium-sized businesses to generate higher revenue and grow size. Co-headquarters in Houston and San Francisco, and founded by Carolyn Rodz and Elizabeth Gore, we believe in a business for everyone by providing access to all property owners including women, blacks, veterans and anyone with an entrepreneurial spirit. To learn more, visit www.helloalice.com, as well as Twitter, LinkedIn and Instagram.
Sarah Wegrzynski, Skai Blue Media
SOURCE Hello Alice