Our take: It comes as no surprise that minority-owned businesses are some of the hardest-hit by the COVID-19 pandemic. Underlying factors such as limited access to credit, financial distress prior to COVID-19, and a concentration of minority-owned businesses in industries that require some of the biggest social-distancing adaptations (think restaurants or salons) can paint a bleak picture for the future ahead. Yet, our optimism hasn’t wavered.
McKinsey reports that expanded access to funding and creative short-term cash management solutions can pave the way forward for a sector of the economy that generates more than $1 trillion in economic output. More inclusive financial systems that accommodate and recognize the value of minority-owned businesses can be a lifeline in times of crisis, and a growth driver in more prosperous times. Not only that, but we believe that more inclusive financial systems will help all businesses that are hurting right now.
Detroit-based organizer and Emergent Strategy author Adrienne Marie Brown writes, “The most effective strategies for us are the ones that work in situations of scarce resources and intersecting systems of oppression because those solutions tend to be the most holistic and sustainable.” To that, we offer a resounding YES. Brown wasn’t writing about small business finance, but the truth is that concentrating support to minority-owned business owners has the power to lift all boats.
If you own a business, what support are you looking for from your financial institution? Drop us a line at firstname.lastname@example.org and let us know.