October 12, 2020
Main Street Monday – Survey Finds Minority Small Business Owners Are More Adaptable
According to new research conducted by Union Bank, a higher percentage of minority small business owners across the U.S. are innovating to keep their small businesses afloat during the COVID-19 pandemic compared to their non-minority counterparts. Survey results show that minority small business owners —including Black, Latinx, and Asian American— are two times more likely to say COVID-19 has had a positive impact on their business and 34% say that they see a path forward to how their business can survive (14% higher than non-minority respondents).
Other key findings published by Union Bank include:
- Compared to non-minority respondents, minority small business owners are more likely to say that they adjusted their products or services (52% compared to 38%), added online retail options (50% versus 35%), expanded delivery options (47% compared to just 29%), and invested in more online advertising (40% versus 26%) in response to the ongoing pandemic.
- Despite their efforts to adapt, over half of U.S. minority small business owners still need more financial support. Of those still seeking support, 66% are hoping for government aid, 59% are reaching out to their communities, and 51% plan to get help from the private sector.
- 2 out of 3 minority small business owners said the November election will be the most important election in their lifetime as a small business owner and 1 in 3 are saying the outcome of this election will determine their small business’ survival.
“This pandemic has hit all small businesses, and particularly minority-owned small businesses, extremely hard,” says Todd Hollander, Head of Business Banking and Small Business for Union Bank. “But every day we see our clients finding creative ways to keep their doors open and their employees paid. We are here to support them in those efforts both as a bank and as members of our local communities.”
“These survey findings reinforce what we already know – minority small businesses have always worked hard despite difficult circumstances or external environments – and as a result, have constantly been more resilient and adaptable,” adds Frank Robinson, Diverse Markets and Community-Based Programs Executive for Union Bank. “Minority small businesses are at the heart and soul of their local communities, and as such, we are committed to helping them recover and thrive.”