The Impact of COVID-19 on Diverse Small Businesses In North Carolina
September 2020 Survey Results (3rd Edition)
The 3rd edition survey seeks to understand the continual challenges and long term affects, to which we offer suggestions regarding how we may provide additional support. The most recent survey results revealed some new and existing key points:
- Most of the diverse suppliers are very small, however many are less than 5 employees
- Over half of respondents have been in business over 5 years, showing long term establishment
- Forty-three percent have not applied for grant relief funds, and of those who applied 70% did not receive anything
- Fifty-eight percent have not applied for any loan funds
- Of the businesses that are still operational, many have shifted their business models or have reinvented themselves to survive
June 2020 Survey Results (2nd Edition)
Our 2nd edition seeks to understand those sustained challenges and offer suggestions regarding how we can provide additional support and help. The survey results revealed some key points:
- Most of the diverse suppliers are very small, less than 10 employees.
- Over half of respondents have been in business over 5 years.
- Slightly more than half have received some type of public/government financial assistance.
- Over 90% of respondents have experienced significant revue loss due to COVID-19.
- As a result of state and federal stimulus funding, diverse companies are creatively leveraging those funds to extend their operating capacity. This is significant, since the first survey indicated that most diverse businesses has 30 days of working capital.
April 2020 Survey Results
Through our quarterly survey, we identified six key recommendations for state representatives. They include the following:
- Add construction to essential services, which would exempt them from "stay-at-home policies."
- Encourage municipalities to continue to provide water to residences and businesses.
- Recognize and celebrate corporations like Duke Energy, for continuing to provide critical services to residential and commercial customers.
- Encourage localized grant resources funded by foundations, corporations, philanthropists and local stakeholders.
- Encourage corporations to adjust their payment terms to Net15 or less and forgive late payment penalties in support of small businesses.
- Everyone should be more intentional about buying locally to support small businesses. I’m encouraged because these suggestions are ideas that various organizations are addressing. The American spirit is alive and well. We are coming together, finding new ways of doing business, and caring for one another. I hope these results aid in that effort.