Oct 13, 2020 - Economy

3. Minority-led SMBs turn to digital tools because of lack of funding

Small businesses owned by minorities were more likely to make the most out of digital tools during COVID-19, according to the Digitally Driven study.

Why it’s important: These minority-owned businesses that quickly adapted to the new normal and have a higher comfort level with digital tools have become more focused on long-term business goals through the pandemic.

Minority groups are leading the digital drivers’ category – those who are early adopters and are constantly deploying new technologies to scale their businesses.

Among digital drivers:

  • 46% are Black-owned businesses.
  • 41% are Latino-owned businesses.
  • 38% are Asian-owned businesses.

The challenge: The study found that minority-owned businesses were roughly half as likely as white-run businesses to have received aid through public loans like PPP.

What this means: Despite being digital drivers, minority-owned SMBs have been the hardest hit by COVID-19 and are not receiving the funding needed to deploy their strategies.

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