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Oct 13, 2020 - Economy & Business

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

Axios Studio

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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