Massachusetts small business struggles persist
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Massachusetts small businesses owners say they're still struggling financially more than two years after the COVID-19 pandemic began, despite many receiving federal relief money.
Driving the news: More than half (53%) of small business owners said in a new poll they're bringing in less revenue now than before the pandemic.
- Yes, but: Larger shares of nonwhite business owners said funding and inflation-related cost increases were major concerns, per the MassINC Polling Group survey, which polled 3,243 business owners in Massachusetts.
- Nonwhite business owners have also faced difficulties getting COVID-19 relief funding. Black and Latino business owners were more likely to have received no COVID-19 funding, or smaller amounts, compared with white and Asian business owners, the findings indicate.
Why it matters: Small business owners are also dealing with a new set of concerns in 2022, including supply chain disruptions, hiring challenges and inflation-related increases.
MPG surveyed business owners with under 500 employees, and the vast majority reported having 100 employees or fewer. More than half the respondents were white.
- 60% of respondents said funding was a major concern.
- When broken down by race, fewer whites (55%) considered funding a major concern compared with Latinos (88%), Blacks (85%) and Asians (77%).
By the numbers: 74% of all small business owners said rising costs due to inflation were a major concern. Another 20% considered it a minor concern, and 5% said it wasn't a concern.
- 61% said wages keeping up with inflation was a major concern, while 26% said it was a minor concern, and 11% said it wasn't a concern.
Between the lines: White owners and owners of larger companies were more likely to say they plan to sell their business, or that a senior leader plans to retire in the next five years, compared with nonwhite business owners.
What they're saying: Steve Koczela, president of The MassINC Polling Group, said the poll illustrates that nonwhite business owners are facing major hurdles, but that "there's the possibility of a more diverse future for the small business community than what exists today."
