Economy of Shortages & Wealth Inequality 📭

View this email in your browser
Small Business In The Economy of Shortages

We’re living in the economy of shortages. 

The Great Food Shortage

At its start, the pandemic brought us images of vast trenches of rotting onions, piles of abandoned produce, and lakes of wasted milk, dumped by farmers who no longer had restaurants to buy their products. 

But over the course of the pandemic, small businesses have faced constant snags when ordering from major produce and specialty food purveyors. The way that the vendors treat small businesses has been overwhelming and crazy. Most of them have raised prices, and their minimum order is now higher than it used to be. But for small businesses, being forced to spend hundreds of dollars on a minimum order makes it hard to turn a profit.

Not just this, but the inconsistency with which ingredients are available is also frustrating. Local food is not even local anymore. Often restaurants will order something local and when the delivery box will come it’ll be from another state or even country.

The Great Material Shortage

When indoor dining was shut down and restaurants pivoted to outdoor seating, they were required to outfit their sidewalk spaces with reflective tape to protect them from passing cars. Homeowners with newfound WFH freedom, tried to rebuild/redecorate their houses and patios. Construction companies were running record orders to build isolated workstations and office rooms. Only the materials were near impossible to find. 

The material shortage has been so bad that restaurants couldn’t even find reflective tape. The plywood needed to build outdoor patio is exponentially more expensive than it had been in 2019 — the price of lumber was, for a time, sky-high, spurred by a housing boom, renovation projects, and the fact that while demand is extremely high, many mills shut down temporarily to institute new safety measures.

These shortages aren't just limited to the U.S. The U.K. and other European countries are also facing a food shortage. Recently, Bloomberg projected the global auto industry to lose $61 billion of 2021 sales due to chip shortages. Supply chain disruptions and lockdowns around the world coupled with labor crunches are the main reasons for the economy of shortage. 



Influencers and the Wealth Inequality

Plenty of the influencers clogging our TikTok and Instagram pages are people who still can’t legally drink, but the savvy required to make it online is distinctly corporate. Creators are drafting contracts, negotiating pay for nebulous freelance assignments, and sending stern follow-up emails — tasks Millennials didn’t master until college.

But do these skills and savviness translate to wealth equality? 

A report from UK-based influencer marketing agency - SevenSix, found that 37% of influencers surveyed said the fees they can charge can decrease because of their ethnicity. And 99% of those influencers were people of color. 

Just like how the child who’s a double legacy at Harvard has a leg up in college admissions, the same goes for the influencer born into privilege. White creators have a built-in network of lawyers; they are better primed to know where to look for secrets of social media algorithms, payouts, and influencer sponsorship deals. Meanwhile, BIPOC influencers are left to navigate a new space that is a breeding ground for the same pay inequality and discrimination that contaminated virtually every other industry before it.

Collab Crib, TikTok’s first-ever 9-member Black content house, says creating a unique post on their accounts can start at $50,000, which works out to about $5,000 per creator. By comparison, Addison Rae is said to earn over $69,000 per sponsored Instagram post, while the Clubhouse Beverly Hills can rake in about $1.3 million for group content.

Their fame stems from an algorithm that may favour white creators, with TikTok facing consistent charges of racial bias in its algorithm and content moderation. For every Shawn Mendes and Dixie D’Amelio, there are hundreds of BIPOC creators who get bogged down by predatory managers and racial inequalities. Their accounts are also heavily monitored, with Kenny Knox losing a Target gig for using the N-word in a recent video. Other white influencers like Felix Kjellberg appeared to get away with worse, including anti-Semitic jokes, filming dead bodies, and throwing un-masked parties during the coronavirus pandemic.


3 Things I Wish I Knew Before Starting My Business
To build a business that lasts for the rest of our life, it has to be extraordinary. But how do we determine that the great business idea we just got is actually a great business idea?

Biden's $25B Small Business Plan

Build Back Better has plenty of goodies for small businesses. 

The $3.5 trillion budget reconciliation package--also known as President Biden's "Build Back Better" agenda -would inject $25 billion into small-business-related programs.

The bill would allow the U.S. Small Business Administration to make its popular 7(a) and 504 loans directly, instead of through a commercial bank. It allocates about $4.5 billion over 10 years for 7(a) for direct lending, and $2.8 billion over 10 years for 504. Further, the bill allows for 7(a) loans of up to $1 million for manufacturing companies and up to $150,000 for other small businesses. 

The new bill would also create SBIC subprograms, called venture small business investment companies (VSBICs). They would invest $9.5 billion in "underserved markets and critical industries” and allocate another $20 million for a mentorship program for less experienced fund managers.



Shorts ⏳
  • Apple with Putin - Apple and Google shut down a voting app in Russia meant to help opposition parties following President Vladimir Putin's directive. 
     
  • TikTok bans theft trends - A new trend on TikTok dubbed "devious licks" which requires students to steal supplies from schools (including microscopes and Covid tests) has been banned by the app. 
     
  • Netflix deal for Dahl - Netflix has bought rights to all the works of Roald Dahl with plans to turn them into live-action films, TV series, games, theatre and consumer products.
     
  • UK's A.I. Plan  - The U.K. government released a 10-year plan to make the country a global “artificial intelligence superpower”, rivalling the likes of the U.S. and China.
     
  • The rich lonely guy car - This startup's $18,000 electric car has only one seat.
     
  • France for Startups - France ranks first for small business survival in Europe with 70% of startups in the country still in business after 5 years. 
     
  • Iceland for Women - Iceland elected Europe's first female-majority parliament with 33 out of 63 seats being held by women lawmakers. 

Stash Recommends: Tools to Explore
👨🏽‍💻 LANSA: Visual LANSA’s unmatched hybrid low-code development platform enables the rapid building, deployment, and operation of the apps that make your business run.

🐞 ShakeA bug reporting tool for mobile apps that helps testers to report bugs easier and enables developers to solve them faster.

🎤 GitPitchA specially designed Markdown presentation tool to create slide decks for conferences, meetups, and tech training.

🧦 Shadowsocks: An innovative tool that serves as a highly secure socks5 proxy. The tool has been designed for providing protection to your internet activity.


 
Twitter
Facebook
LinkedIn
Copyright © 2021 StartupStash, All rights reserved.

Drop us a line:
hello@startupstash.com






This email was sent to you
why did I get this?    unsubscribe from this list    update subscription preferences
StartupStash · Yirmiyahu 43 · Tel Aviv 62747 · Israel

Key phrases

Older messages

Freelancers & Fairness in the Gig Economy 🔨

Tuesday, September 21, 2021

Plus, History vs. Tax Hikes and the I Quit Economy View this email in your browser Freelancers and Fairness in the Gig Economy The gig economy has existed for decades, but only became mainstream in the

Labor, Wages & Rights, SPACs Bubble Burst 💰

Tuesday, September 14, 2021

Plus, The Trust Issue In Female-led Startups View this email in your browser The Real Debate: Labor, Wages or Rights? The labor shortage isn't new. Businesses nationwide are complaining about the

Healthcare Workers Turn Entrepreneurs, Instagrammers 💉

Tuesday, September 7, 2021

Biden Says: Extra Unemployment, Extra Taxes View this email in your browser Healthcare Workers Turning Chic Entrepreneurs The pandemic has been especially hard on healthcare workers. While many people

$17 Trillion Cash Hoards💰, How To Quit Your Job

Tuesday, August 31, 2021

Plus, Entrepreneurs Are Winning The Online Dating Game View this email in your browser Entrepreneurs: The Winners Of Online Dating Entrepreneurship can be sexy. According to data from dating website

Gen-Alpha, Cannabis Labs & Mom Economy 👪

Tuesday, August 24, 2021

Plus, Hiring Crunch In Small Businesses View this email in your browser An Old Shoe Factory Turned Into a Cannabis Lab With states increasingly legalising the sale of medical and recreational marijuana

🔴🔴 Ibrahima Konate strange truth emerges as Daniel Farke reveals dressing room altercation

Wednesday, September 22, 2021

Liverpool Echo Latest LFC stories from the Liverpool Echo Read in browser News In Your Area Liverpool FC What's On | Sign In Today's Highlights See more highlights... Kaide Gord Latest LFC

Vanessa Wagner

Wednesday, September 22, 2021

Good morning. Today we're listening to Vanessa Wagner, a French classical pianist. She studied at the Conservatoire de Paris and has released many albums performing the works of composers like

How to get more from your marketing this holiday season

Tuesday, September 14, 2021

Discover the key to working smarter, not harder. Sailthru Logo. Work Smarter, Not Harder. The marketing landscape is constantly evolving — and so are consumers. From the pandemic to data privacy

Weekend Reading — 🛏️ If you love someone, let them nap

Saturday, September 11, 2021

This week we crack the naughty word list, reduce drag, make it rain, and use this one hack to improve the relationship with our ISP. Weekend Reading — 🛏️ If you love someone, let them nap By Assaf

Wealth, twitter fights, and gen-z

Saturday, October 23, 2021

​ Howdy! ​ Here's a few things I found lately that I think you'll enjoy: 💰 Thoughts on wealth, from Logic: Jordan Harbinger interviewed Logic (the rapper) on his podcast. Logic grew up poor,

The Trump SPAC frenzy, Tesla rides to a new high, and how new surveillance technology is reshaping U.S. neighborhoods

Saturday, October 23, 2021

View in browser October 22, 2021 Hello! As promised, we finally have an event site for our get-together next month with the full agenda and all the other deets you'll need. (Better late than never,

10words: Top picks from this week

Friday, October 22, 2021

10words.io Discover new apps and startups in 10 words or less Zuitte: Your Business, In One App™ To The Moon+: Making E-Commerce Apps work as play Mindleap: Mindleap brings advanced mental health

Bootstrapped Founder #107: Too Little, Too Much: Advice and How to Take It

Friday, October 22, 2021

​ The Bootstrapped Founder Logo ​ ​ Dear founder, "For even the very wise cannot see all ends." ― Gandalf, JRR Tolkien, The Fellowship of the Ring Whenever people talk about advice, they

Creating a successful podcast with Jane Portman

Friday, October 22, 2021

This week's episode of the Bootstrapped podcast is ready for you. Hi Bootstrappers, Today's episode of Bootstrapped continues the mini-season of interviews, while my co-host recovers from a

Small Business, Big Lessons: A new podcast by Buffer 🎧

Friday, October 22, 2021

Go behind the scenes with inspirational small businesses who are truly driving innovation and redefining how work happens. ‌ ‌ ‌ Image Happy Friday 👋 Yesterday, we launched a new podcast Small Business

Snap slips, Adam Neumann resurfaces. and how many users does Facebook have? The company isn't so sure

Friday, October 22, 2021

View in browser October 21, 2021 Hello! One quick mention before we finally put together an actual event website: We are *thrilled* about two more guests who are joining us Thursday evening, November

Celebs go mad for European angel investing ✨

Friday, October 22, 2021

Quantum banking's here | Startups with gigacorn potential | Why all angels need a thesis View this email in your browser Hi Sifted Reader, What links Harry Potter star Emma Watson, pop star Cheryl,

hot tech men

Thursday, October 21, 2021

China venture $. Taking on SWIFT. Dank pie chart. VIEW IN BROWSER CBINSIGHTS October 21, 2021 Bed breakfast & beyond Hi there, Here is this week in charts. THIS WEEK IN CHARTS Source: CB Insights

📰 SaaS Tribune Weekly - 21 Oct

Thursday, October 21, 2021

SaaSHub logo SaaSHub Weekly - 21 Oct Our weekly list of useful, trending and featured products BeatSense logo BeatSense Discover great music hand-picked by real people, in a single click. FREE and in