Main Street’s Pandemic Recovery | This Fourth-Generation Movie Theater Entrepreneur Grew His Chain During Covid | Tips For Aspiring Entrepreneurs

Plus: How Ukrainian Entrepreneurs Are Sidestepping The Russian Censors

Many small businesses have not yet seen their revenue return to pre-pandemic levels. And supply chain issues and staffing shortages are only exacerbating the situation. According to a recent survey by the Federal Reserve Banks, 85% of small businesses experienced financial challenges in the past year. 

The survey, which was conducted from September through November 2021, asked nearly 11,000 small businesses about Covid-19’s continued impact on their companies and the workforce challenges they’ve been experiencing. Respondents were also asked about business performance, financing needs and borrowing experiences. Some 77% of surveyed firms said the pandemic was continuing to have a negative effect on their business, though 66% had received pandemic-related financial assistance in 2021, down from 87% the year prior. As one might expect, the data shows that the pandemic has disproportionately affected firms in the leisure and hospitality sector, as well as those that are smaller and those owned by people of color. As Forbes Contributor Rohit Arora writes, making financing available to businesses owned by people from underrepresented communities is crucial to their survival. 

It’s not all bleak though. The Biden administration and SBA have prioritized helping Black women-owned businesses. SBA Administrator Isabella Casillas Guzman recently announced 10 new grant opportunities worth $1.5 million for private, nonprofit organizations to provide entrepreneurial development services to women, especially those from socially and economically disadvantaged backgrounds.

More good news: Small business lending is steadily improving, albeit slowly. The pandemic has also accelerated the shift to digital lending, and more small business owners are now comfortable with borrowing or applying for credit online. 

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"We live in an experience economy. People crave experiences. They want to get together."

Mitch Roberts

Founder, EVO Entertainment Group

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Founded in 2015 by Kim Folsom, Founders First Capital Partners aims to help small businesses led by diverse and disadvantaged business owners located in low to moderate income areas less connected to the traditional funding networks of Silicon Valley and New York City. The San Diego-based firm combines an accelerator model and direct funding to enable small businesses to grow and scale. 

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