Hispanic small business owners have been especially impacted by COVID-19 due to lack of childcare, remote work and direct relationships with those diagnosed with the virus, according to new survey data published by SCORE, the nation’s largest network of volunteer, expert business mentors. This data report and accompanying infographic are released in honor of National Hispanic Heritage Month (Sept. 15 – Oct. 15) and National Small Business Week (Sept. 21-25).
Hispanic entrepreneurs are the fastest-growing segment of business owners in the U.S. While the number of Hispanic-owned small businesses has been increasing since 2013, data shows that minority-owned small businesses, specifically, Hispanic- and Black-owned small businesses, have been disproportionately affected by the COVID-19 pandemic.
“In this fifth edition of The Megaphone of Main Street data report, we explored how the pandemic has impacted small businesses, with a specific focus on Black and Hispanic-owned businesses,” said SCORE CEO Bridget Weston. “We also recently launched the Hispanic Small Business Hub to better support our nation’s 4.6 million Hispanic-owned small businesses. SCORE understands that a thriving, healthy eco-system for minority-owned businesses is crucial for broader economic growth and opportunity.”
Key findings of COVID-19’s impact on Hispanic-owned small businesses include:
- Hispanic-owned businesses were more likely to seek – but less likely to receive – outside funding from non-governmental sources, including expanded lines of credit and new loans, compared to White-owned businesses.
- For example, while 28.4% of Hispanic business owners sought new investors, no survey respondents reported success.
- Hispanic-owned businesses were also more likely to seek – but less likely to receive – government funding, including PPP, EIDL and SBA loans.
Click here to access full Megaphone of Main Street data report: The Impact of COVID-19.
