By Amy Yee | Bloomberg
Small U.S. businesses owned by minorities are more likely to experience financial hardship than the average in a nationwide survey showcasing an uneven or halting recovery for those firms.
Nearly 60% of businesses with fewer than 500 employees were in fair or poor financial condition, while 77% said the pandemic continues to have a significant negative impact on operations, according to a report from the Federal Reserve’s 12 district banks released on Tuesday.
The responses varied significantly depending on the owners’ race.
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Overall, leisure and hospitality sectors were especially hard hit, with half of those small firms reporting a large negative effect from the pandemic, compared with 26% of those in manufacturing.
A majority of businesses, 60%, cited both hiring or retaining staff and supply-chain issues as among their top challenges, the survey also found.
The Fed banks surveyed more than 10,900 small-business owners in 50 states from September through November 2021, in an online questionnaire conducted in English and Spanish.