Listen to this articleSmall, independently owned businesses drive local economies.
Black entrepreneurs are using their vision and talents to create new businesses, gaining financial freedom and independence. They proudly participate in the American dream and take on the risks and responsibilities that ultimately build strong communities. Unfortunately, legislation enacted around the country, and under consideration in Albany, directly threatens small businesses still struggling to recover. If these policies continue their march across the nation, they will threaten the independence and viability of local small businesses and the risk-takers who struck out on their own, including those from communities historically excluded from economic opportunities.
Policies under consideration in other states will strip decision-making power from small business owners. Oversight will be given to entities unaffiliated with local communities. Putting unchecked power into workforce standards boards or considering proposals placing distance between local business owners and day-to-day operations and both employees and customers, fails to recognize the considerable number of existing laws protecting workers.
Pandemic lockdowns made it next to impossible for many independently-owned businesses to survive. Consider that many small retailers were temporarily shuttered, and indoor dining was prohibited for months. Many local operators could not survive on take-out and delivery sales. Historically, Black small business owners have always faced disparity in access to capital and credit, making staying afloat a daily struggle. Prior to the pandemic, 58% of these businesses (Federal Reserve Bank, 2020) were at risk of failure. During the pandemic, Black-owned businesses often fell short of federal aid opportunities, creating an even wider divide that intensified existing historical barriers and disparities.
In 2020, Black business ownership fell by more than 40% (Forbes Advisor, 2021). For black-owned businesses that applied for the Federal Paycheck Protection Program (PPP loans), only 43% (Brookings, 2022) received all of the requested funding. As we rebuild the New York and Long Island economies, any additional policies burdening small businesses seriously threaten our communities.
Business owners are also struggling against shifting economic uncertainties and workforce shortages. However, this does not dissuade Black entrepreneurs from seizing opportunities, creating jobs, and meeting customer needs. Policies that take away small business owners’ ability to make autonomous decisions, while perhaps well-intentioned, do much more harm than good. What they need is freedom and flexibility without limitations.
Imagine removing a local restaurant owner’s ability to make independent decisions. They understand their customers and the role a restaurant plays in the community. They know how to negotiate staffing needs with family, school, and other obligations of their employees. Owners know where to source quality, local ingredients, and other supplies, and they hold the insight to work around any transportation and delivery challenges. Locally informed owners also have the expertise to understand how inflation and other costs affect profitability, and make decisions accordingly.
As we continue rebuilding, strengthening, and expanding New York’s economy, lawmakers and community leaders must support the efforts of Black business owners and local entrepreneurs. They have the tools and the vision to succeed and help communities grow and thrive. Small businesses know best. And New Yorkers know best, especially regarding decisions that are central to keeping the lights on, employees protected, and communities served.
Phil Andrews is president of the Long Island African American Chamber of Commerce.