A Resilient Small Business Community

by Maria S. Salinas

In early March, the Los Angeles Area Chamber of Commerce led a delegation of Chamber and community members to Washington, D.C. for our annual legislative trip. There, we learned of the severity of COVID-19 after it was officially named a pandemic. Each day, the looming thought of shutting down the economy became increasingly realistic.

I’ll never forget sitting in Sen. Kamala Harris’ office and speaking with her about the importance of relief for our small businesses. They account for 99 percent of all employers in the U.S. and employ more than 56 million people nationwide.¹ In L.A. County, 93 percent of all businesses have 20 or fewer employees. L.A. County is also home to the largest concentration of minority-owned businesses in the United States.

We spoke with Sen. Harris about bridge loans, direct grants and technical assistance investments. At that time, we never could have imagined that Congress would pass a $2 trillion stimulus package. It is estimated that small business closures could reach more than 100,000 nationally. ²

The Los Angeles region is known for its creativity and innovation, a place where small businesses thrive. But in this moment in time, COVID-19 has posed a real threat to our success. Some small businesses have permanently closed, and others have struggled to keep their doors open as business owners navigate the uncertainty. They have been unsuccessful in obtaining relief loans, especially minority-owned and immigrant-owned businesses. The health crisis and recent civil unrest exposed racism, grave inequalities and economic disparities in our community.

While today’s outlook is grim, there is a silver lining. Small businesses have demonstrated that they can pivot. They are nimble, flexible and adaptable to a new way of doing business. Apparel manufacturers pivoted to manufacturing personal protective equipment. Restaurants mastered curbside orders and learned how to leverage social media to attract new customers. Entrepreneurs are re-imaging their business models to tackle the challenges of the pandemic head-on. They are using innovation and technology to reach customers and employees and reaching new markets. Los Angeles has the ingredients for a robust entrepreneurial ecosystem, where business ownership can be an economic equalizer.

The Chamber has always championed public policy that supports our small business sector. In this current environment, we have focused our efforts around relief programs, loans and grants. We’ve supported investments in technical assistance to strengthen small businesses and advocated for more investments in our minority-owned small businesses to ensure that they have access to relief and resources. Every small business starts with a dream and includes a journey of highs and lows, but they don’t give up. This week, several of our small business members shared their stories of persistence and resiliency at our entrepreneurship and innovation conference, BIZCON SoCal. Hear their stories and be inspired.