BBI News – COVID
A New Normal Isn’t What We Need By Rustum Southwell, BBI Founding and Interim CEO According to a Brookings Institute report, 60% of White owned businesses that were operating in the States in 2002 were still operational in 2011. For Black-owned businesses, the numbers were at 49%. The reasons behind such outcomes may be numerous but we cannot overlook the historic underinvestment in Black-owned businesses. With the brutality of racism rearing its head yet again with the murder of George Floyd, there is a heightened awareness that not enough is being done for wealth creation in the Black community. This atrocity combined with the impacts of the pandemic has exacerbated existing economic disparities and raised fresh concerns about the survival of Black businesses.
One of the terms being bandied about right now is “new normal”. When times are uncertain, people yearn for the familiar. “New normal” represents a longing for normalcy - a form of stability, old or new. In this case, we seem to have come to terms with the fact that the old will not be back. Not soon at least. Most of Black Business Initiative’s clients are small businesses and if early trends are any indication, we know that the pandemic is giving rise to major shifts and affecting businesses’ critical income and more often than not, reducing the owners’ chances at building wealth. As COVID-19 impacts global economies, governments, organizations and individuals are scrambling to find the best way forward, yet, times are uncertain and in many cases, resources are reduced. This is evermore present in the Black communities across Canada who compared to the mainstream communities, tend to be disproportionately impacted by such events. In Nova Scotia, for example, it is highly likely that a consequence of COVID-19’s would be a wipe out of 20 years of business and community economic development gains in the Black Community. Considering this, we need to back initiatives that support the unique business continuity plans of this vulnerable business sector. In addition, we know that there are many grassroot organizations and businesses in the Black communities that are “informal”
and therefore do not qualify for the existing government relief programs. By necessitating social distancing, COVID-19 has automatically dictated that nearly all human interaction has to be replaced by automation and technology. Main street and most businesses that depended on pedestrian traffic must figure out a way to sell online if they are to survive. It is acknowledged, among other things, that culture is a huge and unique element in Black businesses. It contributes a great deal to decisions around what kinds of businesses people and communities start and how they run them. For close-knit communities - which is every Black community- businesses largely depend on human interaction.
Despite, all we have suffered, I sense a collective optimism within the Black business community. While uncertainty lingers, Black business owners are resilient. They are doing what they can to keep their doors open and I have seen a lot of them swiftly pivot and adopt technology to continue operations. The question is, are our systems ready to help them survive? One way to ensure that the companies we have survive is to act quickly to lessen the impacts of COVID-19. A prompt response also means we spend less time and efforts in recovery. While speed is crucial, I hope we are not quick to feel that the solutions we create in the shortest time will be good enough in the long run. We must be careful not to settle for quick fixes in our quest to settle into our next normal.
Although it may be too early to conclusively tell what the long-term impacts of the pandemic will be on small businesses, lessons from past economic downturns give us a glimpse of what to expect. Consequently, the damage may be worse than forecasted.
In normalcy, a lot suffers, and unfortunately, we get so used to it that we don’t even recognize when things are not right. For Black communities who have been consistently left behind even when economies are thriving, a new normal will be threading water.
Let’s think about the 2007-2009 recession for example. Data shows that small businesses registered the highest job losses.
What Black-owned businesses need is long-term targeted commitments to help them not only survive but thrive post-pandemic.
Very small businesses often bear the greatest brunt of economic crises. Sadly, most of the Black-owned businesses in Nova Scotia are small businesses.
I am convinced that there are better days ahead. Days more stable than today. Days calmer than yesterday.
Race-based data is limited in Canada, but the data from South of our boarders tells a story which I am sure is not too different from our own. BLACK to BUSINESS
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Summer 2020
Yet, my sincere hope is that we are not hasty in settling into a new normal, but rather that we commit to creating systems and processes that allow Black-owned businesses to thrive.
