It’s time to double down on the Fundamental Economy: America’s small businesses.
Over the last year, small businesses overhauled their operations and revenue strategies to adjust to ever-changing circumstances. Whether it be setting up remote work, managing supply chain disruptions or debuting new products, pivoting became course of business.
According to our new survey of more than 2,500 Goldman Sachs 10,000 Small Businesses participants, the majority of them believe 2021 will be better than 2020, but only half believe it will be better than the economy they knew before COVID-19 hit.
At the top of their concerns is a lack of access to capital, especially among Black women business owners. Our research shows that, though Black women are the most likely to prioritize hiring more workers if they receive funding, they are the least likely to secure funding or have a banking relationship.
This is the same kind of inequity that prompted us to launch our One Million Black Women initiative. There is concrete evidence that addressing the challenges Black women entrepreneurs face will spur greater job creation in the economy at large.
I also hear from small business owners that they are struggling to find and retain good employees. They know that employees with people skills, rather than technical skills alone, are essential to their sustained growth and recovery.
Our small-business owners are well-positioned for a strong rebound, but after the strain of the past year, they know how fragile their gains are. To build an inclusive and sustainable recovery, we need to support our fundamental economy and the small businesses that create it.