Advocacy’s annual State Profiles gather the latest federal economic data into state-by-state snapshots of small business economic activity. SBA Office of Advocacy
The policy brief was informed by research conducted with the William Factory Small Business Incubator which is one of the longest serving incubators in America. It is based in Tacoma, Washington and caters to the needs of early and growth stage entrepreneurs.
California, like the rest of the United States, is in the midst of multiple crises, where increasing inequality and racial inequity are exacerbated by the COVID-19 pandemic and its economic and social impacts. After years of struggling with the high price of housing, a bifurcated job market that leaves many shut out of decent employment,
– Small Businesses are struggling to obtain key goods to operate, further financially impacting them as they recover from the pandemic
– Domestic supply delays are coinciding with higher commodity prices for small businesses
Legacies of historical racist policies and ongoing discrimination in areas such as education, employment, and housing have barred many Californians of color from economic opportunities. As a result, Californians of color — particularly Black, Latinx, and American Indian Californians — are less likely to have high incomes and to have built enough wealth to be able to weather periods of income loss, retire comfortably, and pass on wealth to their children. These barriers have also made Californians of color more likely to have experienced health and economic consequences of the COVID-19 crisis. One area policymakers should consider in efforts to address these inequities is the state’s tax and revenue policies. Although these policies may appear race-neutral, they can play a significant role in either worsening existing racial and ethnic income and wealth disparities or promoting greater equity for Californians. A policy need not be explicitly racist in order to have racially inequitable outcomes.1 Because many current state tax policies privilege Californians with higher incomes and wealth, they widen existing racial inequities. Policymakers can also use tax policy as a tool to promote racial equity, both by making the tax code itself more equitable, and by raising revenue to invest in the social and economic well-being of Californians of color.
San Francisco Entrepreneurs of Color Fund: Creating a Continuum of Capital and Consulting The Aspen Institute First published October 2020 Structural inequities—both historical and current—have created barriers for entrepreneurs of color to build wealth and grow their businesses. The San Francisco Entrepreneurs of Color Fund (SFEOCF) seeks to address these inequities by creating a more
The Inland Empire Women’s Business Center and the Coachella Valley Women’s Center conducted a study of their clients to learn more about what helps business owners become employers, creating new jobs for the region. The study also examined the types of jobs provided by micro-businesses and the wages and benefits offered. They discovered that micro-business jobs are often close to home, are flexible to accommodate caregiving and educational pursuits and are a career path.
Each profile focuses on the impact of small businesses in 436 congressional districts. Within, readers can find the congressional district’s total number of small employers and their industry breakout, plus the number of workers employed and payroll expended by small businesses. Additionally, the profiles provide a map showing the total number and distribution of self-employed workers across the district.
In the fourth quarter of 2019, California grew at an annual rate of 2.2%, which was faster than the overall US growth rate of 2.1%. California’s 2019 overall growth rate of 2.6% was down from the 2018 rate of 4.3%. (Source: BEA)
In April 2020, the unemployment rate was 15.5%, up from 4.2% in April 2019. This was above the April 2020 national unemployment rate of 14.7%. (Source: CPS)
The poll, conducted by Chesapeake Beach Consulting for Small Business Majority, surveyed California small business owners between April 7 and 10, 2020. The survey sheds light on a shocking rate of business closures, as well as small business owners’ views on proposals that can help ensure they are able to reopen and recover once the crisis is over.