The business that resulted from the pandemic had advantages. It doesn’t have to overturn business practices, or it carries out legacy costs like office leasing. Many companies have been built around remote control environments and hygienic precautions. But they weren’t as prepared as their existing businesses for rising inflation and rising interest rates. And, unlike established companies, they didn’t have access to most of the federal relief programs.
Irina Shirotokina sold a stake in a construction company early in the pandemic when contracts for new hotels and office buildings were exhausted.She spends that money Bakery In October, the Wash Battleground was flooded with cake and pie orders, but customers resisted even the slightest price increase.The cost of her main ingredients, eggs, butter, milk and flour Climbed 13 to 49 percent since she first burned the oven. So far, the profits have been elusive, prospects are reducing car trips to town, and no new paycheck protection program is visible.
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“I didn’t qualify for the first, second, or third round of the program, so I created it using all my resources,” says Sirotkina. “But how far do we have to reach before we can get help?”
New businesses and businesses run by people of color are often relegated to online lenders who impose high interest rates on short-term loans because bank loans are particularly difficult to obtain.Last year, Congress hoping to make access to credits easier Assigned $ 10 billion poured into lenders with the clear purpose of reaching underserved entrepreneurs. Money is still coming out little by little.
Nevertheless, there are signs of weakness. Gusto, a salary and benefits provider that serves 200,000 small businesses, Rise was seen With a layoff between the users. The company’s economist, Luke Pardu, said this was important. That’s because small employers usually don’t like letting go of people.
“For small businesses, 10% of our employees can be in the human resources department,” said Dr. Pardue. “Every swing you might see is more meaningful because every employee actually has a special importance that may not exist in a large company.”