Houston Hispanic-owned businesses face impacts during pandemic
The pandemic insists on causing American economic adversities, specifically Hispanic businesses located in Houston. Most of these businesses are struggling to grow and this reflects on how the Houston economy works.
In general, it begins with products on store shelves being low, stock markets crashing, unemployment recovery seeming impossible and other challenges individuals came face to face with.
A survey made by the Hobby School of Public Affairs shows how much has been done to Hispanic businesses in Texas.
“More than half of Hispanic business owners and leaders said sales had dropped since the pandemic took hold last spring, and more than one-third said they had furloughed or laid off more than 80 percent of their workforce,” a Hobby School survey found.
Hispanics make up about 38 percent of businesses in the Houston area, which means that the economy will suffer based on whether the business succeeds, according to the Hobby School survey.
“We have identified a number of issues affecting Hispanic entrepreneurs and other small businesses,” Hobby School associate professor Pablo Pinto said. “The first one is the drop in consumption which has significantly reduced revenue; the second one is access to finance to cover outstanding expenses and liabilities (including working capital, Paycheck Protection Program and loans) and remain open until conditions improve.”
“Efforts to reopen the Texas economy helped to increase revenues, but these businesses have certainly not recovered,” Dean Kirk Watson said.
During the pandemic, businesses have laid off some of their employees, couldn’t afford to pay rent, shut down their branches or offices, cut down on salary and were forced to move digitally.
These businesses applied to the government’s Paycheck Protection Program relief plan which pardons loans and gives businesses a reason to pay their workers.
“Uncertainty about economic recovery is the main hurdle to business recovery,” Pinto said.
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