LOS ANGELES, Oct. 6, 2020 /PRNewswire/ -- Despite
experiencing significant hardship during the COVID-19 pandemic, a
higher percentage of minority small business owners (SBOs) across
the U.S. are innovating to keep their small businesses afloat than
their non-diverse counterparts, according to new research from
Union Bank, a leading West Coast bank.
According to the Union Bank Small Business Mindshift 2020
survey, as of October 2020, minority
SBOs, including Black, Latinx, and Asian American are two times
more likely to say COVID-19 has had a positive impact on their
business. As a result of their adaptability and agility, 34 percent
of minority SBOs see a path forward to how their business can
survive, compared to 20 percent of non-diverse SBOs.
However, over half of U.S. minority SBOs are still calling for
more support – from their government (66 percent), from their
communities (59 percent), and from the private sector (51
percent).
"This pandemic has hit all small businesses, and particularly
minority owned small businesses, extremely hard, especially in
California where we have had some
of the most sustained and stringent closure guidelines," said
Todd Hollander, Head of Business
Banking and Small Business for Union Bank. "But every day we see
our clients finding creative ways to keep their doors open and
their employees paid. We are here to support them in those efforts
both as a bank and as members of our local communities."
Despite this desire for additional support, U.S. minority SBOs
have demonstrated significantly more adaptability than non-diverse
SBOs during COVID-19 by adjusting their business practices – these
changes include:
- Products or services (52 percent minority SBOs vs. 38 percent
non-diverse SBOs)
- Online retail options (50 percent minority SBOs vs. 35 percent
non-diverse SBOs)
- Delivery options (47 percent minority SBOs vs. 29 percent
non-diverse SBOs)
- Online advertising (40 percent minority SBOs vs. 26 percent
non-diverse SBOs)
"These survey findings reinforce what we already know – minority
small businesses have always worked hard despite difficult
circumstances or external environments – and as a result, have
constantly been more resilient and adaptable," said Frank Robinson, Diverse Markets and
Community-Based Programs Executive for Union Bank. "Minority small
businesses are at the heart and soul of their local communities,
and as such, we are committed to helping them recover and thrive
through our recently announced $10
million Community Recovery Program and other
initiatives. We seek to provide them added support through critical
economic stability and the tools necessary to succeed moving
forward."
California-based SBOs are
struggling, but minority owners are more resilient.
SBOs in
California are feeling more
deflated and uncertain, as only 13 percent say they see a path
forward, compared to 23 percent of SBOs across the U.S.
However, minority SBOs in California are demonstrating more innovation
and optimism – which could be a product of their stronger community
bonds.
Not only are minority SBOs in California more likely to have embraced their
community leadership roles with 55 percent feeling an increased
sense of responsibility to help their community (vs. 44 percent of
non-diverse SBOs) – but they're also getting more support in return
with 39 percent feeling supported by their local community (vs. 33
percent of non-diverse SBOs).
"Each day I see the power of mutual responsibility and
camaraderie between our minority small business owners and their
local communities," said Lilly
Rocha, Executive Director, Los Angeles Latino Chamber of
Commerce. "As we work to recover our nation's physical and economic
health, we should learn from these minority communities and embrace
this critical responsibility to lift each other up – particularly
our local small business owners who have been hit hardest."
Success and survival – determined first by a vaccine and then
the election.
SBOs across the
United States are highly engaged in the upcoming general
election – with two in three saying it's the most important
election in their lifetime and one in three saying the outcome of
this election will determine their small business' survival.
But despite this, the highest percentage of SBOs rank getting a
COVID-19 vaccine as–the No. 1 issue affecting their business
success over the next six months – 24 percent compared to only 18
percent for the presidential election.
As a unified front, SBOs across the board agree that not
politics, but science – and a COVID-19 vaccine – will be the
determining factor toward recovery and further success.
About the Union Bank Small Business Mindshift 2020
survey
Research was gathered through an online survey of 850
SBOs across the U.S. and 151 SBOs in California, commissioned by Union Bank and
conducted by independent research firm Edelman Intelligence. SBOs
were defined as those who own businesses with 2-99 employees. Data
was collected August 26 –
September 8.
About Union Bank
Union Bank is a full-service bank
with a rich history of investing in our clients, communities and
colleagues throughout the West Coast for more than 150 years. Union
Bank provides a wide range of personal and business banking
products as well as wealth management services. With nearly 340
branches in California,
Oregon and Washington, Union Bank remains committed to
serving the needs of its local communities. As a member of the
Mitsubishi UFJ Financial Group (MUFG), one of the world's largest
financial institutions, Union Bank holds our clients' best
interests to heart and remains committed to investing in their
success.
About MUFG Union Bank, N.A.
As of June 30, 2020, MUFG Union Bank, N.A. operated 348
branches, consisting primarily of retail banking branches in the
West Coast states, along with commercial branches in Texas, Illinois, New
York, and Georgia. We
provide a wide spectrum of corporate, commercial, and retail
banking and wealth management solutions to meet the needs of our
clients. We also offer an extensive portfolio of value-added
solutions for clients, including investment banking, personal and
corporate trust, global custody, transaction banking, capital
markets, and other services. With assets of $136.3 billion, as of June
30, 2020, MUFG Union Bank has strong capital reserves,
credit ratings, and capital ratios relative to peer
banks. MUFG Union Bank is a proud member of the Mitsubishi UFJ
Financial Group (NYSE: MUFG), one of the world's largest financial
institutions with total assets of approximately ¥341.9 trillion
(JPY) or $3.2 trillion (USD)¹, as of
June 30, 2020. The corporate
headquarters (principal executive office) for MUFG Americas
Holdings Corporation, which is the financial holding company, and
MUFG Union Bank, is in New York
City. The main banking office of MUFG Union Bank is in
San Francisco, California.
1 Exchange rate of 1
USD=¥107.7 (JPY) as of June 30,
2020
©2020 MUFG Union Bank, N.A. All rights reserved. Member FDIC.
Union Bank is a registered trademark and brand name of MUFG Union
Bank, N.A.
Press contact:
Sierra Wilson
(213) 236-5329
sierra.wilson@unionbank.com
Assaf Kedem
T: 212-782-4926
E: AKedem@us.mufg.jp
Edelman PR
unionbank@edelman.com
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