An official website of the United States government
The COVID-19 pandemic has caused unprecedented losses for small businesses in cities across the globe. Policymakers have relied on a wide range of measures to support firms and sustain business continuity. However, significant concerns have been expressed about the degree of equity in the distribution and efficiency of government assistance during the pandemic disruption. Drawing on the case of the Paycheck Protection Program (PPP) and its implementation in inland Southern California, this study examines the spatial distribution of PPP loans at the neighborhood level. Based on spatial regressions and in-depth interviews with small businesses, banks, government agencies, and nonprofit organizations, the study finds that, in terms of their total number and value, the PPP loans have roughly succeeded in reaching their small business targets. However, communities with higher shares of pandemic-vulnerable businesses or higher levels of socioeconomic vulnerability are less likely to have received PPP loans. There have also been spatial spillover effects of community vulnerability when it comes to receiving PPP loans at the neighborhood level. The correlation between fewer PPP loans and community vulnerability also reflects both short-term needs and longstanding challenges facing entrepreneurship and business development in socioeconomically disadvantaged communities. Moreover, small business resilience and community resilience are inseparable, and thus government business assistance must be considered in the context of local communities.
more »
« less
The Impact of COVID-19 on Small Businesses in the US: A Longitudinal Study from a Regional Perspective
Small businesses have suffered disproportionately from the COVID-19 pandemic. We use near-real-time weekly data from the Small Business Pulse Survey (April 26, 2020 - June 17, 2021) to examine the constantly changing impact of COVID-19 on small businesses across the United States. A set of multilevel models for change are adopted to model the trajectories of the various kinds of impact as perceived by business owners (subjective) and those recorded for business operations (objective), providing insights into regional resilience from a small business perspective. The findings reveal spatially uneven and varied trajectories in both the subjectively and the objectively assessed impact of COVID-19 across the U.S., and the different responses to the pandemic shock can be explained by evolving health situations and public policies, as well as by the economic structure and degree of socioeconomic vulnerability in different areas. This study contributes to scholarship on small businesses and regional resilience, as well as identifying policies and practices that build economic resilience and regional development under conditions of global pandemic disruption.
more »
« less
- Award ID(s):
- 2151970
- PAR ID:
- 10375968
- Publisher / Repository:
- SAGE Publications
- Date Published:
- Journal Name:
- International Regional Science Review
- Volume:
- 46
- Issue:
- 3
- ISSN:
- 0160-0176
- Format(s):
- Medium: X Size: p. 235-265
- Size(s):
- p. 235-265
- Sponsoring Org:
- National Science Foundation
More Like this
-
-
Abstract—Periods of unique economic distress such as the COVID-19 pandemic can be quite difficult for small businesses. Challenges acquiring the supplies necessary to adhere to safety regulations created in the wake of such events can introduce stress on these businesses. This is further exacerbated when supply chains have slowed down, leading to global shortages from most large suppliers. This paper proposes a platform to aid such businesses in procuring COVID-19 related supplies such as Personal Protective Equipment (PPE) from one another, leveraging advanced data acquisition, integration, and Natural Language Processing (NLP) methods. With the pandemic end in sight, the platform described in this paper can be reused for other emergencies such as hurricanes, floods, among others. The proposed platform supports business transactions within a Buyer’s Club (BC), keyword-based sourcing of new businesses to join the platform, and matching products to relevant regulations using greater-than-word length encoding, helping businesses comply with the ever-changing regulatory landscape. Index Terms—COVID-19, Disaster, Natural Language Processing, Data Acquisition, Data Retrieval, User Interfacesmore » « less
-
Abstract Background The Coronavirus Disease 2019 (COVID-19) pandemic warranted a myriad of government-ordered business closures across the USA in efforts to mitigate the spread of the virus. This study aims to discover the implications of government-enforced health policies of reopening public businesses amidst the pandemic and its effect on county-level infection rates. Methods Eighty-three US counties (n = 83) that reported at least 20 000 cases as of 4 November 2020 were selected for this study. The dates when businesses (restaurants, bars, retail, gyms, salons/barbers and public schools) partially and fully reopened, as well as infection rates on the 1st and 14th days following each businesses’ reopening, were recorded. Regression analysis was conducted to deduce potential associations between the 14-day change in infection rate and mask usage frequency, median household income, population density and social distancing. Results On average, infection rates rose significantly as businesses reopened. The average 14-day change in infection rate was higher for fully reopened businesses (infection rate = +0.100) compared to partially reopened businesses (infection rate = +0.0454). The P-value of the two distributions was 0.001692, indicating statistical significance (P < 0.01). Conclusion This research provides insight into the transmission of COVID-19 and promotes evidence-driven policymaking for disease prevention and community health.more » « less
-
This paper introduces an extensible framework to predict small-business closures to inform urban planners, lenders, and business owners as to factors to improve business resilience. This paper couples machine learning with two point of interest (POI) datasets and infrastructure data and uses New York State’s COVID-19 PAUSE as a stressor for investigating small-business resiliency. The study included 2537 food-related, non-chain, retail businesses across select New York City zip codes, of which 17.7% closed permanently. Macro-, meso-, and micro-levels of features included the neighborhood profile, street dynamics, and venue-specific, location-related characteristics. A Gaussian Mixture Neural Network model achieved 74.1% precision, 92.5% recall, and an 82.3% F1-score without use of financial data. High-end restaurants located further than average from public transit were most at risk for closure, while non-restaurant, food businesses in commercially diverse areas having higher-than-average social media ratings were least at risk. This paper introduces a model for timely prediction of pandemic-induced, food-related, small-business closures without reliance on private or protected financial data, and provides insights into urban design to promote small, food business survivability.more » « less
-
Alam, Mumtaz (Ed.)When COVID-19 was first introduced to the United States, state and local governments enacted a variety of policies intended to mitigate the virulence of the epidemic. At the time, the most effective measures to prevent the spread of COVID-19 included stay-at-home orders, closing of nonessential businesses, and mask mandates. Although it was well known that regions with high population density and cold climates were at the highest risk for disease spread, rural counties that are economically reliant on tourism were incentivized to enact fewer precautions against COVID-19. The uncertainty of the COVID-19 pandemic, the multiple policies to reduce transmission, and the changes in outdoor recreation behavior had a significant impact on rural tourism destinations and management of protected spaces. We utilize fine-scale incidence and demographic data to study the relationship between local economic and political concerns, COVID-19 mitigation measures, and the subsequent severity of outbreaks throughout the continental United States. We also present results from an online survey that measured travel behavior, health risk perceptions, knowledge and experience with COVID-19, and evaluation of destination attributes by 407 out-of-state visitors who traveled to Maine from 2020 to 2021. We synthesize this research to present a narrative on how perceptions of COVID-19 risk and public perceptions of rural tourism put certain communities at greater risk of illness throughout 2020. This research could inform future rural destination management and public health policies to help reduce negative socioeconomic, health and environmental impacts of pandemic-derived changes in travel and outdoor recreation behavior.more » « less
