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I want to share a few things I learned while researching our campaign’s Small Business platform.
In the LA metro area, 15,000 small businesses have closed since March -- 7,500 permanently. That’s more than anywhere in the country. (thread) https://www.yelpeconomicaverage.com/business-closures-update-sep-2020
In the LA metro area, 15,000 small businesses have closed since March -- 7,500 permanently. That’s more than anywhere in the country. (thread) https://www.yelpeconomicaverage.com/business-closures-update-sep-2020
Small businesses are the backbone of our local economy.
They generate more jobs per unit of sales than large chains and, on average, 48% of each purchase is recirculated locally, compared to less than 14% of purchases at chain stores.
https://cdn.ilsr.org/wp-content/uploads/2011/12/SFRDS-May07-2.pdf?mc_cid=c8896d4a63&mc_eid=314da106d9
They generate more jobs per unit of sales than large chains and, on average, 48% of each purchase is recirculated locally, compared to less than 14% of purchases at chain stores.
https://cdn.ilsr.org/wp-content/uploads/2011/12/SFRDS-May07-2.pdf?mc_cid=c8896d4a63&mc_eid=314da106d9
Rent burden is among the biggest issues facing small businesses that have seen their revenues flatline due to COVID-19.
In response, LA needs to actively incentivize and mediate lease renegotiations in situations where landlords have refused to budge.
In response, LA needs to actively incentivize and mediate lease renegotiations in situations where landlords have refused to budge.
The CA legislature failed to pass SB-939, which would have incentivized landlords to engage in good faith lease renegotiations with commercial tenants.
In the absence of state intervention, LA can do much more to help businesses manage their rent burden. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB939
In the absence of state intervention, LA can do much more to help businesses manage their rent burden. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB939
Looking beyond COVID-19, our city’s system for giving out contracts can be used far more effectively to support local and BIPOC-owned businesses.
Right now, only 20% of the $8 billion the city spends annually goes to LA-based enterprises.
https://www.lisc.org/media/filer_public/64/16/64165a54-93d5-47fc-9011-74c8873d2d7b/a_case_for_inclusive_public_procurement_practices.pdf
Right now, only 20% of the $8 billion the city spends annually goes to LA-based enterprises.
https://www.lisc.org/media/filer_public/64/16/64165a54-93d5-47fc-9011-74c8873d2d7b/a_case_for_inclusive_public_procurement_practices.pdf
One change we could make to LA’s system is “right-sizing” city contracts -- breaking them up into smaller pieces so that small LA-based businesses can actually bid for them.
Another change is ensuring that BIPOC-owned enterprises get their fair share of this business.
Another change is ensuring that BIPOC-owned enterprises get their fair share of this business.
Right now, the city sets goals for minority and women-owned business attainment in procurement.
But these goals are currently voluntary, and many city departments are falling far short.
http://ww1.insightcced.org/uploads/publications/assets/econ-dev-diverse-communities.pdf
But these goals are currently voluntary, and many city departments are falling far short.
http://ww1.insightcced.org/uploads/publications/assets/econ-dev-diverse-communities.pdf
Securing loans is another big barrier for BIPOC entrepreneurs.
LA could publish data it already collects on which banks lend most to small and BIPOC-owned businesses.
This could help educate entrepreneurs, and push banks into addressing racism in their lending practices.
LA could publish data it already collects on which banks lend most to small and BIPOC-owned businesses.
This could help educate entrepreneurs, and push banks into addressing racism in their lending practices.
LA could also directly expand access to credit by creating a public bank.
Unlike private banks, LA’s could prioritize investment in businesses that help their communities, as well as historically marginalized BIPOC entrepreneurs. https://publicbankla.com
Unlike private banks, LA’s could prioritize investment in businesses that help their communities, as well as historically marginalized BIPOC entrepreneurs. https://publicbankla.com
Small businesses are so important to both the economic and cultural vitality of our neighborhoods.
LA needs to step up to support them however it can -- both during this crisis and beyond.
You can read our whole platform here: https://www.nithyaforthecity.com/small-business
LA needs to step up to support them however it can -- both during this crisis and beyond.
You can read our whole platform here: https://www.nithyaforthecity.com/small-business
