In the midst of a global pandemic and economic recession, 9 million small businesses are at risk of closing this year. The outlook is even worse for minority-owned businesses—8 out of 10 stated their company was in poor financial condition, even after Paycheck Protection Program (PPP) loans. At the same time, U.S. census data shows a record-breaking surge of new small businesses. Use the article, video, and our accompanying discussion questions to help students reconcile both realities.
Article & Video: https://www.cbsnews.com/news/small-business-federal-aid-pandemic/
Discussion Questions:
- Ask students to make sense of the increased numbers of new businesses during a global pandemic with record unemployment numbers. What factors contributed to these dual phenomena?
- Discuss the racial wealth gap. How do racial disparities in loans impact Black and minority-owned businesses? Why is this especially concerning? How should we (government, communities, students) address this lack of equity?
- Ask students to discuss the unequal nature of this recession. Who typically starts new businesses? What characteristics make them better positioned to take the economic leap? How does this impact the rate of entrepreneurship during a global crisis? How does this affect those that remain unemployed? What about those who started the new businesses?
- Discuss vaccine efforts and the potential for a return to a “new normal.” Do students agree with Irina Ivanova’s comments about economic optimism and the expected spending surge?
- Consider the differences between small businesses and large businesses. Ask students to discuss how and why large companies were able to secure millions in federal loans. Encourage further research into the success of “high earners” and big businesses during the pandemic. How can large companies act ethically during a global crisis?
- Ask students to think about how small businesses closing isn’t always a bad thing. When might this be true? What circumstances make this a positive instead of a negative situation?
- Irina Ivanova mentions that “the success of these small businesses depends on whether the habits we’ve developed during this pandemic stick around.” Ask students to discuss these habits. Which do they believe will stick around in the future, and to what extent? What businesses will stand a better chance of survival?