Covid undoes a decade of progress in small-business ownership - The Mail & Guardian

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Covid-19 has reversed a decade’s worth of progress made to close the race gap in small business ownership, according to data collected by the economic research institution, Trade & Industrial Policy Strategies .

Presenting the findings during a webinar on Wednesday, TIPS economist Thobile Mawelela showed that between 2010 and 2019 the proportion of formal black-owned small businesses was steadily rising at 3% a year.

“These enterprises tend to have less access to financing and less accumulated historical wealth and assets … So the effect was disproportionate for women-owned enterprises, both within the formal and informal sectors, compared to businesses owned by men,” Mawelela said. Gabriel Davel, the chief executive of the Centre for Credit Market Development, presented his findings on how financing can aid small business recovery.Davel looked at how small businesses fared through the 2008 financial crisis, using this to forecast the trajectory of recovery after the Covid-induced economic downturn. “The picture shows some huge warnings — warnings that I don’t think we are taking seriously enough.

 

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