Alignable: 52% Of Minority-Owned SMBs Can't Afford July Rent
Alignable’s July Rent Poll showed that many industries and groups are still coping with the lasting effects of the COVID era, while others are bouncing back more quickly.
Alignable polled 5,911 small business owners from 7/2/21 to 7/23/21 and learned that the majority of minority-owned businesses (52%) still could not pay their rent in July.
That figure is much higher than the U.S. national average (35%) and the Canadian average (43%), both of which include all demographic groups and industries.
Women Face Ongoing Issues; Veterans Are On An Upswing
More than one-third of women-owned businesses (37%) also did not pay full rent on time in July, whereas fewer male-owned and veteran-owned businesses struggled.
In fact, compared to June, the veteran-owned businesses saw a 15 percentage point increase in the number of owners who could pay their full rent. So that’s a silver lining in this report.
Unfortunately, in comparison to June, the same percentage of women-owned small businesses paid rent in July compared to June.
Only 1% more of the minority-owned businesses could pay their rent this month. And only 2% more of all small businesses could cover July rent in full and on time.
Those increases represent glimmers of hope, but are not all that significant, especially given that 33% of all business owners tell us they're fully recovered at this point and many others have had revenue gains, according to our July Road To Recovery Report.
Rent Troubles Continue For Restaurants, Retailers & Others
Sectors that continue to struggle to pay monthly rent include: nonprofits (64%), entertainers/artists (50%), transportation (48%), event planners (43%), restaurants (40%), beauty salons (39%), gyms/fitness centers (38%), retailers (37%), construction (37%), and travel (28%).
Comparing these industries to our figures from June shows more ups and downs. The good news is that more small businesses in a few industries demonstrated that they could pay their rent this month than in June.
These industries where the ability to pay rent increased included travel (up 14%), event planning (up 7%), construction (up 4%) and beauty salons (up 1%).
However, looking at our chart from June below, you can see that a higher percentage of small businesses in other industries are having more trouble paying their rent. An additional 22% of nonprofits couldn’t pay their rent (jumping from 42% to 64%), largely because they report that donations to many charities are down.
Times are tougher for transportation companies, including individual Uber or Lyft drivers, as 48% this month couldn’t pay rent vs. just 43% in June. Other industries showed increased trouble affording rent, such as entertainers/artists (up 3%), retailers (up 2%), and restaurants (up 1%).
What About The States and Provinces?
Here’s how the situation looks for regional and local stories.
As mentioned above, in the U.S., 35% couldn’t pay rent in July. In Canada, 43% of all small businesses were in the same boat.
States with the highest percentages of small businesses unable to pay full rent include GA (46%), NY (41%), MA (41%), and MD (37%).
In direct contrast, states with the lowest percentages of rent problems were TN (18%), WA (18%), MO (22%), OR (22%), AZ (24%), VA (25%), CO (26%), and FL (27%). (Those figures show another silver lining).
Here are the percentages of small businesses in other states that weren’t able to pay July rent. Many of these figures are still high, though, in past reports, some of these states were in worse shape.
- CA: 35%
- CT: 34%
- IL: 35%
- MI: 34%
- NC: 34%
- NJ: 34%
- OH: 31%
- PA: 32%
- SC: 34%
- TX: 32%
- WI: 30%
In Canada, several big regions showed that over 40% of their small businesses still couldn’t handle paying their full rent on time in July: ON (46%), BC (42%), and AB (41%).
For more information about the states or provinces, or additional statistics related to Alignable’s July Rent Poll, please reach out to me at chuck@alignable.com.
To see other polls we’ve conducted since March 2020, please go to the Alignable Research Center.
ABOUT THE ALIGNABLE RESEARCH CENTER
Alignable is the largest online referral network for small businesses with over 6.5 million members across North America.
We established our research center in early March 2020, to track and report the impact of the Coronavirus on small businesses, and to monitor recovery efforts, informing the media, policymakers, and our members.
Comments (11-20)
Jeff, yes, so much sadness in our world. There is light we can give it when we have it, yet so many families and individuals are hurting right now, and the fires and hurricanes, racial tension, voting suppression, and more surely don't help. I started some groups to hold space for those who need support and need it at a lower cost. We can all do a little something. I still believe all things are working together for our good, and that there is much to learn in this time personally, as communities, and as a world for sure.
This is heartbreaking. As a way to help, i've gotten more involved in community forums and my practice is set up to lend support to No Kid Hungry so that families can have access to support here for food. There are also a few councilpersons who have created more opportunities for those struggling with rent to access financial support. In times like these, we have got to support organizations an communities that we know of who need our support. for my upcoming Couples workshop, I plan on donating a portion to No Kid Hungry and Rent efforts for so many minorities struggling just to keep a roof over their heads. My heart, thoughts, and prayers are with them and us all. Thank you for your thoughtful post Chuck and for everyone who commented. Much love and care to you all.
The big question is why are renters struggling there is plenty of jobs and with all the COVID money they are doing better than before Covid-19
I am a gym and wellness center, have been closed for almost a year, and the landlord is trying to make me pay for the months the CDC closed us down. I am in need of some advive.
The debt free company I represent offers work at home benefits as well as consumable products, you order online and save. If you know anyone losing their job due to being unvaccinated, I can help. Call me at xxx-xxx-xxxx.
Another way to keep us divided. Figures don't lie but liars figure.
The reason for the drop in transport like Uber drivers. Is folk are working from home offices and fears of Covid spreading. Thus less folks needing or wanting rides.
Yes as a minority business owner, I've seen the struggle. I've reached out to other businesses to explore the opportunity to partner. Many are against coming together, working together, in order to help everyone involved. I'd love to help anyone I could, we all have to look at the bigger picture especially if we want to survive.
I know many small businesses that are hurt and need money. We've all had to weather this COVID storm and it seems to be coming back again. I've had to shut down my lady's golf company because my suppliers can't get the items they need to produce the products they sell. In April 2021, I came to learn about a COVID proof unique International business opportunity that is free except for the $49 shipping fee. If you'd like to get more information, please reach out.
I found ways of "making it through" and still figuring it out. I have employed my friends with small businesses (all minority-business owners); a fashion designer, musician/arranger, and makeup artist. I got a job doing my healing work to supplement my business income and renegotiated how I pay for my space. If my landlord didn't agree I would have paused my in person services. I am blessed this wasn't the case. I have also been giving virtual wellness guiding and virtual tap dance lessons and in person private lessons when I can. Creative solutions are needed. I share what knowledge I can and focus on what I want. Please respond if I can help in any way.