Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for August 3:
- Washington, D.C. in stalemate over unemployment benefits
- One-third of New York City small businesses closed permanently
- Small biz owners lose marketing power with TikTok ban
Congress in stalemate over unemployment benefits
“Those that are counting on enhanced unemployment need to be gravely concerned about the lack of progress.”
The deadline for extending federally supplemented unemployment benefits has come and gone and lawmakers are no closer to reaching an agreement than they were last week.
While both parties have acknowledged the need for government intervention, policies priorities look very different on either side of the aisle. The Trump Administration has said it will take unilateral action if Congress doesn’t act soon.
One-third of NYC small businesses closed permanently
“We had to keep reinventing the business every week to 2 weeks, based on new guidelines.”
Since March 1 of this year, more than 2,800 small businesses in New York City have closed permanently. While many of these businesses were thriving before the pandemic, economists estimate that up to one-third of the city’s 240,000 small businesses will not open again after the pandemic.
One third of New York small businesses are responsible for employing 520,000 people. Many of these businesses attempted to adapt to continue bringing in revenue, but constantly shifting guidelines, low-to-no cash reserves, and a drop in tourism and consumer spending have made it impossible for many business owners to stay afloat.
Small biz owners lose marketing power with TikTok ban
“It has actually doubled our income so we are really grateful for that.”
For small business owners who have joined the millions of Americans spending quarantine watching TikTok videos, the potential ban of the social media video platform by President Trump could mean more than just losing a source of entertainment, it could mean lost revenue.
Social media savvy business owners have turned to TikTok to entertain and attract customers during the pandemic. While TikTok does have a small business ad platform, SBOs also use it for organic customer outreach.