Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
Monday, Monday. Let’s kick off the week by heading to the Southeastern corner of the country, where remote workers are flocking. Next we’ll check in on how SMBs continue to deal with the new cost of doing business with China. Finally, Latino entrepreneurs are numero uno in new business creation!
Southeastern cities gaining popularity as remote work hubs
As the talent shortage calls for increased perks and scheduling flexibility on the part of employers, more and more workers are heading south — and not just for the winter. Recent census data indicates that southeastern cities are becoming a popular destination for remote workers. A lower cost of living, access to the water and a desire to be close to family are among the reasons remote workers are flocking to the southeastern coast.
The Number: 5%. According to a review of Census data, approximately 5% of the workforce in the cities of New Orleans, Charleston and Palm Bay, Florida work from home. In Austin, Texas a full 8% of workers don’t clock in at an office.
The Quote: “Charleston is very much a lifestyle city, and not as much a business city. A lot of these folks are able to move down here with Northeast salaries, but yet have the Charleston cost of living.”
Small businesses search for ways to soften impact of trade war
The ongoing trade war between the U.S. and China continues to impact small businesses across a number of industries. The cost of doing business has increased for 37% of SMBs, and out of those businesses, 46% admit that they have lost customers. Though another round of talks is tentatively scheduled for next week, companies continue to look for ways to minimize the impact of increased tariffs and disruptions to their supply chain.
The Number: $1.6 million. As trade tensions escalate, so do tax bills. The CEO of Trend Nation reports that with duty rates now between 10% and 40%, his company’s tax bill has jumped from $800,000 to $1.6 million.
The Quote: “It puts us as a small- to mid-size retailer in much of a bind because the MOQ (minimum order quantity) they want from us is astronomical. It’s a struggle to find good partners outside of China.”
Latinos lead the way in small business creation.
A new study indicates that Latino entrepreneurs are leading the way in small business creation in the U.S. Between 2013 and 2017, the number of hispanic-owned businesses increased by over 20% and today these businesses contribute approximately $700 million to the economy. While Latinos are outpacing other groups in starting SMBs, they continue to face significant barriers to funding at higher rates that while entrepreneurs.
The Number: 1.7. According to a new report from the Congressional Joint Economic Committee and the Congressional Hispanic Caucus, in 2017 Latinos were 1.7 times more likely to start a business than any other racial group.
The Quote: “Our future economic success is created by Latinos in every part of the nation.”