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NextGen Magazine

 
 

Rent a Struggle for 44 Percent of Minority-Owned Businesses

By:
Chris Gaetano
Published Date:
Nov 18, 2020
A recent survey has found that 44 percent of minority-owned businesses could not afford to fully pay their November rent, according to CPA Practice Advisor. This is in contrast to 35 percent of woman-owned businesses and 32 percent of small companies overall. Absent additional federal aid,  many of these businesses may be forced to close shop permanently .

Regionally, New Yorkers have also had the most trouble paying rent, as 40 percent of Empire State small business owners could not fully pay their rent this month. In contrast, North Carolina small business owners had the easiest time paying rent in full, with just 25 percent saying they could not (though one out of ever four small businesses in that state is still very troubling, so "easier" is relative).

In terms of industries, beauty salons had the most trouble paying their rent, with 46 percent unable to pay in full, followed by restaurants (42 percent), retailers (38 percent), gyms (also 38 percent), and entertainers (36 percent).

The accounting profession was among those most able to pay their rent in full, with only 22 percent unable to do so. Yet again, as with the North Carolina example, this still means that more than one in five accounting practices cannot pay their rent, not necessarily a good sign.