Everyone is ready to emerge from COVID-19, particularly Detroiters who have been among the nation’s hardest hit by the pandemic.

The immediate and heightened need for products, services and employment is overwhelming, but the reality is that a growing number of the city’s small businesses may not be there to provide it.

According to published reports more than 100,000 small business permanently closed in the eight weeks beginning in mid-March. Many businesses have been forced to shut down entirely. Those that remain now must absorb additional costs to conduct business safely, all while facing diminished COVID-19 related drops in customer counts.

Throw in the number of business damaged and/or destroyed due to civil unrest, and you can see how small businesses and the neighborhoods they call home are in precarious times.

These headwinds of crises have changed the one-promising trajectory into an economic tailspin.

PRECARIOUS & PIVOTING

Small business owners are pivoting quickly and adjusting their business models to meet updated and costly COVID-19 operating requirements.

Although I’d like to remain optimistic, it’s probable that many more small business failures are ahead.

That reality will hit us hard. After all, small businesses are big employers

According to the U.S. Small Business Administration (SBA), small businesses account for 99.7 percent of firms with paid employees, and make up more than one-third of known U.S. exporting value. What’s more, from 2000 to 2017, small businesses accounted for more than 65% of net new job creation.

With such a large footprint in the U.S. economy, it’s clear that small businesses are the backbone of America.

What can be done to help small business owners now?

Build Awareness of Funding Opportunities: Local municipalities need to continue to build awareness of traditional and non-traditional funding sources for small businesses.  There are local and state agencies (SBS, MEDC, TechTown, Michigan Women Forward, et. al) offering grant and loan programs.  Unfortunately, businesses do not understand the processes and criteria required to access these dollars. And, sadly, a large number of those applying for loans are not optimistic that their efforts will be rewarded.

Rent Abatements/Occupancy Flexibility: It is critically important for landlords to be willing to negotiate flexible rent terms, (i.e. rent abatement) based on adversely impacted revenue streams.  It’s better to have partial rental income than none at all.  And business owners will appreciate landlords listening to their concerns and working with them during these unique times.

Promote and Encourage Local Shopping:  Develop programs which encourage residents to shop local, whether online or in-person.  This should not be a one-time effort, but offer during the year focused on driving consumer traffic.  Think about the now-defunct Downtown Detroit Days, repurposed to support businesses across the entire city.  Support this with an aggressive marketing campaign using traditional and non-traditional marketing efforts.

Provide Marketing Support/Toolkits:  Build a strategic marketing plan, including a tool kit businesses can leverage.  Many have limited budgets and are not focused on effectively marketing their business services.

Community Engagement:  Launch a Business Advisory Council with city officials focused on program development, listening and learning.  This Council will also be focused on providing policy input focused on business recovery and sustainability.

Policy Development/Review/Input:  There’s an opportunity to review policies and update to incorporate enhanced support for small businesses, reducing “red tape” and encouraging small business lending and resources, when and where appropriate.

Focusing on business recovery is critical and these steps are essential in supporting entrepreneurship during times of crisis.

Now, is the time to step up and provide additional resources focused on small business recovery and sustainability.

Editor’s Note: Mark S. Lee is the founder of the  LEE Group, which will host its Sixth Annual Small Business Workshop online beginning Wednesday, 6/17.  Participation is free, but registration is required. Interested participants can register here.