Worcester Business Journal

8 Worcester Business Journal | June 22, 2020 | wbjournal.com owners were already facing. Black-owned businesses have been hit especially hard by the economic toll of the coronavirus pandemic. A report in May by a research institute at Stanford University estimated 41% of U.S. black-owned businesses were closed – temporarily or permanently wasn't specified – by the outbreak, the most of any race or ethnicity. e reason was largely due to the industries where black business owners are most likely to be found. Black-owned businesses are most likely to be in health care and social assistance, followed by transportation, warehousing, and administrative, support and other services, according to the U.S. Census Bureau. Black-owned businesses have been found to be less likely to receive federal financial help in the Paycheck Protection Program. A survey in late April by the New York City investment firm Goldman Sachs found black-owned businesses were less likely to apply for PPP loans than small businesses in total (79% compared to 91%) and less likely to receive funds (40% versus 52%). Black business owners indicated their personal finances have been more greatly hit and they have less cash reserves on hand. e bleak outlook is becoming harmful to health, too, according to the American Psychological Association, which cited what it called a heavy psychological toll. Racism, it said in May, has become its own pandemic and is associated with a range of psychological consequences, including depression, anxiety and post-traumatic stress disorder. Providing opportunities Increasing the number of black business owners and executives starts early in the pipeline, with education. Reed, of Shi-Shi's Lounge, works through the Worcester Women's Leadership Conference to help offer scholarships and through Worcester Technical High School to provide mentorships. Worcester State is working to help companies overcome implicit bias or lack of cultural competency through its Center for Business and Industry. Another program, called the Teacher Pipeline, aims at diversifying the makeup of teachers in local school systems. e college has its own prioritized recruitment and professional development programs, Luster said, including when WSU President Barry Maloney recommended she attend a development program for aspiring college presidents, so she could eventually reach that level. at work has gone on at Worcester State for years, Luster said. "It'll never be finished," she said. "It's a fabric of our institution." Black business leaders in Central Massachusetts aren't always sure exactly what their role – or of their white counterparts – should be during a national race crisis following George Floyd's death, but they agree businesses can have an impact between their hiring practices and their platform. Reed put out that question – "What do we do?" – to colleagues online and didn't get much of a response. "I think people don't know," she said. Reed, who serves on the board of the Worcester Regional Chamber of Commerce, struggled with it herself. "I'm not one for protesting," she said, weighing the idea of a Black Lives Matter sign outside her store. "I'm more worried about what the repercussions would be." A time to speak up Kola Akindele, UMass Medical School's assistant vice chancellor for city and community relations and a black professional, addressed any dilemma he'd face in being an outspoken black voice in business. He called on businesses to not only offer opportunities for discussion but review hiring practices and where they invest their money. "I don't really speak out on that many issues, but the way in which the medical school has responded during this crisis would make me courageous enough to speak out and what I want to say," Akindele said. Brady, with more than 500 employees at the Family Health Center, believes executives' duties today are broader than simply focusing on the bottom line. Now, he said, it includes a consideration of society and oen includes taking a stand on societal issues. e Family Health Center, which treats a diverse population that is typically lower-income, was one of a series of health centers holding rallies in Eurayshia Williams Reed, the owner of Shi-Shi's Lounge in Worcester Kola Akindele, the assistant vice chancellor for city and community relations at UMass Medical School in Worcester PHOTO/GRANT WELKER Black-owned businesses employee county and payroll Employer firms owned by black professionals have fewer employees and payroll than average. Notes: Residents' race are those who identified as black or African American only, not those identifying as two or more races. Businesses identified the U.S. Census Annual Business Survey are only those who have employees, not just the owner, and don't include subsidiaries. Source: U.S. Census Bureau Black-owned Worcester city businesses All Worcester city businesses Black-owned Worcester County businesses All Worcester County businesses Employer firms 48 3,421 122 14,837 Combined employees 1,131 95,565 1,970 310,340 Combined payroll $28 million $4.5 billion $52 million $15 billion

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