by Mike Fang
Chief Executive, Pacific Northwest, U.S. Small Business Administration
SBA Regional Administrator Mike Fong (right) and Alex Liu (left) talk about their business and seeking venture capital funding for research and development at Greenway DNA, Inc. in Portland. (Photo courtesy of Mike Fong)
For many entrepreneurs and small business owners from the Asian American, Native Hawaiian and Pacific Islander (AANHPI) community, the impact of COVID has been devastating. A nationwide study by the Federal Reserve Bank of New York released last March found that among older small business owners (45+) across the country, 90% of Asian businesses reported a year-over-year decrease in revenue — the highest rate compared to whites (77%) , Black (85%) and Hispanic (81%) owned companies.
Meanwhile, hate crimes and racism against the AANHPI community have increased since the pandemic took its toll on this week’s commemoration of the one-year anniversary of the Atlanta Springs shooting. The Pew Research Center found in October that one-third of Asian-Americans surveyed remained afraid of being attacked, noting that anti-Asian hate in the largest U.S. cities from the first quarter of 2020 to 2021 Crime soared 164%.
The confluence of economic catastrophe and racial bias has made AANHPI’s small business recovery from the pandemic particularly difficult and challenging.
AANHPI-owned businesses represent a large and growing footprint in Washington State. Asian Americans own more than 58,000 of our businesses.
Native Hawaiians and Pacific Islanders represent another nearly 1,800 entrepreneurs. Combined, AANHPI-owned businesses account for nearly half of all minority businesses and nearly 10% of all businesses in our state. Additionally, from 2010 to 2019, the AANHPI population increased by 382,000 people. This was the fourth-largest state increase in the nation.
The Biden-Harris Administration is committed to promoting equity and opportunity for the AANHPI community across the country, and the U.S. Small Business Administration (SBA) can play a critical role in the economic recovery and resiliency of our nation’s small businesses, especially formerly underserved entrepreneurs . Our financing vehicles are designed to provide working capital for those who may not be able to obtain traditional loans from commercial banks. Our network of resource partners provides free consulting services and technical assistance to small businesses with a variety of needs. But perhaps the biggest opportunity lies in government contracting. Over the past three years, the federal government has contracted more than $41 billion in goods and services from businesses in Washington state. But less than 1% of those dollars went to companies owned by AANHPI.
As troubling as this large gap is, I see this as a huge opportunity to certify, educate, and build capacity for more disadvantaged small businesses to compete and earn federal contracts. The federal government is the world’s largest buyer of goods and services. This can include everything from office supplies to construction to dining, and in many cases, for example, there are statutory reservation requirements for small, minority and women-owned businesses.
A meaningful and effective recovery from the pandemic will require focus and intention. That’s why I’m launching an AANHPI Recovery Outreach Program in Washington State to raise awareness of the SBA program and the services our resource partners provide. Last week my team and I held a roundtable discussion with AANHPI small business owners in Bellevue. What struck me was how strong and palpable the energy, creativity and entrepreneurial spirit in the room was. But what is also revealed is how limited awareness of the SBA’s programs and resources is. We plan to host similar roundtable conversations and visits with AANHPI and other national chambers of commerce across the state. Our goal is to use these conversations to reach as many small business owners and potential entrepreneurs as possible to accelerate recovery, spur innovation, and provide access to new markets and revenue-generating opportunities.
If you or your organization would like to learn more about our program or are interested in meeting with our local SBA team, please contact me. Our Pacific Northwest Regional Office in Seattle can be reached at 206-553-5231. We will work together to ensure a fair recovery for the AANHPI community in Washington State.
Follow our office on Twitter: @SBAPacificNW
