Will API Small Businesses Survive in Post-COVID Era?

A handful of entrepreneurial individuals in Kansas have found success in starting businesses during the pandemic by leveraging customer needs and pandemic relief funding. Although this business plan isn't "foolproof," in Kansas and nationwide, the number of entrepreneurs who filed applications increased significantly compared to previous periods.

Facing the economic strain from the financial fallout caused by the coronavirus crisis, Tenino is printing its own money like it once did in the wake of the Great Depression. The small town in Washington has issued at least $2,500 worth of wooden bills to exclusively be used for small businesses on Main Street. Thirteen residents have applied for the funds and $150 have been spent by residents on necessities as of June. Other small towns across the country have already sent inquiries to the mayor of Tenino, seeking to imitate Tenino's effort.

Since the COVID-19 pandemic, small businesses in Texas are struggling to stay afloat. A university-sponsored crash course might help struggling businesses find solutions catered to their community. Fifty-eight communities participated in the Regional XLR8 program sponsored by the IC institute at the University of Texas at Austin. The “secret sauce” for innovation the institute has used for decades involves getting people to work with one another as opposed to working separately.

For 50p a month, businesses can be part of the Wight Gift Card scheme which offers £50 gift cards to spend in participating shops. Residents purchase the gift cards to support local businesses and the data shows that for every £50 gift card, people actually spend £82.50. Similar gift card schemes have successfully helped businesses in other cities withstand COVID-19 pandemic shutdowns. Initial data show that the Wight program has increased purchases at local businesses.

The 8th Street Collective, a loose organization of Oakland food industry workers, and Oakland Bloom, a group that supports refugee and immigrant chefs, opened a new restaurant, bar, and community hub space. A team of four worker-leaders rotates operational roles of Understory, the restaurant, and are working with lawyers to become cooperatively owned. The restaurant serves a pop-up-style rotating menu four days a week, including dishes by Oakland Bloom chefs and the other days are dedicated to the nonprofit’s incubator and training program called Open Test Kitchen, as well as other programming.

Firebrand Artisan Breads hires people with high barriers to employment, such as people experiencing homelessness or who were formerly incarcerated. The higher-than-minimum-wage starting salary, paid time off, and insurance benefits provide sustainable and secure employment to people whose life circumstances make it harder to get a job. In order to raise capital while maintaining their employment model, the owner worked with lawyers to become a perpetual purpose trust, an alternative ownership model that allows the company to sell shares to private investors while ensuring their principles remain in place.

A community currency was introduced to boost the local economy in the Berkshires region of Massachusetts. $133,000 worth of BerkShares, as the currency is known, are in circulation and accepted by small businesses in town. The concept arose from the desire to support “a strong commitment to speak with buying choices.”

In Costa Rica, the Guanacaste Chamber of Fishermen, known as CPG launched an initiative to help local fisherman making a living during the pandemic. Most of them sold their product to hotels, but due to the pandemic, 140 hotels closed. The initiative, known as Arroz y Frijoles has helped. CPG buys fish from the fishers, then sell it at the farmers’ markets. ““Fortunately, sales have been constant, we’re getting out a few fishes, around 30 to 100 kilos per night.”

CNote has provided a source of funding for federally certified Community Development Financial Institutions by pooling cash from foundations, bigger banks, philanthropists, and donor-advised funds to counter the lack of available cash flow experienced by CDFIs, which are lenders but not banks. Federal COVID-19 funding set aside $30 billion specifically for CDFIs that overwhelmingly lend to women- and minority-owned businesses, which face persistent racial and gender biases and are unable to successfully tap into lending and grants such as the Paycheck Protection Program through traditional lenders.

A combination of agencies, charities, and business owners have been working toward the goal of rebuilding Syrian cities by focusing on souks, or markets, dating back centuries. Bringing the souks back to life was a relatively easy reconstruction project, free of legal complications, and vital to the communities' return to normalcy. Sticklers for historical accuracy argue that the original medieval architecture of the souks is impossible to recreate, therefore rendering it "totally fake," but those who are more concerned with repatriating refugees and rebuilding war-town Syria disagree.