What pandemic recovery looks like for local businesses

With ever-changing safety regulations and worker concerns, small businesses have had to become more flexible than ever in the midst of COVID-19. Their adaptability has been key to their survival.

"The uncertainty when it comes to the small businesses in our region is what we are all experiencing in the economy. We don't know what's going to come tomorrow when it comes to this pandemic, or how that will impact inflation and all the economic issues that we are encountering as a nation right now," said Akofa Dossou, Charlotte Regional Business Alliance principal economic researcher.

The landscape is complex. According to the North Carolina Secretary of State's Office, the state saw record numbers of businesses opened in 2020, at the same time that significant numbers closed their doors for good — and many others that remained open found themselves in crisis.

It is clear the current challenges for small businesses vary considerably.

"Supply chain disruptions continue to affect many manufacturers, wholesalers and retailers," said Gregory Brown, UNC-Chapel Hill finance professor and executive director of the Kenan Institute of Private Enterprise. "Lack of labor affects some industries, especially some requiring specialized skills where there's more to attracting and retaining employees than just having to pay higher wages. Some businesses continue to experience depressed demand because of the pandemic."

Brown serves on the Carolina Engagement Council, which is an advisory committee for Carolina Across 100. Data from the survey underscores this point.

Twenty percent of respondents indicated that disruptions to operations, supply chains and related services are the biggest challenges facing their organizations. Nearly 40 percent reported that staffing issues, such as burnout, early retirements and disruptions due to COVID illness or care responsibilities, are the most challenging.

On the other hand, the consulting firm Mckinsey suggests that three critical sectors — manufacturing, retail and restaurants — will need support in making significant changes in business and operating models.

"The campus has substantial experience providing technical assistance to small businesses and communities to help them work through specific challenges they face," said Brown.

He points to the work of NCGrowth, which has served as a consultant to small businesses across the state including those in rural communities. The University-wide initiative will pull from such expertise across the campus to help build collective responses to small business issues communities are facing across the state.

Another challenge for small businesses, especially minority-owned businesses, is a lack of knowledge about existing resources, said Dossou. The University can potentially play a role in helping identify and promote those opportunities.

Access to technology, which enabled some businesses to more easily transition to remote work during the pandemic is another challenge. In the Carolina Across 100 survey, respondents frequently raised this as a concern.

One survey respondent from Hertford County stated that "[T]he lack of broadband service has shown itself to be the biggest challenge for rural citizens, especially during the pandemic."

While small business owners have been resilient, programs that help them recover from the economic effects of the pandemic are essential. UNC-led teams will offer data, facilitation, coaching and program design to help communities make decisions to further the health and success of their small businesses.