Small businesses struggle to find cash reserves

Small businesses struggle to find cash reserves

Sep 08, 2021

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44% percent of small businesses in the US now face a shortage of cash reserves as many have less than three months of cash. This leaves them in a  vulnerable state of another shutdown due to financial emergencies and the pandemic. The survey conducted by Goldman Sachs shows that an even greater 51% of Black-owned businesses face a shortage of cash reserves with less than three months' worth. 

These numbers present the ongoing pressure and struggle of small businesses to continue operations amidst the pandemic. As more customers got vaccinated, there was a rebound in sales but conditions have worsened for small businesses yet again. The survey also highlights the rocky recovery for many Americans and the challenges faced by minority-owned businesses during the pandemic. National Director of Goldman Sachs Joe Wall said that it has been an uneven recovery for Black business owners and that they have consistently lagged over the last 16-17 months.

Source: CBS News

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