- Ashlie Ordonez is one in every of many feminine enterprise homeowners who take care of younger youngsters.
- A brand new report highlighted how girls like Ordonez had been affected by the pandemic.
- Experts and feminine enterprise homeowners with children say the federal government wants to increase advantages consciousness.
- Visit the Business part of Insider for extra tales.
Right earlier than Christmas, Ashlie Ordonez offered her wedding ceremony ring. The mom of 5 hoped the $12,000 would preserve her enterprise afloat for a bit longer, regardless of what it price her emotionally.
“I came from a trailer park, and I had a $12,000 ring on my hand,” Ordonez, who owns the spa Bare Bar in Denver, stated. Since she launched the enterprise in 2020, she does not qualify for Paycheck Protection Program loans.
Ordonez is one in every of tens of millions of girls who personal a enterprise and take care of younger youngsters, a balancing act that was made much more troublesome by the pandemic. A brand new report from the National Association of Women Business Owners and the human-resource-software maker Gusto — which surveyed 1,199 feminine entrepreneurs in the US about their experiences in the course of the pandemic — discovered 31% of feminine enterprise homeowners in the ballot had school-age youngsters at house.
Sixty-one p.c of such homeowners reported that college closures affected their corporations, and 30% stated they’d to reduce on work due to childcare wants. Ordonez’s mother helps take care of her youngsters, and her husband nonetheless works, so that they funnel no matter leftover cash they’ve again into the enterprise. But it is nonetheless not sufficient: She arrange a fundraising marketing campaign to preserve Bare Bar going.
Overall, female-owned companies and corporations run by folks of coloration fared worse in the pandemic. Between February and April final 12 months, the variety of female-owned companies fell by 25%, whereas Black-owned corporations dropped by 41% and Latinx companies skilled a 32% drop, in accordance to the National Bureau of Economic Research.
On April 28, President Joe Biden unveiled his infrastructure plan that features proposals for childcare funding, common pre-Okay, and $225 billion over a decade to create a paid medical and household depart program. The latter goals to cut back racial disparities in wage loss and enhance worker retention.
Female enterprise homeowners with youngsters, like Ordonez, together with specialists say the federal government wants to increase consciousness about advantages and supply higher assist for these communities.
The authorities wants to supply extra monetary assist for feminine enterprise homeowners with youngsters
Female enterprise homeowners want higher entry to authorities assist and financing, stated Luke Pardue, an economist at Gusto who focuses on how public insurance policies might help small companies. Of the ladies with school-age youngsters in the Gusto survey, 59% reported receiving PPP loans, in contrast with estimates that 72% of the broader inhabitants acquired PPP loans.
“Relative to the shock they’ve endured, we would expect” that quantity to be larger, Pardue stated, including: “It’s very concerning that these women haven’t been able to access the aid and support programs that the government has introduced.”
Lawmakers want to focus extra assist on microbusinesses and sole proprietors
The Small Business Administration defines a small enterprise as using fewer than 500 folks, however Cristina Morales Heaney, the chair of the National Association of Women Business Owners, stated the federal government wanted to take a better look.
“We really need our lawmakers to look at the definition of a small business,” stated Heaney, who additionally owns US Safety Services, a San Antonio medical-services and staffing firm. A majority of the National Association of Women Business Owners members are sole proprietors or have between 10 and 20 staff, she added. “These small businesses’ needs and access to capital are very different and there needs to be parity.”
One of the main criticisms of final 12 months’s PPP was that funds did not go to microbusinesses or sole proprietors, who had been additionally struggling in the course of the pandemic. In response, Biden included extra assist for these corporations as a part of his $1.9 trillion aid plan.
“It’s crazy how these microbusinesses have just fallen on the back burner and we’re not recognized,” stated Ordonez, who considers herself the proprietor of a microbusiness and shares Heaney’s sentiment.
A tax credit score for paid depart handed by the Trump administration went unnoticed and unused
Only 26% of entrepreneurs from the survey reported making claims by way of the Families First Coronavirus Response Act. That is a direct results of a lack of understanding, Pardue stated.
The legislation, signed by President Donald Trump final March, requires corporations with fewer than 500 staff to present restricted paid-leave advantages to employees who’re affected by the pandemic. Additionally, smaller employers are given a brand new tax credit score and federal payroll-tax aid to pay for the advantages.
“This was essentially free money provided to small businesses, but there was very low take-up,” Pardue stated, including that survey respondents reported not being conscious of this system or how to declare the advantages. “While the program is laudable, it needs to be simplified, and awareness needs to be increased.”
Female enterprise homeowners can discover assist elsewhere, however that assist goes solely thus far
For those that don’t desire to wait on lawmakers, there are extra grassroots choices. Female enterprise homeowners with youngsters ought to begin by discovering a neighborhood the place they will discuss to folks in the same state of affairs, stated Jill Salzman, the creator of the neighborhood for mom entrepreneurs known as Founding Moms.
While it could not really feel like they’re taking motion, it may present assist and camaraderie, Salzman added.
Lastly, attain out to your native chamber of commerce or enterprise neighborhood and ask if there is a assist system in place for what you want, “whether that’s your own emotional well-being, childcare, or whatever the thing is that you need,” Salzman stated.