Small businesses are the lifeblood of the United States economy and a catalyst for economic growth. They drive innovation, create jobs and provide goods and services to local communities. Data released by the Small Business Administration (Office of Advocacy) in April 2019 show small businesses added 1.8 million net new jobs and employed 47.3% of the private workforce. The main industries are healthcare, accommodation and food and retail.
It’s no secret that small businesses have been among the most severely affected by the COVID-19 pandemic. In late March/early April, a survey by Main Street America projected the closure of 7.5 million small businesses, if the effects of COVID-19 continued unabated. A more recent study by researchers at the University of Illinois, Harvard Business School, Harvard University and the University of Chicago suggest that 2% of small businesses are no longer operational (more than 100,000 small businesses).
As states begin roll outs of strategies to slowly re-open the economy, it’s important to understand the intricacies involved in trying to balance mitigating the casualties the pandemic has inflicted on both the healthcare and economic sectors. While stay at home orders have had success in flattening the curve and providing much needed relief to our healthcare sector, the positive effects hoped for with the initiation of the CARES ACT, remains to be seen in the economic one.
On March 27th, the $2 Trillion relief package was signed, providing up to $349 billion in forgivable loans to small businesses as part of the paycheck protection program. To say there have been hiccups in administering the funds is an understatement. Additionally, “Shark Tank” investor Kevin O’Leary contends 20% of small businesses that availed of PPP loans won’t survive.
With so much uncertainty surrounding the economy and the fate of small business, I decided to put together a series of interviews with a few local New Jersey owner-operated businesses to see how they were faring. My objective is to give my readers a live look at what local businesses are going through, give hope to other business owners and future entrepreneurs and most importantly drive support towards these businesses that desperately need our help.
Interview:
The Order
A Goan influenced brunch cafe located in South Orange, owned and operated by the Pinto Family.
IG: @theorder_nj
Q1: What is your business and when did you open?
Sheldon (Co-Owner): Growing up with a family of foodies that loved entertaining friends and family, my father, Ronald, older sister, Samantha, and myself decided to open up "The Order" an upscale bistro located in South Orange in September 2019. We wanted to create a space of welcoming and comfort as our guest divulges in our home-cooked meals in our dining room and enjoys a cup of coffee at our Coffee bar.
Q2: How has Covid-19 effected your business?
Ronald (Co-Owner): After a solid 2019 4th quarter (our first quarter as we started in September), we were really excited for 2020. We began to form strong relationships in the community and our following began to grow. We had steady growth in January and again in February, and were in the process of planning our spring/summer menu and coordinating logistics for our outside seating area when the Coronavirus hit. As a result, our sales took a massive hit.
Q3: Have you applied for/received any help from SBA grants or loans?
Ronald: Yes, we applied and received aid from the PPP program, initiated under the Coronavirus Aid Relief and Economic Security (CARES) Act. In addition, we applied for the EIDL from Small Business Administration but only received the advance. While we are grateful for the support, the financial assistance received thus far are insufficient given the negative financial impact of the Covid-19 – it's been 9 weeks since the Governor ordered the lockdown.
Q4: What are you doing to adapt your business in order to survive and grow beyond 2020?
Samantha (Co-Owner): Since “The Order” café is relatively new to the community, our partnership with FLAG, Front-Line Appreciation Group of South Orange and Maplewood, gave us an opportunity to give back to the community during these unprecedented times. We provided discounted but highly nutritious and quality meals to Newark Beth Israel Hospital staff.
In addition, we realized that many of our customers were facing economic hardships, so my father, Sheldon, and myself decided to offer discounted family meals, which are served in portions for two and four.
Beyond Covid-19. As we continue to stay positive and remain hopeful, we know that when we open our doors again, our business strategy must adjust in order for us to sustain operations taking into account that the restaurants will have to operate on reduced capacity to encourage social distancing for sometime until there is cure or an vaccination for the virus causing the Covid-19. We have gone back to the drawing boards, like before we created, “The Order.” We are excited for the exciting changes that will take place. Stay tuned!
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