Qingjian (Q.J) Shi, director of ABEC PHOTO: GREATER BOSTON CHAMBER OF COMMERCE
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Asian American and Pacific Islander (AAPI) businesses in Massachusetts face unique challenges and opportunities, as highlighted in the recent report by the Asian Business Empowerment Council (ABEC) at the Asian Community Fund and The Boston Foundation. Despite AAPI businesses being the fastest-growing sector in Massachusetts, these businesses often encounter significant obstacles, ranging from exclusionary policies to hate-based violence.
One key finding from “Setting Roots in Rocky Soil: The State of AAPI-Owned Businesses in Massachusetts” is the dramatic growth of AAPI-owned businesses over the past two decades, increasing by 187%. These businesses contribute more than $3.9 billion in payroll to the state’s economy and make up over 10% of “Main Street” businesses — those small enterprises that bring goods, services and cultural vibrancy to neighborhoods. Despite this significant growth and robust contributions to the state’s economy, AAPI-owned businesses have vulnerabilities and still face significant challenges.
The COVID-19 pandemic starkly exposed some of the vulnerabilities of AAPI businesses. Many faced a severe loss of customers due to increased anti-Asian sentiment and insufficient support networks. They also struggled to access relief funds. According to the report, AAPI businesses were often misunderstood and under-supported, exacerbating their difficulties during the pandemic. Moreover, the report revealed a significant reliance on personal savings or informal networks for capital, with two-thirds of AAPI business owners expressing a need for better access to external funding. This indicates a critical gap in financial support and resources, which hampers their growth and sustainability.
Language barriers and a lack of trust in financial institutions further complicate the…
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