There are more than 33 million small businesses in the United States, according to the U.S. Small Business Administration. These small businesses combined employ more than 60 million people — nearly half of all private sector employees, accounting for almost 40% of private sector payroll.

So to say small businesses are a big deal would be a massive understatement. However, a proposal by the Federal Reserve Board requiring mostly large and regional banks to increase the amount of capital they hold by an estimated 20% could lead to increased costs for small business owners.

As URL Media partner Black Voice News reports, the proposal comes at a time when nearly 80% of all small business owners are concerned about their ability to access funding, with more than half saying they can’t afford to take out a business loan due to high interest rates. What’s most concerning is that more than one in five small businesses say they plan to close if the credit market continues on this trajectory.

“Small business owners are the backbone of our economies, but the ongoing credit crunch means that capital to fund expansion plans, reinvest in our companies or hire more workers is unaffordable and inaccessible,” said Allison Dunn, owner of Hibiscus Brew based in Brooklyn, in a press release from Goldman Sachs 10,000 Small Businesses Voices. “Now, even after 11 interest rate hikes since March 2022, the Federal Reserve is pushing a new regulation, which could make loans more expensive and more difficult to obtain.”

While the credit market isn’t looking good for small businesses, a new report led by URL Media partner Epicenter-NYC shows how community events like the Queens Night Market act as incubators and on-ramps for entrepreneurs and business owners.

“For a restaurant, you need a lot of capital and you need to invest a lot of money into, initially, even signing a lease with lawyer fees and landlord agreements and all these things — but with the [Queens] Night Market, it wasn’t like that, it was very personal,” Hana Saber Tehra, founder of Persian Eats, told Epicenter-NYC.

The report found that 62% of newly launched businesses surveyed at the markets said they had plans to expand, with 27% reporting they had already opened up their business at another location. Additionally, it found that customers really value being able to experience small businesses in-person, especially if that business is providing a unique good or service or launched virtually.


Those operating the night markets say they’re hopeful these events will not only lead to an increase in independently-owned local businesses in their community, but also increased civic engagement, decreased xenophobia and more awareness to the needs of specific communities.

“We’re always looking at how we can bring greater awareness to communities and also the needs,” Amy Chin, Think!Chinatown founder, told Epicenter-NYC

And, just in case you need one more reason to buy from small businesses, a study by American Express found that the majority of money spent at small businesses stays in the local community. The study also found that every dollar spent generates an additional $0.48 in local business activity. — Alicia Ramirez

Uplift. Respect. Love.

Alicia Ramirez authors URL Media's Friday newsletter and pens our Saturday newsletter, The Intersection. She is also founder of The Riverside Record, a community-first, nonprofit digital newsroom serving people living and working in Riverside County, California.