South Asian Small Businesses in Little Bangladesh Face Challenges and Seek Support

Following up on its earlier report on the status of South Asian small businesses in Little India in Artesia, South Asian Network produced another market research report on the status of small businesses in Little Bangladesh. The purpose of these reports is to lift up the challenges and opportunities for our community’s small businesses. It also calls on the area banks, community developing funding institutions, policy makers and the municipal governments to allocate appropriate resources to help small businesses thrive.

We invite business owners/operators and entrepreneurs to take a look at these reports and also engage with SAN to share their perspectives. SAN’s staff will also be happy to help our community businesses to access capital, develop business plans and provide any technical support to seek loans/grants, etc.

Key Findings:

• Diverse Demographics: The majority of small business owners in Little Bangladesh are of Bangladeshi ethnicity (88%), with a mix of Indian, Iranian, Latinx, and Nepali owners as well.
• Economic Struggles: A significant portion of these businesses, many of which are sole proprietorships or family-owned, struggle with cash flow and increasing revenue without incurring debt. High-interest rates and burdensome loan requirements are major obstacles to securing financial support.
• Language Barriers: The report reveals that 92% of business owners prefer to conduct business in Bangla, highlighting the need for in-language support and resources.
• Community Support Needs: Business owners express a strong desire for increased access to financial resources and assistance with financial planning. Many seek loans for business expansion, but face difficulties due to high interest rates and stringent loan requirements.

SAN’s Recommendations:

• Community Reinvestment: The report recommends investing in community development initiatives, such as the South Asian Small Business Program (SABZ), to provide ongoing support to economically disadvantaged South Asian small businesses in Little Bangladesh.
• Language Access: It also suggests enhancing language access by providing in-language resources on financial planning, business management, and accessing capital, which are essential for these small business owners to thrive.

The South Asian small business community in Little Bangladesh is vital to the local economy and cultural fabric of Los Angeles. However, without targeted support and resources, these businesses may continue to face financial instability. SAN’s SABZ program represents a crucial step towards addressing these needs and ensuring the long-term success of South Asian small businesses in the area.

To address the challenges listed above, South Asian Network is launching a South Asian specific Small Business Support Program (SABZ), that will provide access to capital, technical assistance, and business training specifically tailored to small businesses & entrepreneurs and help them sustain and grow their ventures.