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Coronavirus: Why California small businesses might not survive

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Coronavirus: Why California small businesses might not survive

Whatever the medical benefits that come from prolonged coronavirus locking, the California small business community will suffer severe symptoms, possibly over the next few decades. Small-scale state entrepreneurs, especially in poorer areas, faced large adjustments and possibly annihilation, an increasingly complicated situation for some people with damage stemming from protests over George Floyd’s murder.

These small companies were in a parlous condition before COVID-19. Apart from the extraordinary wealth generated in Silicon Valley and among real estate speculators and entertainment elites, much of the country’s growth in recent years has been in the lower-class service business. As a result, 80% of all jobs created in the state over the past decade have been paid less than the average state income and half of them are well below $ 40,000, according to Marshall Toplansky, a researcher at Chapman University.

California COVID-19 mortality rate is much lower than in the Northeast countries, but our two-pronged economy is very vulnerable to a decline in the service business, and especially in the hotel, retail and restaurant sectors. About 90% of the businesses surveyed this month by BizFed, the Los Angeles County business group organization, have been severely affected and nearly half have experienced a revenue drop of more than 50%.

Before the pandemic, California’s drivers and leaders could convince themselves that the state had developed a new economic model that was progressive and sustainable. COVID-19 and the economic downturn have wiped out fancy facades, like our unemployment rate now beyond the national average, even worse from New York, a U.S. coronavirus outbreak center This is very bad in Los Angeles, where less than half the population now has jobs. L. County has lost 1 million jobs pandemic and suffer from higher unemployment rates than one of California’s main urban areas.

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Southern California greater economic vulnerability reflecting, in part, its unusual exposure to some of the hardest hit industries, especially tourism and hospitality and international trade. But economic damage caused by locking up for more than two months spread to industries that depend on selling goods outside the region – such as clothing and medical equipment – and the entertainment industry, which according to recent estimates may have lost more than 100,000 jobs.

If consumers are slow to continue their pre-coronavirus activities, many small companies that have struggled with state business regulations and high taxes may be tempted to go elsewhere. Joseph Vranich, a relocation expert who recently moved his own business from Irvine to Pittsburgh, has identified 2,183 publicly reported California investment release events between 2008 and 2016. However, experts in site selection generally agree that at least five relocations were carried out without public knowledge for any who don’t.

The places with the biggest advantages of California are in Texas, Nevada, and Arizona. Between 2000 and 2013, California was a source of surroundings one fifth of all work who moved to Texas – 51,000 jobs.

Perhaps the most directly threatened, however, are small businesses that are mostly focused on serving the local population. Take a restaurant. Most of the more than 90,000 restaurants in the state are owned and operated by independent owners, who employ 1.4 million food service workers, according to California Restaurant Assn. This generates more sales tax ($ 7 billion per year) than any other industry and about 60% is owned by people of color. Unless the country finds a way to help, 20% to 30% of these restaurants will never open again, the association has estimated.

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Like a small business country, many of these companies have not been able to access federal funds to withstand the decline. Washington’s bailout program, even some Republican economists admitted, had been tilted for the sake of Wall Street and large companies. Especially excluded, note local advocates, smaller, often immigrant-run businesses that do not have strong bank relations. They also often lack savings and most of their business is money-based. Others are owned and operated by non-citizens, some of whom are undocumented people.

In many neighborhoods, there is widespread concern that local owners of small shops, apartment buildings and commercial properties will not be able to survive and will be taken over by outside investors without ties to the area. The need for a social distance protocol has worked against small shops that rely heavily on personal contact with customers and cannot make all of their income through online sales. Some already see this trend as an acceleration of gentrification that occurred before coronavirus.

“Business owners are afraid,” advises Mirabel Garcia, who works on micro-loans for East L.A.-based. Inclusive Action for Cities. “They worry they won’t be able to stand against Wall Street and big investors.”

California will emerge from this crisis, but what is the state like? The power of technological oligarchs – the biggest winners during the coronavirus crisis – is likely to advance their hegemony. But the reality for most in the business sector will be far greater: empty stores, ruined dreams, default mortgage and fewer opportunities for the type of entrepreneur who created California’s economic dynamism.

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In this economic crisis, the state government needs to pay attention to the interests of grassroots entrepreneurs. This includes helping small companies adjust to new social distance requirements and providing technical assistance so they can compete more with megastores or Amazon. It also means protecting small business owners lawsuits related to coronavirus claims. Actions such as the California 5th Assembly Session, which seeks to severely limit contract work, must at least be postponed at the time of the unemployment record.

Given California’s budget problems that are getting deeper, rooted big state expense and retired, state Not capable to support a lonely business and millions of unemployed workers. There is only so much that can be done to curb the “creative destruction” caused by the pandemic.

But the entrepreneur, if nothing else, is tough. If they are given enough help to survive, they will eventually adjust to new realities, and find new ways to develop for the benefit of all Californians.

“It breaks my heart to see all the empty stores,” said Vivian Bowers, who runs her family dry-cleaning business, which has been in South Los Angeles for 63 years. “But entrepreneurs are tough. In this business we have survived recessions and two riots. Give people a chance and they can come back. “

Joel Kotkin is a Fellow of Urban Futures at Chapman University and executive director of the Urban Reform Institute. He is the author of “The Coming of Neo-Feudalism.” @joelkotkin

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VARIOUS. Portuguese project that wears a shirt for mental health

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VARIOUS.  Portuguese project that wears a shirt for mental health

Little phrases with big meaning sometimes fit into T-shirtright now in bag da Ivory, a project that began in the year of the pandemic and has been interventionally warning about mental health issues ever since.

Francisco Soares Ganzo, the founder, first suffered a panic attack when he was in 10th grade, but ended up not paying much attention to signs that something was wrong. Then the mental health problem reappeared later, at a different stage in life and with different symptoms.

“Four years ago, I started experiencing constant anxiety, to the point that I couldn’t sleep,” says 25-year-old Francisco Versa. “Basically, I put a lot of pressure on myself from the women with whom I had relationships. It was Wednesday masculinity, competition,” he continues.

Early adulthood began with this “almost obsession to be with women” and get the best. performanceto the point where he became very anxious whenever he had sexual relations with a woman.

“The peak was when I couldn’t sleep. My brain was always on and I started taking pills to help me sleep,” says Francisco.

In 2019, he decided to see a therapist rather than a psychologist because he thought it was only “for wimps”, but it wasn’t, and Francisco later figured it out.

Today, he wants to convey the same message, and to do so, he created the Ivory project in 2020, consisting of clothes and accessories with special messages that form a bridge to the necessary incentive for those in need of help.

“When I finally worked up the courage to ask for help, I was like, ‘Wow, I wish I had started sooner. That’s why I started this project. I lacked something that would motivate me to go to therapy earlier. clothes are meant to spread information,” he says.

But Ivory goes far beyond what is written in sweatshirts and accessories.

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Help that comes in order

“Everyone you know is fighting a battle you know nothing about.”

This is one of the messages recorded in t-shirts e sweats from ivory. It’s simple and affects everyone in their own way, but the focus of the Ivory team – also with a past or present marked by mental health issues – is not the phrases on the T-shirts, but what follows them.

“To say that mental health is talked about a lot is a lie. What I mean? When I hear the news that companies are very concerned about mental health or that it has become fashionable with COVID-19, it is all a lie. What people say is vague. Nobody tells stories. A person who is really bad, like I was, does not need to hear that he should go to the gym or eat well. He needs to hear a story like this.” .

Ivory’s next step is to create a space for sharing testimonies through Appendixjust to address this shortcoming. Until then, the project intends to function as anxiety And further to support in the field of mental health.

“For every order we have, a person receives Email mail to make an appointment. Because our goal is to really open doors, to do something that I didn’t have, ”says Francisco. “I feel like a lot of people buy ivory because they’re in bad condition, but they don’t want to take the next step to take care of themselves.”

If encouragement is not enough, an ivory sweater will be cozy and Email mail gives you the push you need to make an appointment with one of Ivory’s psychologists. All it takes is an Instagram post or an email.

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Sweaters and bags 100% organic cotton and mobile phone cases with phrases coined by Francisco Soares Ganzo and designs created by the whole team can be ordered at website.

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Portuguese government creates support lines for travel companies

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Portuguese government creates support lines for travel companies

From the newsroom with Lusa

Secretary of State for Tourism, Trade and Services Nuno Fazenda announced on the 8th in the Azores two lines of support for companies with a global allocation of 100 million euros, measures that he believes meet the requirements of the sector.

“The Government will provide in the first days of January a new line – Consolidate + Tourism Line, with an allocation of 30 million euros, managed by Turismo de Portugal and dedicated to micro and small companies in the sector, which have difficulties in managing debts that have arisen, in particular, during pandemic,” he said.

The official spoke at the opening ceremony of the 47th National Congress of the Portuguese Association of Travel and Travel Agencies (APAVT) in Ponta Delgada, Sao Miguel, in the Azores.

According to Nuno Fazenda, with this line, companies will be able to “finance themselves with Turismo de Portugal without interest to repay part of the refunds due to banks during 2023, with a grace period of two years and a full repayment period of six years.”

This, he added, will allow companies to “soften and expand their capital needs over time.”

A line that, he emphasizes, “meets the demands of the industry.”

“This is a need for companies and we have the answer,” he also emphasized in front of an audience of businessmen and after listening to the addresses of the presidents of the Portuguese Tourism Confederation (CTP) and the Portuguese Association of Travel and Travel Agencies (APTA) in his speeches.

“The Government will also ensure this year the implementation of the measure to strengthen the support program agreed with the Portuguese Tourism Confederation last October in the context of the Income, Wage and Competitiveness Improvement Agreement. This is the grant of 70 million euros to companies in the sector on a non-refundable basis, which reinforces the amounts already received under the Apoiar program,” Nuno Fazenda later said, adding that it was “another response – very important – for the companies.”

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These two measures represent 100 million euros for companies worldwide.

“It’s called doing. And do it with a sense of urgency. When confronted with difficulties, the government must respond with action. Do. And this is a verb that we are already conjugating,” he said, continuing the theme of the 47th APAVT Congress: “Fazer”.

The Secretary of State also recalled that companies are “the engine of the economy”, given that the country “has leading companies” and that it is necessary to “continue to support companies and investments.”

Nuno Fazenda also mentioned that the government is already working on securing other areas of support for companies, which should be announced in the first quarter of next year.

“In European funds, companies and tourism are a priority. Company funding increases by 90% from Portugal 2020 to the total amount provided for in Portugal 2030 and PRR. [Plano de Recuperação e Resiliência]🇧🇷 I repeat, this is a 90% increase in support for companies within the next cycle of European funds. At PRR, we expect to sign a contract very soon to accelerate and transform the tourism agenda. This is an investment of 151 million euros with investments of a business nature, which are very important for the climate and the transition to digital technologies,” he listed.

The official said simplification is also a priority.

“Without losing rigor and transparency, we must continue our efforts to reduce bureaucracy in order to make the state’s actions with companies and citizens more flexible and faster,” he concluded.

About 750 congressmen are participating in the APAVT convention, which will last until Sunday.

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One of the 22 studied transfers from Juventus belongs to the Portuguese.

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The writing

Manchester City deal that brought Cansela to England and Danilo to Italy under investigation

The Juventus management has resigned entirely due to investigations by the Turin State Ministry into alleged falsification of accounts and transfers, among other wrongdoings, and one of the 22 transfers under investigation involves a Portuguese player. It’s the Manchester City deal that brought Joao Cancela to the English and Danilo, formerly of Porto, to the Italians.

The deal in question dates from 2019 and was completed with an estimated payout of €37 million to the British.

The club will also have hidden side player contracts and deferred payments in bookkeeping to avoid financial fair play issues during the covid-19 crisis.

Bonucci’s deals with Milan, Sturaro with Genoa, Arthur’s exchange with Barcelona for Pjanic, the sale of Emre Can to Borussia and others are also being investigated.

The State Ministry of Turin detects, as reported in Italy, false transfers and cross-sales with other emblems without financial compensation, but which are recorded with certain values, allowing capital gains to be recorded in annual reports. Juventus illegally increased profits between 2018 and 2019 in the amount of 155 million euros.

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