President’s Corner The Impact of 9/11 on Small Businesses
Dear Reader: Certainly! The tragic events of September 11, 2001, had a profound impact on small businesses. Let’s delve into how these attacks affected the entrepreneurial landscape: 1. Immediate Disruption and Losses: • Approximately 18,000 small businesses were either destroyed or displaced due to the attacks. Many of these enterprises were located near the World Trade Center in lower Manhattan. • The Small Business Administration (SBA) stepped in to provide loans as assistance, while the Federal Government utilized Community Development Block Grants and Economic Injury Disaster Loans to support affected small businesses. 2. Market Turmoil and Sector-Specific Challenges: • Stock markets immediately nosedived after 9/11. Airlines and insurance companies were hit hardest. • Airline stocks, particularly those of American Airlines (AAL) and United Airlines (UAL), plummeted as their planes were used by hijackers in the attacks. Insurance companies faced significant challenges due to the scale of claims related to the tragedy. 3. New York City’s Economy and Tourism: • New York City, a hub for small businesses, suffered immensely. Tourism plummeted, affecting local shops, restaurants, and services. • The loss of life and the collapse of the World Trade Center towers disrupted many financial firms and businesses that had offices in the area.
4. Resilience and Recovery:
• Despite the initial shock, the U.S. economy demonstrated resilience. By the end of 2001, the Gross Domestic Product (GDP) had increased over the previous year, showing that the economy had not been critically hurt by the attacks. • Markets eventually bounced back, aided by a resilient American economy and government support and stimulus. In summary, while the immediate impact was significant, small businesses showed remarkable resilience in the face of adversity. The effects of 9/11 continue to shape the entrepreneurial landscape, with some changes subtle and others still impossible to ignore.
Dr. Angelic Cole President & CEO Colorado Black Chamber of Commerce
“Even the smallest act of service, the simplest act of kindness, is a way to honor those we lost, a way to reclaim that spirit of unity that followed 9/11.” President Obama P.S. We are introducing a new column The Business of…...by our new Special Interest Facilitator Dale Hunter. This month’s column is on the water industry, Enjoy!
5 The Acumen
Powered by FlippingBook