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Small-Business Survival Capabilities and Fiscal Programs: Evidence from Oakland

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  • Bartlett, Robert P.
  • Morse, Adair

Abstract

Using City of Oakland data during COVID-19, we document that small-business components of survival capabilities (i.e., revenue resiliency, labor flexibility, and committed costs) vary by firm size. Nonemployer businesses rely on low-cost structures to survive. Microbusinesses (1–5 employees) depend on 14% greater revenue resiliency. Enterprises (6–50 employees) use labor flexibility to survive but face 10%–20% higher residual closure risk from committed costs. The evidence argues for size targeting of financial support programs, including committed costs and revenue-based lending programs. Supporting the capabilities mapping, we find that the Paycheck Protection Program (PPP) increased medium-run survival probability by 20.5% specifically for microbusinesses.

Suggested Citation

  • Bartlett, Robert P. & Morse, Adair, 2021. "Small-Business Survival Capabilities and Fiscal Programs: Evidence from Oakland," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 56(7), pages 2500-2544, November.
    • Handle: RePEc:cup:jfinqa:v:56:y:2021:i:7:p:2500-2544_8
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    Cited by:

    1. Weilun Huang & Hengbin Yin & Seongjin Choi & Mohsin Muhammad, 2022. "Micro- and Small-Sized Enterprises’ Sustainability-Oriented Innovation for COVID-19," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    2. Gustavo Joaquim & J. Christina Wang, 2022. "What Do 25 Million Records of Small Businesses Say about the Effects of the PPP?," Working Papers 22-23, Federal Reserve Bank of Boston.

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